Source: EURLEX
Language: en
Format: md

**Council of the**
**European Union**

**Interinstitutional File:**

**2018/0224(COD)**

**Brussels, 22 November 2018**
**(OR. en)**

**14501/18**

**RECH 499**
**COMPET 799**
**IND 359**
**MI 863**
**EDUC 436**
**TELECOM 421**
**ENER 393**
**ENV 786**
**REGIO 129**
**AGRI 569**
**TRANS 563**
**SAN 413**
**CADREFIN 370**
**CODEC 2060**
**IA 386**

**NOTE**

From: Permanent Representatives Committee (Part 1)

To: Council

No. prev. doc.: 14279/1/18 RECH 488 COMPET 776 IND 346 MI 838 EDUC 424
TELECOM 403 ENER 378 ENV 761 REGIO 121 AGRI 554 TRANS 544

SAN 398 CADREFIN 356 CODEC 2002 IA 381 REV 1

No. Cion doc.: 9865/18 RECH 272 COMPET 421 IND 153 MI 436 EDUC 245 TELECOM

170 ENER 224 ENV 413 REGIO 38 AGRI 271 TRANS 248 SAN 181

CADREFIN 79 CODEC 998 IA 189 + ADD 1-6

Subject: Horizon Europe package: Framework Programme for Research and Innovation 20212027

-Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE

–
COUNCIL establishing Horizon Europe the Framework Programme for Research
and Innovation, laying down its rules for participation and dissemination

                      - _Partial general approach_

14501/18 SD/CF/MI/lv 1

# ECOMP.3.C. EN

**I.** **INTRODUCTION**

1. On 7 June 2018, the Commission presented, based on Articles 173, 182, 183 and 188 TFEU,

its proposal for a Regulation of the European Parliament and the Council establishing Horizon

Europe - The Framework Programme for Research and Innovation, laying down its rules for

participation and dissemination (2021-2027).

2. That proposal merges two current legal acts (the Framework Programme and the Rules for

Participation and Dissemination) into one single legal act.

3. A financial envelope for the implementation of the framework programme of €94.1 billion (in

current prices) is envisaged for the 2021-2027 period. In addition, the Commission proposes

to contribute another €3.5 billion from the InvestEU Fund for Horizon Europe, which together

with the €2.4 billion for the Euratom research and training programme, makes a total budget

allocation of €100 billion (€88.7 billion in 2018 prices) for science, research and innovation

related projects. The European Defence Fund envelope is €13 billion.

4. The intention is to have an R&I programme with synergies with other programmes, e.g. the

European Regional Development Fund (ERDF), Digital Europe Programme, Connecting

Europe Facility and the Common Agriculture Policy, which should enable the pursuit of

common objectives.

5. Since Horizon Europe is linked to the Multiannual Financial Framework (MFF), all

provisions with budgetary implications are square bracketed (not part of the partial general

approach). Synergies linked to financing from various funds are also in brackets. Several

provisions of various Articles or Annexes **[1]** are therefore excluded from the Partial General

Approach.

**1** Articles 8, 9, 11, 18, 23 and Annex IV.

14501/18 SD/CF/MI/lv 2

# ECOMP.3.C. EN

6. The same goes for objectives and broad lines of activities of the European Defence Fund **[2]** and

on provisions concerning third countries associated to Horizon Europe **[3]**, which are of a

horizontal nature and depend on progress in other files.

7. Furthermore, the provisions concerning the European Institute of Innovation and Technology

(EIT) in Annex 1a are in brackets subject to further negotiations at technical level.

8. The European Parliament has appointed MEP Dan NICA (S&D) as rapporteur on the

'
Framework Programme **[4]** . The European Parliament s Industry, Research and Energy

Committee (ITRE) voted on the report on 21 November 2018. The European Economic and

Social Committee adopted its opinion on 17 October 2018 **[5]**, whilst the Committee of the

Regions provided its opinion at its 8-10 October Plenary session **[6]** .

**II.** **WORK WITHIN THE COUNCIL**

9. In June 2018, the Bulgarian Presidency launched the discussion in the Research Working

Party. In the months of June and July, the working party engaged in an exchange of views on

the main building blocks ("packages") of the two Horizon Europe proposals, as proposed by

the Austrian Presidency. In addition, the Presidency gathered both general and specific

written comments from delegations.

10. During the above process, the Research Working Party also considered the Commission's

impact assessment. In conclusion, delegations recognised that the Commission's impact

assessment had no major omissions or factual mistakes. Accordingly, the Working Party

proceeded with the examination of the proposals **[7]** .

**2** Article 5.
**3** Articles 12, 18 and 19.
**4** For the specific programme the appointed rapporteur is MEP Christian EHLER (European
People's Party) and the ITRE Committee voted on the report on 21 November 2018.
**5** 13758/18 (opinion covers both the Framework Programme and the Specific Programme).
**6** 13759/18 (opinion covers both the Framework Programme and the Specific Programme).
**7** 13566/18.

14501/18 SD/CF/MI/lv 3

# ECOMP.3.C. EN

11. Based on the material collected during the previous months of deliberations, the Presidency

presented at the Working Party on 3 September 2018 a first compromise text. Since the

beginning of September, the Working Party examined intensively the continuously updated

Presidency compromise texts.

12. The latest Presidency compromise text was examined at the Research Working Party on

15 November 2018. Based on the discussions, the Presidency introduced further changes in

the text in order to prepare the compromise text for Coreper.

13. On 21 November 2018, Coreper discussed the main outstanding issues presented in the

Presidency compromise text. There was broad support on the measures for widening

participation and strengthening the European Research Area (the "Advancing Europe"

package). Some delegations (EL, HU, LT, PL, SK) still expressed concerns due to various

reasons. The Presidency concluded that this package will remain included in the annexed text

and that no further discussions seem necessary.

14. Two changes suggested by the French delegation received broad support at Coreper and have

been introduced in the annexed text. The changes in the Annex compared to the Presidency

compromise text submitted to Coreper **[8]** are in the following parts of the text:

–
Article 7(2)

–
Article 26(1) and (2)

15. Following the discussion, Coreper decided to forward the text in the annex to the Council

(Competitiveness) for its meeting on 29-30 November 2018, with the main outstanding issues

as indicated below in Chapter III.

16. The above-mentioned changes are also indicated in the annex in **bold underline** for new text

and in ~~strikeout~~ for deleted text.

**8** 14279/1/2018 REV1.

14501/18 SD/CF/MI/lv 4

# ECOMP.3.C. EN

17. Malta has submitted a statement on human embryonic stem cell research that will be annexed

to the Council minutes. The Commission announced its intention to submit a statement on the

same issue at the moment of the final adoption of the legal act, as was the case for the current

Framework Programme (Declaration 2013/C 373/02). Poland also announced that it will

submit a statement on Articles 14 and 15.

**III.** **MAIN OUTSTANDING ISSUES**

19. Overall structure of the Programme: A majority of delegations welcome the splitting of the

cluster "Inclusive and Secure Society" into a cluster on "Culture and Inclusive Society" and a

cluster on "Civil Security for Society" in Pillar II. Additional splitting of clusters has proved

to be more controversial: while some delegations expressed their scepticism about the

splitting of clusters and/or any further splitting (EE, EL, FI, IE, SE), there is wide support for

the creation of a separate cluster on Mobility, which is reflected in the current text.

20. Several delegations would still support a separate cluster on Space: CZ, ES, FR, IT, LU, PL,

PT. Some of them have requested at least a separate budget line and programme committee

for space activities. The Presidency proposes to consolidate all space-related activities under

one single cluster (“Digital, Industry and Space”).

21. In Pillar I, "Excellent Science", delegations welcomed the continuation of instruments already

established under the current Framework Programme. Following discussions at technical

level, the Presidency introduced an area of intervention that includes support for researchers

to return to their country of origin within and to the Union. Some delegations (BE, DE, DK,

FI, FR, IE, NL, SE) and the Commission questioned the European Added Value of providing

Framework Programme funding for the return of researchers from within the Union. Other

delegations welcomed the idea (CZ, EE, EL, ES, HR, IT, MT, LT, LV, PT, SI and SK) or are

open for it (CY and UK), the latter stressing that the provisions still need to be refined and

that possible impacts on the budget need to be taken into account.

14501/18 SD/CF/MI/lv 5

# ECOMP.3.C. EN

The European Innovation Council (EIC), as a new structure in the Horizon Europe proposal,

has been the subject of extensive deliberations at technical level. Several delegations

requested that within the EIC Accelerator, the EIC should not only provide blended finance

but also grant-only and equity-only support. Therefore, the Presidency has introduced the

possibility of limited grant-only support. Questions remain on the share of the grant-only

support. Some delegations support the limitation (DE, DK, EL, FR, LV, PL), while others do

not see the need for a capping of this measure (CZ, ES, IE, IT, LT, MT, NL, SE, UK). Other

delegations would like to limit the support stemming from the EIC Accelerator to SMEs only,

not addressing small mid-caps (ES, HR, IE, IT, MT, SI, SK). General concerns about the

architecture of the EIC were raised by FI and IT.

The Presidency has furthermore deleted the possibility of direct submission of proposals

stemming from national or regional programmes for evaluation under only the criterion of the

level of risk. Several delegations have asked for reintroducing this provision (BE, DE, EL,

FR, NL).

14501/18 SD/CF/MI/lv 6

# ECOMP.3.C. EN

22. Parts of Horizon Europe may be implemented through European Partnerships. The Regulation

foresees three forms of European Partnerships: co-programmed, co-funded and

institutionalised. In the course of the negotiations, delegations stressed that they want to be

actively involved in the development and implementation of partnerships from an early stage

and that they should be open for participation from all across Europe. While the intention is to

set out the areas for potential partnerships in the specific programme at a later stage, the

criteria for the selection, implementation, monitoring and evaluation are laid down in Annex

III of the annexed text. The Presidency added a provision in Article 8(2)(a) limiting the

budget share of the European Partnerships in Horizon Europe to a certain percentage (so

called "capping"). Several delegations were open for this idea or explicitly supported it (BE,

CY, DE, EE, EL, HR, HU, LT, LV, MT, PL, PT, SI, SK). A group of delegations (DK, FI,

FR, IT, NL, SE) expressed concerns about a limitation of partnerships. Delegations from both

groups stressed that an evidence-based discussion would be necessary before a final decision

on this topic is taken. The Presidency maintains the idea of capping in Article 8, but decided

not to suggest a concrete figure. The percentage has been put in brackets and will only be

discussed at a later state of negotiations, possibly taking into account further work in the

context of the MFF negotiations.

23. DK and UK have entered parliamentary scrutiny reservations.

24. The Commission reserves its position on the entire compromise proposal. Its reservation

pertains mainly to the inclusion of the European Defence Fund, the changes in the overall

structure in Pillar II (integration of the EIT in the regulation instead of the Specific

Programme, the splitting of clusters), the possible capping of European Partnerships and the

changes for the EIC.

**IV.** **CONCLUSION**

25. The Council is on this basis invited to approve the compromise proposal presented by the

Austrian Presidency appearing in the Annex to this note and to adopt a partial general

approach at its meeting on 29-30 November 2018.

14501/18 SD/CF/MI/lv 7

# ECOMP.3.C. EN

**ANNEX**

**PROPOSAL FOR A REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE**

**COUNCIL ESTABLISHING HORIZON EUROPE – THE FRAMEWORK PROGRAMME**

**FOR RESEARCH AND INNOVATION, LAYING DOWN ITS RULES FOR**

**PARTICIPATION AND DISSEMINATION**

TITLE I

**GENERAL PROVISIONS**

_Article 1_

**Subject matter**

1. This Regulation establishes Horizon Europe - the Framework Programme for Research and

Innovation (‘the Programme’) and the rules for participation and dissemination in indirect

actions under the Programme.

2. It lays down the objectives of the Programme, the budget for the period 2021 – 2027, the

forms of Union funding and the rules for providing such funding.

3. The Programme shall be implemented through:

(a) the specific programme established by Decision …/…/EU **[9]** ;

(aa) a financial contribution to the EIT established by Regulation (EC) No 294/2008;

(b) the specific programme on defence research established by Regulation …/…/EU

Regulation of the Euopean Parliament and of the Council establishing the European

Defence Fund.

**9**

14501/18 SD/CF/MI/lv 8

# ANNEX ECOMP.3.C. EN

4. The terms 'Horizon Europe', 'the Programme' and 'specific programme' used in this Regulation

address matters relevant only to the specific programme described in paragraph 3(a), unless

otherwise explicitly stated.

_Article 2_

**Definitions**

For the purposes of this Regulation, the following definitions apply:

(1) 'research infrastructures' mean facilities that provide resources and services for the research

communities to conduct research and foster innovation in their fields. This definition includes

the associated human resources, and it covers major equipment or sets of instruments;

knowledge-related facilities such as collections, archives or scientific data infrastructures;

computing systems, communication networks, and any other infrastructure, of a unique nature

and open to external users, essential to achieve excellence in research and innovation. Where

relevant, they may be used beyond research, for example for education or public services and

they may be 'single sited', 'virtual' or 'distributed';

(2) 'smart specialisation strategy' has the same meaning as smart specialisation strategy as defined

in Regulation (EU) No 1303/2013 of the European Parliament and of the Council **[10]** and

fulfilling the enabling conditions set out in Regulation (EU) XX [Common Provisions

Regulation];

**10** Regulation (EU) No 1303/2013 of the European Parliament and of the Council of
17 December 2013 laying down common provisions on the European Regional Development
Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for
Rural Development and the European Maritime and Fisheries Fund and laying down general
provisions on the European Regional Development Fund, the European Social Fund, the
Cohesion Fund and the European Maritime and Fisheries Fund and repealing Council
Regulation (EC) No 1083/2006.

14501/18 SD/CF/MI/lv 9

# ANNEX ECOMP.3.C. EN

(3) 'European Partnership' means an initiative where the Union, prepared with early involvement

of Member States and/or Associated Countries, together with private and/or public partners

(such as industry, research organisations, bodies with a public service mission at local,

regional, national or international level or civil society organisations including foundations),

commit to jointly support the development and implementation of a programme of research

and innovation activities, including those related to market, regulatory or policy uptake;

(4) 'open access' means the practice of providing online access to research outputs resulting from

actions funded under the Programme, free of charge to the end-user, in accordance with

Article 10 and 35(3) of this Regulation;

(4a) 'open science' means a new approach to the scientific process based on cooperative work and

new ways of diffusing knowledge by using digital technologies and new collaborative tools;

(5) 'mission' means a portfolio of actions across disciplines and sectors, intended to

–
achieve, within a set timeframe, a measurable goal that could not be achieved through

individual actions,

–
have impact on society through science and technology, and

–
be relevant for a wide range of European citizens;

(6) 'pre-commercial procurement' means the procurement of research and development services

involving risk-benefit sharing under market conditions, and competitive development in

phases, where there is a clear separation of the research and development services procured

from the deployment of commercial volumes of end-products;

(7) 'public procurement of innovative solutions' means procurement where contracting authorities

act as a launch customer for innovative goods or services which are not yet available on a

large-scale commercial basis, and may include conformity testing;

(8) 'access rights' means rights to use results or background;

14501/18 SD/CF/MI/lv 10

# ANNEX ECOMP.3.C. EN

(9) 'background' means any data, know-how or information whatever its form or nature, tangible

or intangible, including any rights such as intellectual property rights, that is held by

beneficiaries prior to their accession to the action and identified by the beneficiaries in writing

as needed for implementing the action or for exploiting its results;

(10) 'dissemination' means the public disclosure of the results by appropriate means (other than

resulting from protecting or exploiting the results), including by scientific publications in any

medium;

(11) 'exploitation' means the use of results in further research and innovation activities other than

those covered by the action concerned, or in developing, creating, manufacturing and

marketing a product or process, or in creating and providing a service, or in standardisation

activities;

(12) 'fair and reasonable conditions' means appropriate conditions, including possible financial

terms or royalty-free conditions, taking into account the specific circumstances of the request

for access, for example the actual or potential value of the results or background to which

access is requested and/or the scope, duration or other characteristics of the exploitation

envisaged;

(13) 'funding body' means a body or organisation, other than the Commission, as referred to in

point (c) of Article 62(1) of the Financial Regulation, to which the Commission has entrusted

budget implementation tasks under the Programme;

(14) 'international European research organisation' means an international organisation, the

majority of whose members are Member States or associated countries, and whose principal

objective is to promote scientific and technological cooperation in Europe;

(15) 'legal entity' means any natural or legal person created and recognised as such under national

law, Union law or international law, which has legal personality and which may, acting in its

own name, exercise rights and be subject to obligations, or an entity without a legal

personality in accordance with Article 197(2)(c) of the Financial Regulation;

14501/18 SD/CF/MI/lv 11

# ANNEX ECOMP.3.C. EN

(16) 'non-profit legal entity' means a legal entity which by its legal form is non-profit-making or

which has a legal or statutory obligation not to distribute profits to its shareholders or

individual members;

(16a) 'SME' means micro-, small- and medium-sized enterprise as defined in Commission

Recommendation 2003/361/EC **[11]** ;

(17) 'small mid-cap' means an entity employing up to 499 employees that are not SMEs;

(17a) 'start-up' means a temporary organisation in the early stage in the life cycle of an enterprise,

creator of innovation designed to search for a repeatable and scaleable business model;

(18) 'results' means any tangible or intangible effect of the action, such as data, know-how or

information, whatever its form or nature, whether or not it can be protected, as well as any

rights attached to it, including intellectual property rights;

(18a) 'research outputs' mean results to which online access can be given in the form of scientific

publications, data or other engineered outcomes and processes such as software, algorithms,

protocols and electronic notebooks;

(19) 'seal of excellence' means a certified label which shows that a proposal submitted to a call for

proposals exceeded all of the evaluation thresholds set out in the work programme, but could

not be funded due to lack of budget available to that call in the work programme;

(20) 'work programme' means the document adopted by the Commission for the implementation of

the specific programme **[12]** in accordance with its Article 12 or the equivalent document in

content and structure adopted by a funding body;

**11**

**12** OJ ….

14501/18 SD/CF/MI/lv 12

# ANNEX ECOMP.3.C. EN

(21) 'reimbursable advance' means the part of a Horizon Europe or EIC blended finance

corresponding to a loan under Title X of the Financial Regulation, but that is directly awarded

by the Union on a non-profit basis to cover the costs of activities corresponding to an

innovation action, and to be reimbursed by the beneficiary to the Union under the conditions

provided for in the contract;

(22) 'contract' means the agreement concluded between the Commission or a funding body with a

legal entity implementing an innovation and market deployment action and supported by a

Horizon Europe or EIC blended finance;

(23) 'classified information' means EU classified information as defined in Article 3 of

Commission Decision (EU, Euratom) 2015/444 as well as classified information of Member

States, classified information of third countries with which the Union has a security

agreement and classified information of international organisation with which the Union has a

security agreement;

(24) 'blending operation' means actions supported by the EU budget, including within blending

facilities pursuant to Article 2(6) of the Financial Regulation, combining non-repayable forms

of support and/or financial instruments from the EU budget with repayable forms of support

from development or other public finance institutions, as well as from commercial finance

institutions and investors;

(25) 'Horizon Europe or EIC blended finance' means a single financial support to an innovation

and market deployment action, consisting in a specific combination of a grant or a

reimbursable advance with an investment in equity;

(27) 'procurement’ means procurement as defined in Article 2(49) of Regulation (EU, Euratom)

2018/1046 [Financial Regulation];

(28) 'affiliated entity’ means any legal entity as defined in Article 187(1) of Regulation (EU,

Euratom) 2018/1046 [Financial Regulation];

14501/18 SD/CF/MI/lv 13

# ANNEX ECOMP.3.C. EN

(30) 'innovation ecosystem' means an ecosystem that brings together at EU level actors or entities

whose functional goal is to enable technology development and innovation. They encompass

relations between material resources (such as funds, equipment, and facilities), institutional

entities (such as higher education institutions and support services, RTOs, companies, venture

capitalists and financial intermediaries) and national, regional and local policy-making and

funding entities;

(31) 'low R&I performing Member State' means a Member State that under Part 4, "Widening

participation and sharing excellence", is eligible to submit a proposal as coordinator.

_Article 3_

**Programme objectives**

1. The Programme’s general objective is to deliver scientific, technological, economic and

societal impact from the Union’s investments in research and innovation so as to strengthen

the scientific and technological bases of the Union and foster its competitiveness in all

Member States including in its industry, deliver on the Union strategic priorities, contribute to

tackling global challenges, including the Sustainable Development Goals by following the

principles of the Agenda 2030 and the Paris Agreement, and to strengthen the European

Research Area. The Programme shall thus maximise Union added value by focusing on

objectives and activities that cannot be effectively realised by Member States acting alone, but

in cooperation.

2. The Programme has the following specific objectives:

(a) to promote scientific excellence, support the creation and diffusion of high-quality new

fundamental and applied knowledge, skills, training and mobility of researchers, attract

talent at all levels and contribute to full engagement of Union's talent pool in actions

supported under this Programme;

14501/18 SD/CF/MI/lv 14

# ANNEX ECOMP.3.C. EN

(b) to generate knowledge, strengthen the impact of research and innovation in developing,

supporting and implementing Union policies, and support the uptake of innovative

solutions in industry, notably in SMEs, and society to address global challenges, inter

alia the Sustainable Development Goals;

(c) to foster all forms of innovation, facilitate technological development, demonstration

and knowledge transfer, and strengthen deployment of innovative solutions;

(d) to optimise the Programme's delivery for strengthening the European Research Area,

and to foster the excellence-based participations from all Member States in Horizon

Europe and to facilitate collaborative links in European research and innovation.

_Article 4_

**Programme structure**

1. The Programme is structured in the following parts contributing to the general and specific

objectives set out in Article 3:

(1) Pillar I Excellent Science' with the following components:

(a) the European Research Council (ERC);

(b) Marie Skłodowska-Curie Actions (MSCA);

(c) research infrastructures.

(2) Pillar II 'Global Challenges and European Industrial Competitiveness' with the

following components, taking into account that social sciences and humanities (SSH)

shall play an important role across all clusters:

(a) cluster 'Health';

(b) cluster 'Culture and Inclusive Society';

14501/18 SD/CF/MI/lv 15

# ANNEX ECOMP.3.C. EN

(c) cluster ‘Civil Security for Society’;

(d) cluster 'Digital, Industry and Space';

(e) cluster 'Climate and Energy';

(ee) cluster 'Mobility';

(f) cluster 'Bioeconomy, Food, Natural Resources and Environment';

(g) non-nuclear direct actions of the Joint Research Centre (JRC).

(3) Pillar III ‘Innovative Europe’ with the following components:

(a) the European Innovation Council (EIC);

(b) European innovation ecosystems;

(c) the European Institute of Innovation and Technology (EIT) established by

Regulation (EC) No 294/2008.

(4) Part 'Widening participation and strengthening the European Research Area', with the

following components:

(a) widening participation and sharing excellence;

(b) reforming and enhancing the European R&I System.

2. The broad lines of activities are set out in Annex I.

14501/18 SD/CF/MI/lv 16

# ANNEX ECOMP.3.C. EN

_Article 5_

**Activities with defence applications**

1. Activities to be carried out under the specific programme referred to in Article 1(3)(b) and

which are laid down in Regulation …. establishing the European Defence Fund, shall have an

exclusive focus on defence applications, with the objective as set out in paragraph 3 of this

article.

2. This Regulation does not apply to the specific programme referred to in Article 1(3)(b), with

the exception of this Article, Article 1, and Article 9(1).

3. Insofar as the specific programme referred to in Article 1(3)(b) is concerned, the Programme

shall have the following objectives and broad lines of activities:

[(a) activities aiming to foster the global competitiveness, efficiency and innovation capacity

of the European defence, technological and industrial base;

(b) activities aiming to foster the better exploitation of the industrial potential of innovation,

research and technological development, at each stage of the industrial life cycle, for

defence applications, thus contributing to the Union strategic autonomy.]

_Article 6_

**Implementation and forms of EU funding**

1. The Programme shall be implemented in direct management in accordance with the Financial

Regulation or in indirect management with funding bodies referred to in Article 62(1)(c) of

the Financial Regulation.

2. The Programme may provide funding to indirect actions in any of the forms laid down in the

Financial Regulation, in particular grants as the main form of support in the programme. It

may also provide financing through prizes, procurements and financial instruments within

blending operations and equity support under the EIC Accelerator.

14501/18 SD/CF/MI/lv 17

# ANNEX ECOMP.3.C. EN

3. The rules for participation and dissemination laid down in this Regulation shall apply to

indirect actions.

4. The main types of action to be used under the Programme are set out and defined in Annex II.

All forms of funding shall be used in a flexible manner across all objectives of the Programme

with their use being determined on the basis of the needs and the characteristics of the

particular objectives.

5. The Programme shall also support direct actions undertaken by the JRC. Where these actions

contribute to initiatives established under Article 185 or Article 187 TFEU, this contribution

shall not be considered as part of the financial contribution allocated to those initiatives.

6. The implementation of the Specific Programme **[13]** and the EIT **[14]** shall

(a) be facilitated by a transparent and strategic multiannual planning of research and

innovation activities as laid down in the specific programme, in particular for the pillar

'Global Challenges and European Industrial Competitiveness', closely involving

Member States and taking into account views of stakeholders and, if applicable, of

citizens about priorities and the suitable types of action and forms of implementation to

use;

(b) reflect international cooperation, expanding R&I collaborative links throughout the

Union and beyond, open science and equal opportunities and the contributions of the

social sciences and humanities as cross-cutting principles;

(c) ensure alignment with other relevant Union programmes and increase synergies with

national and regional funding programmes and priorities, thereby strengthening the

ERA.

7. Horizon Europe activities shall be primarily delivered through open, competitive calls for

proposals, including within missions and European Partnerships.

**13** [doc. 9870/18]
**14**

14501/18 SD/CF/MI/lv 18

# ANNEX ECOMP.3.C. EN

8. Research and innovation activities carried out under the specific Programme referred to in

Article 1(3)(a) and under the EITshall have an exclusive focus on civil applications.

9. The Programme shall ensure the promotion of equal opportunities for all, and the

implementation of gender mainstreaming, and of the gender dimension in the research and

innovation content. Attention shall be paid to encouraging gender balance, subject to the

situation in the field of research and innovation concerned, in evaluation panels and in bodies

such as expert groups.

_Article 7_

**Missions**

1. Missions shall be programmed within the pillar 'Global Challenges and European Industrial

Competitiveness ', but may also benefit from actions carried out within other parts of the

Programme. Missions shall be based on challenges relevant for a wide range of European

citizens, allow for competing solutions, resulting in pan-European added value and impact.

2. The missions shall be ~~assessed~~ **defined** and implemented in accordance with the Specific

Programme, ensuring the active and early involvement of the Member States. Evaluation of

proposals under the missions shall be carried out in accordance with Article 26.

3. Missions shall:

(a) have a clear research and innovation content, EU-added value, and contribute to

reaching Union priorities and Horizon Europe programme objectives laid down in

Article 3;

(b) be bold and inspirational, and have wide, scientific, technological, societal and/or

economic and/or policy relevance and impact;

(c) indicate a clear direction and be targeted, measurable, time-bound and have a clear

budget frame;

14501/18 SD/CF/MI/lv 19

# ANNEX ECOMP.3.C. EN

(d) be selected in a transparent manner and be centered on ambitious but realistic goals and

research, development and innovation activities;

(e) stimulate activity across disciplines (including Social Sciences and Humanities) and

enable active participation of stakeholders from public and private sectors, including

citizens and end-users and encompassing activities from a broad range of TRLs,

including lower TRLs;

(f) be open to multiple, bottom-up approaches and solutions taking into account human and

societal needs and benefits and recognizing the importance of diverse contributions to

achieve these missions.

4. The Commission shall monitor and evaluate each mission in accordance with Annex V of this

regulation, including progress towards short, medium and long-term targets, covering

implementation, monitoring and phasing-out of the missions. A review of the first missions

established under Horizon Europe shall take place no later than 2023 and before any decision

is taken on creating new missions, continuing, terminating or redirecting ongoing missions.

_Article 8_

**European Partnerships**

1. Parts of Horizon Europe may be implemented through European Partnerships. The

involvement of the Union in European Partnerships may take any of the following forms:

(a) participation in partnerships set up on the basis of memoranda of understanding and/or

contractual arrangements between the Commission and the partners referred to in

Article 2(3), specifying the objectives of the partnership, related commitments from all

involved sides for financial and/or in-kind contributions of the partners, key

performance and impact indicators, outputs to be delivered and reporting modalities.

They include the identification of complementary research and innovation activities that

are implemented by the partners and by the Programme (Co-programmed European

Partnerships);

14501/18 SD/CF/MI/lv 20

# ANNEX ECOMP.3.C. EN

(b) participation in and financial contribution to a programme of research and innovation

activities, specifying the objectives, key performance and impact indicators, and outputs

to be delivered, based on the commitment of the partners for financial and/or in-kind

contributions and integration of their relevant activities using a Programme co-fund

action (Co-funded European Partnerships); [financial contributions stemming from

ESIF shall be allowed and considered as a national contribution.]

(c) participation in and financial contribution to research and innovation programmes

undertaken by several Member States in accordance with Article 185 TFEU, or by

bodies established pursuant to Article 187 TFEU, such as Joint Undertakings, or by the

EIT Knowledge and Innovation Communities in compliance with the EIT Regulation

(Institutionalised European Partnerships). Such partnerships shall be implemented only

where other parts of the Horizon Europe programme, including other forms of European

Partnerships would not achieve the objectives or would not generate the necessary

expected impacts, and if justified by a long-term perspective and high degree of

integration. Partnerships in accordance with Article 185 TFEU or pursuant to Article

187 TEFU shall implement a central management of all financial contributions, while

respecting the principle that the contribution from one participating state will not be

used to support a beneficiary from another participating state, unless otherwise agreed

among all participating states concerned. The rules for such partnerships shall specify

inter alia the objectives, key performance and impact indicators, and outputs to be

delivered, as well as the related commitments for financial and/or in-kind contributions

of the partners. [Financial contributions stemming from ESIF shall be allowed and

considered as a national contribution.]

2. European Partnerships shall:

(a) Be established for addressing European or global challenges only in cases where they

will more effectively achieve objectives of Horizon Europe than the Union alone. Those

parts shall have an appropriate share of the budget of Horizon Europe not exceeding

[XY]%, and within each cluster in Pillar II, the majority of the budget shall be allocated

to actions outside of European partnerships;

14501/18 SD/CF/MI/lv 21

# ANNEX ECOMP.3.C. EN

(b) Adhere to the principles of Union added value, transparency, openness, impact within

and for Europe, leverage effect on sufficient scale, long-term financial commitment of

all the involved parties, flexibility in implementation, coherence, coordination and

complementarity with Union, local, regional, national and, where relevant, international

initiatives or other partnerships and missions;

(c) Have a clear life-cycle approach, be time limited and include conditions for phasing-out

the Programme funding.

Provisions and criteria for their selection, implementation, monitoring, evaluation and

phasing-out are set out in Annex III.

_Article 9_

**Budget**

1. The financial envelope for the implementation of the Framework Programme for the period

2021 – 2027 shall consist of [EUR 94 100 000 000 in current prices] for the specific

programme referred to in Article 1(3)(a) and for the European Institute of Innovation and

Technology (EIT) and [EUR13 000 000 000 in current prices] for the specific programme

referred to in Article 1(3)(b).

2. The indicative distribution of the amount referred to in paragraph 1, for the specific

programme referred to in Article 1(3)(a) and for the EIT, shall be:

(a) [EUR 25 800 000 000] for Pillar I 'Open Science' for the period 2021-2027, of which

(1) [ EUR 16 600 000 000] for the European Research Council;

(2) [EUR 6 800 000 000] for Marie Skłodowska-Curie Actions;

(3) [EUR 2 400 000 000] for research infrastructures;

14501/18 SD/CF/MI/lv 22

# ANNEX ECOMP.3.C. EN

(b) [EUR 52 700 000 000] for Pillar II 'Global Challenges and Industrial Competitiveness'

for the period 2021-2027, of which

(1) [EUR 7 700 000 000] for cluster 'Health';

(2) [EUR 2 800 000 000] for cluster 'Inclusive and Secure Society';

(3) [EUR 15 000 000 000] for cluster 'Digital and Industry';

(4) [EUR 15 000 000 000] for cluster 'Climate, Energy and Mobility';

(5) [EUR 10 000 000 000] for cluster 'Food and Natural Resources';

(6) [EUR 2 200 000 000] for the non-nuclear direct actions of the Joint Research

Centre (JRC);

(c) [EUR 13 500 000 000] for Pillar III 'Open Innovation' for the period 2021-2027, of

which

(1) [EUR 10 500 000 000] for the European Innovation Council, including up to

[EUR 500 000 000] for European Innovation Ecosystems;

(2) [EUR 3 000 000 000] for the European Institute of Innovation and Technology

(EIT);

(d) [EUR 2 100 000 000] for Part 'Strengthening the European Research Area' for the

period 2021-2027, of which

(1) [EUR 1 700 000 000] for 'sharing excellence';

(2) [EUR 400 000 000] for 'reforming and enhancing the European R&I System'.

14501/18 SD/CF/MI/lv 23

# ANNEX ECOMP.3.C. EN

3. [In order to respond to unforeseen situations or to new developments and needs, the

Commission may, within the annual budgetary procedure, deviate from the amounts referred

to in paragraph 2 up to a maximum of [10%]. No such deviation shall be allowed in respect of

the amounts referred to in points (b) (6) of paragraph 2 of this Article and the total amount set

out for Part 'Strengthening the European Research Area' of paragraph 2 of this Article.]

4. The amount referred to in paragraph 1 for the specific programme referred to in Article

1(3)(a) and for the EIT may also cover expenses for preparation, monitoring, control, audit,

evaluation and other activities and expenditures necessary for managing and implementing the

Programme, including all administrative expenditure, as well as evaluating the achievement of

its objectives. It may moreover cover expenses relating to the studies, meetings of experts,

information and communication actions, in so far as they are related to the objectives of the

Programme, as well as expenses linked to information technology networks focusing on

information processing and exchange, including corporate information technology tools and

other technical and administrative assistance needed in connection with the management of

the Programme.

5. If necessary, appropriations may be entered in the budget beyond 2027 to cover the expenses

provided for in paragraph 4, to enable the management of actions not completed by 31

December 2027.

6. Budgetary commitments for actions extending over more than one financial year may be

broken down over several years into annual instalments.

7. Without prejudice to the Financial Regulation, expenditure for actions resulting from projects

included in the first work programme may be eligible as from 1 January 2021.

14501/18 SD/CF/MI/lv 24

# ANNEX ECOMP.3.C. EN

8. [Resources allocated to Member States under shared management and transferrable in

accordance with Article 21 of Regulation (EU) XX […Common Provisions Regulation] may,

at their request, be transferred to the Programme. The Commission shall implement those

resources directly in accordance with point (a) of Article 62(1) of the Financial Regulation or

indirectly in accordance with point (c) of that Article. Those resources shall be used for the

benefit of the Member State concerned, unless decided otherwise by the relevant managing

authority of that Member state].

9. Horizon Europe is designed to be implemented in synergy with other Union funding

programmes, while seeking maximal simplification. A non-exhaustive list of synergies with

other Union funding programmes is included in Annex IV.

_Article 10_

**Open science**

1. Open access to scientific publications resulting from research funded under the Programme

and open access to research data, including those underlying scientific publications, shall be

ensured in accordance with Article 35(3) of this regulation. The latter shall also be in line with

the principle 'as open as possible, as closed as necessary'. Open access to other research

outputs shall be encouraged, including for the benefit of SMEs.

2. Responsible management of research data shall be ensured in line with the principles

‘Findability’, ‘Accessibility’, ‘Interoperability’ and ‘Reusability’ (FAIR). Attention shall also

be paid to the long-term preservation of data.

3. Open science practices including and beyond open access to research outputs and responsible

management of research data shall be promoted and encouraged.

14501/18 SD/CF/MI/lv 25

# ANNEX ECOMP.3.C. EN

_Article 11_

**Complementary funding**

Actions awarded a Seal of Excellence certification, or which comply with the following cumulative,

comparative, conditions:

(a) they have been assessed in a call for proposals under the Programme;

(b) they comply with the minimum quality requirements of that call for proposals;

(c) they may not be financed under that call for proposals only due to budgetary constraints,

[may receive support from the European Regional Development Fund, the Cohesion Fund, the

European Social Fund+ or the European Agricultural Fund for Rural Development, in accordance

with paragraph 5 of Article [67] of Regulation (EU) XX [Common Provisions Regulation] and

Article [8] or Regulation (EU) XX [Financing, management and monitoring of the Common

Agricultural Policy], provided that such actions are consistent with the objectives of the programme

concerned. The rules of the Fund providing support shall apply.]

_Article 12_

**Third countries associated to the Programme** **[15]**

[1. The Programme shall be open to association of the following third countries:

(a) European Free Trade Association (EFTA) members which are members of the

European Economic Area (EEA), in accordance with the conditions laid down in the

EEA agreement;

**15** [This article is part of the MFF negotiating box and will therefore be modified based on
horizontal orientation. It is understood that the association of EFTA members should be in
accordance with the specific conditions laid down in agreements between the Union and those
countries.]

14501/18 SD/CF/MI/lv 26

# ANNEX ECOMP.3.C. EN

(b) acceding countries, candidate countries and potential candidates, in accordance with the

general principles and general terms and conditions for the participation of those

countries in Union programmes established in the respective framework agreements and

Association Council decisions, or similar agreements, and in accordance with the

specific conditions laid down in agreements between the Union and those countries;

(c) countries covered by the European Neighbourhood Policy, in accordance with the

general principles and general terms and conditions for the participation of those

countries in Union programmes established in the respective framework agreements and

Association Council decisions, or similar agreements, and in accordance with the

specific conditions laid down in agreements between the Union and those countries;

(d) third countries and territories that fulfil all of the following criteria:

i. a good capacity in science, technology and innovation;

ii. commitment to a rules-based open market economy, including fair and equitable

dealing with intellectual property rights, backed by democratic institutions;

iii. active promotion of policies to improve the economic and social well-being of

citizens.

Association to the Programme of each of the third countries under point(d) shall be in

accordance with the conditions laid down in a specific agreement covering the

participation of the third country to any Union programme, provided that the agreement:

–
ensures a fair balance as regards the contributions and benefits of the third country

participating in the Union programmes;

–
lays down the conditions of participation in the programmes, including the

calculation of financial contributions to individual programmes and their

administrative costs. These contributions shall constitute assigned revenues in

accordance with Article 21(5) of the Financial Regulation;

14501/18 SD/CF/MI/lv 27

# ANNEX ECOMP.3.C. EN

–
does not confer to the third country a decisional power on the programme;

–
guarantees the rights of the Union to ensure sound financial management and to

protect its financial interests.

2. The scope of association of each third country to the Programme shall take into account the

objective of driving economic growth in the Union through innovation. Accordingly, with the

exception of EEA members, acceding countries, candidate countries and potential candidates,

parts of the Programme may be excluded from an association agreement for a specific

country.

3. The association agreement shall, where appropriate, provide for the participation of legal

entities established in the Union in equivalent programmes of associated countries in

accordance with the conditions laid down therein.

4. The conditions determining the level of financial contribution shall ensure an automatic

correction of any significant imbalance compared to the amount that entities established in the

associated country receive through participation in the Programme, taking into account the

costs in the management, execution and operation of the Programme.]

14501/18 SD/CF/MI/lv 28

# ANNEX ECOMP.3.C. EN

_TITLE II_

_**RULES FOR PARTICIPATION AND DISSEMINATION**_

_CHAPTER I_

_**General provisions**_

_Article 13_

**Funding bodies and direct actions of JRC**

1. Funding bodies may depart from the rules set out in this Title, except from Articles 14, 15 and

16, in duly justified cases and only if this is provided for in the basic act setting up the

funding body or entrusting budget implementation tasks to it or, for funding bodies under

Article 62(1)(c)(ii), (iii) or (v) of the Financial Regulation, if it is provided for in the

contribution agreement and their specific operating needs or the nature of the action so

require.

2. The rules set out in this Title shall not apply to direct actions undertaken by the JRC.

_Article 14_

**Eligible actions**

1. Without prejudice to paragraph 2 of this Article, only actions implementing the objectives

referred to in Article 3 shall be eligible for funding.

14501/18 SD/CF/MI/lv 29

# ANNEX ECOMP.3.C. EN

The following fields of research shall not be financed:

(a) activities aiming at human cloning for reproductive purposes;

(b) activities intended to modify the genetic heritage of human beings which could make

such changes heritable **[16]** ;

(c) activities intended to create human embryos solely for the purpose of research or for the

purpose of stem cell procurement, including by means of somatic cell nuclear transfer.

2. Research on human stem cells, both adult and embryonic, may be financed, depending both

on the contents of the scientific proposal and the legal framework of the Member States

involved. No funding shall be granted, neither within nor outside the EU, for research

activities that are prohibited in all the Member States. No activity shall be funded in a

Member State where such activity is forbidden.

_Article 15_

**Ethics** **[17]**

1. Actions carried out under the Programme shall comply with ethical principles and relevant

national, Union and international legislation, including the Charter of Fundamental Rights of

the European Union and the European Convention on Human Rights and its Supplementary

Protocols.

Particular attention shall be paid to the principle of proportionality, the right to privacy, the

right to the protection of personal data, the right to the physical and mental integrity of a

person, the right to non-discrimination, the need to ensure high levels of human health

protection as well as the protection of the environment.

**16** Research relating to cancer treatment of the gonads can be financed.

**17** Subject to the final legal act, the Commission will provide a declaration on human embryonic
stem cell research as in H2020 (Declaration 2013 / C 373/02).

14501/18 SD/CF/MI/lv 30

# ANNEX ECOMP.3.C. EN

2. Entities participating in the action shall provide:

(a) an ethics self-assessment identifying and detailing all the foreseeable ethics issues

related to the objective, implementation and likely impact of the activities to be funded,

including a confirmation of compliance with paragraph 1, and a description of how it

will be ensured;

(b) a confirmation that the activities will comply with the European Code of Conduct for

Research Integrity published by All European Academies and that no activities

excluded from funding will be conducted;

(c) for activities carried out outside the Union, a confirmation that the same activities would

have been allowed in a Member State; and

(d) for activities making use of human embryonic stem cells, as appropriate, details of

licensing and control measures that shall be taken by the competent authorities of the

Member States concerned as well as details of the ethics approvals that shall be obtained

before the activities concerned start.

3. Proposals shall be systematically screened to identify those actions raising complex or serious

ethics issues and submit them to an ethics assessment. The ethics assessment shall be carried

out by the Commission unless it is delegated to the funding body. For actions involving the

use of human embryonic stem cells or human embryos, an ethics assessment shall be

mandatory. Ethics screenings and assessments shall be carried out with the support of ethics

experts. The Commission and the funding bodies shall ensure the transparency of the ethics

procedures as much as possible.

4. Entities participating in the action shall obtain all approvals or other mandatory documents

from the relevant national, local ethics committees or other bodies such as data protection

authorities before the start of the relevant activities. Those documents shall be kept on file and

provided to the Commission or funding body upon request.

14501/18 SD/CF/MI/lv 31

# ANNEX ECOMP.3.C. EN

5. If appropriate, ethics checks shall be carried out by the Commission or funding body. For

serious or complex ethics issues, the checks shall be carried out by the Commission unless it

is delegated to the funding body.

Ethics checks shall be carried out with the support of ethics experts.

6. Actions which do not fulfil the ethical requirements referred to in paragraph 1-4 may be

rejected or terminated at any time.

_Article 16_

**Security**

1. Actions carried out under the Programme shall comply with the applicable security rules and

in particular rules on protection of classified information against unauthorised disclosure,

including compliance with any relevant national and Union law. In case of research carried

out outside the Union using and/or generating classified information, it is necessary that, in

addition to the compliance with those requirements, a security agreement shall have to be

concluded between the Union and the third country in which the research is conducted.

2. Where appropriate, proposals shall include a security self-assessment identifying any security

issues and detailing how these issues will be addressed in order to meet the relevant national

and Union law.

3. Where appropriate, the Commission or funding body shall carry out a security scrutiny for

proposals raising security issues.

4. Where appropriate, the actions shall comply with Decision (EU, Euratom) 2015/444, and its

implementing rules.

5. Entities participating in the action shall ensure the protection against unauthorised disclosure

of classified information used and/or generated by the action. They shall provide proof of

personal and/or facility security clearance from the relevant national security authorities, prior

to the start of the activities concerned.

14501/18 SD/CF/MI/lv 32

# ANNEX ECOMP.3.C. EN

6. If external experts have to deal with classified information, the appropriate security clearance

shall be required before those experts are appointed.

7. Where appropriate, the Commission or funding body may carry out security checks.

8. Actions which do not comply with the security requirements referred to in paragraphs 1, 2, 4,

5 and 7 may be rejected or terminated at any time.

_CHAPTER II_

_**Grants**_

_Article 17_

**Grants**

Grants under the Programme shall be awarded and managed in accordance with Title VIII of the

Financial Regulation, unless otherwise specified in this Chapter.

_Article 18_

**Entities eligible for participation**

1. Any legal entity, regardless of its place of establishment, or international organisation may

participate in actions under the Programme, provided that the conditions laid down in this

Regulation have been met together with any conditions laid down in the work programme or

call.

2. Entities shall be part of a consortium that shall include at least three independent legal entities

each established in a different Member State or associated country and with at least one of

them established in a Member State, unless:

(a) the work programme provides otherwise, if duly justified;

14501/18 SD/CF/MI/lv 33

# ANNEX ECOMP.3.C. EN

(b) the action is one referred to in paragraphs 3 or 4.

3. European Research Council (ERC) frontier research actions, European Innovation Council

(EIC) actions, training and mobility actions or programme co-fund actions may be

implemented by one or more legal entities, one of which must be established in a Member

State or associated country.

4. Coordination and support actions may be implemented by one or more legal entities, which

may be established in a Member State, associated country [or in another third country] **[18]** .

5. For actions related to Union strategic assets, interests, autonomy or security, the work

programme may provide that the participation can be limited to those legal entities established

in Member States only, or, to those legal entities established in specified associated [or other

third countries] in addition to Member States. Any limitation of the participation of legal

entities established in associated countries which are EEA members shall be in accordance

with the terms and conditions of the EEA Agreement.

6. Where appropriate and duly justified, the work programme may provide for eligibility criteria

in addition to those set out in paragraphs 2, 3, 4, and 5 according to specific policy

requirements or to the nature and objectives of the action, including the number of legal

entities, the type of legal entity and the place of establishment.

7. [For actions benefiting from amounts under Article 9(8), the participation shall be limited to a

single legal entity established in the jurisdiction of the delegating Managing Authority, except

if otherwise agreed with the Managing Authority and provided for in the work programme.]

8. Where indicated in the work programme, the JRC may participate in actions.

9. The JRC, international European research organisations and legal entities created under Union

law shall be deemed to be established in a Member State other than the ones in which other

legal entities participating in the action are established.

**18** Brackets requested by MFF negotiators.

14501/18 SD/CF/MI/lv 34

# ANNEX ECOMP.3.C. EN

10. For European Research Council (ERC) frontier research actions and training and mobility

actions, international organisations with headquarters in a Member State or associated country

shall be deemed to be established in this Member State or associated country.

_Article 19_

**Entities eligible for funding**

1. Entities are eligible for funding if they are established in a Member State or associated

country.

[For actions benefiting from amounts under Article 9(8), only entities established in the

jurisdiction of the delegating Managing Authority shall be eligible for funding out of these

amounts.]

2. [Entities established in a non-associated third country should in principle bear the cost of their

participation. However, for low to middle income countries **[19]** and exceptionally for other non

associated third countries they could be eligible for funding in an action if:

(a) the third country is identified in the work programme adopted by the Commission ; or

(b) the Commission or funding body consider that its participation is essential for

implementing the action;]

3. Affiliated entities are eligible for funding in an action if they are established in a Member

State, Associated country, [or in a third country] identified in the work programme adopted by

the Commission.

**19** A list of the low to middle income countries will be attached to the work programme.

14501/18 SD/CF/MI/lv 35

# ANNEX ECOMP.3.C. EN

_Article 20_

**Calls for proposals**

1. Notwithstanding the specific provisions in paragraph 2, the content of the calls for proposals

for all actions shall be included in the work programme.

2. For the development of portfolios of actions under EIC Pathfinder transition activities:

(a) the launch and the content of the calls for proposals shall be determined with regard to

objectives and budget established by the work programme in relation with the

concerned portfolio of actions;

(b) Each proposal selected under the EIC Pathfinder through a call for proposals shall

include a fixed amount of EUR 50,000 to carry out complementary activities, such as

assessing possible spin-offs, potential market-creating innovations or developing a

convincing business plan. The use of this amount will be subject to a prior authorisation

by the Commission. The Programme Committee established under the Specific

Programme shall be informed of such cases.

3. If necessary to achieve their objectives, calls may, in exceptional cases, be restricted to

develop additional activities or to add additional partners to existing actions. In addition the

work programme may foresee the possibility for legal entities from low R&I performing

Member States to join already selected collaborative R&I actions, subject to the agreement of

the respective consortium and provided that legal entities from such Member States are not

yet participating in it.

4. A call for proposals is not required for coordination and support actions or programme co

fund actions which:

(a) are to be carried out by the JRC or legal entities identified in the work programme; and

(b) do not fall within the scope of a call for proposals, in accordance with Article 195(e) of

the Financial Regulation.

14501/18 SD/CF/MI/lv 36

# ANNEX ECOMP.3.C. EN

5. The work programme shall specify calls for which "Seals of Excellence" will be awarded.

With prior authorisation from the applicant, information concerning the application and the

evaluation may be shared with interested financing authorities, subject to the conclusion of

confidentiality agreements.

_Article 21_

**Joint calls**

The Commission or funding body may issue a joint call for proposals with:

(a) third countries, including their scientific and technological organisations or agencies;

(b) international organisations;

(c) non-profit legal entities.

In the case of a joint call, joint procedures shall be established for selection and evaluation of

proposals. The procedures shall involve a balanced group of experts appointed by each party.

14501/18 SD/CF/MI/lv 37

# ANNEX ECOMP.3.C. EN

_Article 22_

**Pre-commercial procurement and procurement of innovative solutions**

1. Actions may involve or have as their primary aim pre-commercial procurement or public

procurement of innovative solutions that shall be carried out by beneficiaries which are

contracting authorities or contracting entities as defined in Directives 2014/23/EU **[20]**,

2014/24/EU **[21]**, 2014/25/EU **[22]** and 2009/81/EC **[23]** .

2. The procurement procedures:

(a) shall comply with the principles of transparency, non- discrimination, equal treatment,

sound financial management, proportionality and competition rules;

(b) for pre-commercial procurement, may provide for specific conditions such as the place

of performance of the procured activities being limited to the territory of the Member

States and of associated countries;

(c) may authorise the award of multiple contracts within the same procedure (multiple

sourcing); and

(d) shall provide for the award of the contracts to the tender(s) offering best value for

money while ensuring absence of conflict of interest.

**20** Directive 2014/23/EU of the European Parliament and of the Council of 26 February 2014 on
the award of concession contracts (OJ L 94, 28.03.2014, p. 1).
**21** Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on
public procurement and repealing Directive 2004/18/EC. (OJ L 94, 28.03.2014, p. 65).
**22** Directive 2014/25/EU of the European Parliament and of the Council of 26 February 2014 on
procurement by entities operating in the water, energy, transport and postal services sectors
and repealing Directive 2004/17/EC (OJ L 94, 28.03.2014, p. 243).
**23** Directive 2009/81/EC of the European Parliament and of the Council of 13 July 2009 on the
coordination of procedures for the award of certain works contracts, supply contracts and
service contracts by contracting authorities or entities in the fields of defence and security,
and amending Directives 2004/17/EC and 2004/18/EC (OJ L 216, 20.08.2009, p.76).

14501/18 SD/CF/MI/lv 38

# ANNEX ECOMP.3.C. EN

3. The contractor generating results in pre-commercial procurement shall own at least the

attached intellectual property rights. The contracting authorities shall enjoy at least royalty

free access rights to the results for their own use and the right to grant, or require the

participating contractors to grant, non-exclusive licences to third parties to exploit the results

for the contracting authority under fair and reasonable conditions without any right to sub

license. If a contractor fails to commercially exploit the results within a given period after the

pre-commercial procurement as identified in the contract, the contracting authorities, after

having discussed the issue with the contractor, can require it to transfer any ownership of the

results to the contracting authorities.

_**24**_ _[Article 23_

**Cumulative funding**

An action that has received a contribution from another Union programme may also receive a

contribution under the Programme, provided that the contributions do not cover the same costs. The

rules of each contributing Union programme shall apply to its respective contribution to the action.

The cumulative funding shall not exceed the total eligible costs of the action and the support from

different Union programmes may be calculated on a pro-rata basis in accordance with the

documents setting out the conditions for support.]

_Article 24_

**Selection criteria**

1. In addition to the exceptions mentioned in Article 198(5) of the Financial Regulation, the

financial capacity shall be verified only for the coordinator and only if the requested funding

from the Union for the action is equal to or greater than EUR 500 000.

**24** [Subject to the outcome of negotiations on the respective legal acts.]

14501/18 SD/CF/MI/lv 39

# ANNEX ECOMP.3.C. EN

2. However, if there are grounds to doubt the financial capacity or if there is a higher risk due to

the participation in several ongoing actions funded by Union research and innovation

programmes, the Commission or funding body shall verify also the financial capacity of other

applicants or of coordinators below the threshold referred to in paragraph 1.

3. If the financial capacity is structurally guaranteed by another legal entity, the financial

capacity of the latter shall be verified.

4. In case of weak financial capacity, the Commission or funding body may make participation

of the applicant conditional on provision of a declaration on joint and several liability by an

affiliated entity.

5. The contribution to the Mutual Insurance Mechanism set out in Article 33 shall be considered

a sufficient guarantee under Article 152 of the Financial Regulation. No additional guarantee

or security may be accepted from beneficiaries or imposed upon them.

_Article 25_

**Award criteria**

1. A proposal shall be evaluated on the basis of the following award criteria:

(a) excellence;

(b) impact;

(c) quality and efficiency of the implementation.

2. Only the criterion referred to in point (a) of paragraph 1 shall apply to proposals for ERC

frontier research actions.

3. The work programme shall lay down further details of the application of the award criteria

laid down in paragraph 1, and may specify weightings and thresholds.

14501/18 SD/CF/MI/lv 40

# ANNEX ECOMP.3.C. EN

_Article 26_

**Evaluation**

1. Proposals shall be evaluated by the evaluation committee which shall be composed of external

independent experts.

For EIC activities, missions and in duly justified cases as set out in the work programme

**adopted by the Commission**, the evaluation committee may be composed partially or, in the

case of coordination and support actions, partially or fully of representatives of Union

Institutions or bodies as referred to in Article 150 of the Financial Regulation.

The evaluation process may be followed by independent observers.

2. Wherever applicable, the evaluation committee shall rank the proposals having passed the

applicable thresholds, according to:

(a) the evaluation scores;

(b) their contribution to the achievement of specific policy objectives, including the

constitution of a consistent portfolio of projects for EIC pathfinder activities, missions

and in other duly justified cases as set out in the work programme **adopted by the**

**Commission** in detail.

For EIC activities, missions and in other duly justified cases as set out in the work programme

**adopted by the Commission** in detail, the evaluation committee may also propose

adjustments to the proposals in as far as needed for the consistency of the portfolio approach.

These adjustments shall be in conformity with the conditions for participation and comply

with the principle of equal treatment. The Programme Committee shall be informed of such

cases.

14501/18 SD/CF/MI/lv 41

# ANNEX ECOMP.3.C. EN

3. In accordance with Article 200 (7) of the Financial Regulation, applicants shall receive

feedback at all stages of the evaluation and, where applicable, the reasons for rejection.

4. Legal entities established in low R&I performing Member States who have participated

successfully in the component "Widening Participation and Sharing Excellence" shall receive,

upon request, a record of this participation which may accompany proposals to Pillar II of the

Programme which they coordinate.

_Article 27_

**Evaluation review procedure**

1. An applicant may request an evaluation review if it considers that the applicable evaluation

procedure has not been correctly applied to its proposal **[25]** .

2. An evaluation review applies only to the procedural aspects of the evaluation, not to the

evaluation of the merits of the proposal.

2a. An evaluation review committee shall provide an opinion on the procedural aspects, and shall

be chaired by an official of the Commission or of the relevant funding body, from a

department other than that responsible for the call for proposals. The committee may

recommend one of the following:

(a) re-evaluation of the proposal primarily by evaluators not involved in the previous

evaluation;

(b) confirmation of the initial evaluation.

3. An evaluation review shall not delay the selection process for proposals that are not the

subject of review.

**25** The procedure will be explained in a document published before the start of the evaluation

process.

14501/18 SD/CF/MI/lv 42

# ANNEX ECOMP.3.C. EN

_Article 28_

**Time to grant**

1. By derogation from the first subparagraph of Article 194(2) of the Financial Regulation, the

following periods shall apply:

(a) for informing all applicants of the outcome of the evaluation of their application, a

maximum period of five months from the final date for submission of complete

proposals;

(b) for signing grant agreements with applicants, a maximum period of eight months from

the final date for submission of complete proposals.

2. The work programme may establish shorter periods.

3. In addition to the exceptions laid down in the second subparagraph of Article 194(2) of the

Financial Regulation, the periods referred to in paragraph 1 may be exceeded for actions of

the ERC, for missions and when actions are submitted to an ethics or security assessment.

_Article 29_

**Implementation of the grant**

1. If a beneficiary fails to comply with its obligations regarding the technical implementation of

the action, the other beneficiaries shall comply with those obligations without any additional

Union funding, unless they are expressly relieved of that obligation. The financial

responsibility of each beneficiary shall be limited to its own debt subject to the provisions

relating to the Mutual Insurance Mechanism.

2. The grant agreement may establish milestones and related pre-financing installments. If

milestones are not met, the action may be suspended, amended or if duly justified, be

terminated.

14501/18 SD/CF/MI/lv 43

# ANNEX ECOMP.3.C. EN

3. The action may also be terminated where expected results have lost their relevance for the

Union due to scientific or technological reasons, or in the case of the EIC accelearator also

due to economic reasons.

_Article 29a_

**Model Grant Agreement**

1. The Commission shall, in close cooperation with the Member States, draw up model grant

agreements between the Commission or the relevant funding body and the beneficiaries in

accordance with this Regulation. If a significant modification of a model grant agreement is

required, the Commission shall, in close cooperation with the Member States, revise it as

appropriate.

2. The grant agreement shall establish the rights and obligations of the beneficiaries and of either

the Commission or the relevant funding body in compliance with this Regulation. It shall also

establish the rights and obligations of legal entities which become beneficiaries during the

implementation of the action, as well as the role and tasks of a consortium coordinator.

_Article 30_

**Funding rates**

1. A single funding rate per action shall apply for all activities it funds. The maximum rate shall

be fixed in the work programme.

2. The Programme may reimburse up to 100 % of total eligible costs of an action, except for:

(a) innovation actions: up to 70 % of the total eligible costs, except for non-profit legal

entities where the Programme may reimburse up to 100 % of the total eligible costs;

(b) programme co-fund actions: at least 30 % of the total eligible costs, and in identified

and duly justified cases up to 70 %.

14501/18 SD/CF/MI/lv 44

# ANNEX ECOMP.3.C. EN

3. The funding rates determined in this Article shall also apply for actions where flat rate, unit or

lump sum financing is fixed for the whole or part of the action.

_Article 31_

**Indirect costs**

1. Indirect eligible costs shall be determined by applying a flat rate of 25 % of the total direct

eligible costs, excluding direct eligible costs for subcontracting, financial support to third

parties and any unit costs or lump sums which include indirect costs.

Where appropriate, indirect costs included in unit costs or lump sums shall be calculated using

the flat rate set out in paragraph 1, except for unit costs for internally invoiced goods and

services which shall be calculated on the basis of actual costs, in accordance with the

beneficiaries' usual costs accounting practices.

2. However, if provided for in the work programme, indirect costs may be declared in the form

of a lump sum or unit costs.

_Article 32_

**Eligible costs**

1. In addition to the criteria set out in Article 186 of the Financial Regulation, for beneficiaries

with project-based remuneration, costs of personnel are eligible up to the remuneration that

the person would be paid for work in similar projects funded by national schemes including

social security charges and other costs linked to the remuneration of personnel assigned to the

action, arising from national law or from the employment contract.

Project-based remuneration means remuneration that is linked to the participation of a person

in projects, is part of the beneficiary’s usual remuneration practices and is paid in a consistent

manner.

14501/18 SD/CF/MI/lv 45

# ANNEX ECOMP.3.C. EN

2. By derogation from Article 190(1) of the Financial Regulation, costs of resources made

available by third parties by means of in-kind contributions shall be eligible, up to the direct

eligible costs of the third party.

3. By derogation from Article 192 of the Financial Regulation, income generated by the

exploitation of the results shall not be considered as receipts of the action.

4. By derogation from Article 203(4) of the Financial Regulation, a certificate on the financial

statements shall be mandatory at payment of the balance, if the amount claimed as actual

costs and unit costs calculated in accordance with usual cost accounting practices is equal to

or greater than EUR 325 000.

_Article 33_

**Mutual Insurance Mechanism**

1. A Mutual Insurance Mechanism (the 'Mechanism') is hereby established which shall replace

and succeed the fund set up in accordance with Article 38 of Regulation (EC) No 1290/2013.

The Mechanism shall cover the risk associated with non-recovery of sums due by the

beneficiaries:

(a) to the Commission under Decision No 1982/2006/EC,

(b) to the Commission and Union bodies under "Horizon 2020",

(c) to the Commission and funding bodies under the Programme.

The coverage of the risk regarding funding bodies referred to in point (c) of the first

subparagraph may be implemented through an indirect coverage system set out in the

applicable agreement and taking into account the nature of the funding body.

2. The Mechanism shall be managed by the Union, represented by the Commission acting as

executive agent. The Commission shall set up specific rules for the operation of the

Mechanism.

14501/18 SD/CF/MI/lv 46

# ANNEX ECOMP.3.C. EN

3. Beneficiaries shall make a contribution of 5 % of the Union funding for the action. On the

basis of periodic evaluations, this contribution may be raised by the Commission up to 8% or

may be reduced under 5%. The beneficiaries' contribution to the Mechanism shall be offset

from the initial pre-financing and be paid to the Mechanism on behalf of the beneficiaries, and

shall in no circumstance exceed the amount of the initial pre-financing.

4. The contribution of the beneficiaries shall be returned at the payment of the balance.

5. Any financial return generated by the Mechanism shall be added to the Mechanism. If the

return is insufficient, the Mechanism shall not intervene and the Commission or funding body

shall recover directly from beneficiaries or third parties any amount owed.

6. The amounts recovered shall constitute revenue assigned to the Mechanism within the

meaning of Article 21(5) of the Financial Regulation. Once all grants whose risk is covered

directly or indirectly by the Mechanism are completed, any sums outstanding shall be

recovered by the Commission and entered into the budget of the Union, subject to decisions

of the legislative authority.

7. The Mechanism may be opened to beneficiaries of any other directly managed Union

programme. The Commission shall adopt modalities for participation of beneficiaries of other

programmes.

_Article 34_

**Ownership and protection**

1. Beneficiaries shall own the results they generate. They shall ensure that any rights of their

employees or any other parties in relation to the results can be exercised in a manner

compatible with the beneficiaries’ obligations in accordance with the terms and conditions

laid down in the grant agreement.

Two or more beneficiaries shall own results jointly if:

(a) they have jointly generated them; and

14501/18 SD/CF/MI/lv 47

# ANNEX ECOMP.3.C. EN

(b) it is not possible to:

(i) establish the respective contribution of each beneficiary,

or

(ii) separate them when applying for, obtaining or maintaining their protection.

The joint owners shall agree in writing on the allocation and terms of exercise of their joint

ownership. Unless otherwise agreed, each joint owner may grant non-exclusive licences to

third parties to exploit the jointly-owned results (without any right to sub-license), if the other

joint owners are given advance notice and fair and reasonable compensation. The joint owners

may agree in writing to apply another regime than joint ownership.

2. Beneficiaries having received Union funding shall adequately protect their results if

protection is possible and justified, taking into account all relevant considerations, including

the prospects for commercial exploitation. When deciding on protection, beneficiaries shall

also consider the legitimate interests of the other beneficiaries in the action.

_Article 35_

**Exploitation and dissemination**

1. Beneficiaries having received Union funding shall use their best efforts to exploit their results,

in particular in the Union and in the Associated Countries of the beneficiaries involved in the

action. Exploitation may be done directly by the beneficiaries or indirectly in particular

through the transfer and licensing of results in accordance with Article 36.

The work programme may provide for additional exploitation obligations.

If despite a beneficiary's best efforts to exploit its results directly or indirectly no exploitation

takes place within a given period as identified in the grant agreement, the beneficiary shall use

an appropriate online platform as identified in the grant agreement to find interested parties to

exploit those results. If justified on the basis of a request of the beneficiary, this obligation

may be waived.

14501/18 SD/CF/MI/lv 48

# ANNEX ECOMP.3.C. EN

2. Subject to any restrictions due to the protection of intellectual property, security rules or

legitimate interests, beneficiaries shall disseminate their results as soon as possible.

The work programme may provide for additional dissemination obligations.

3. Beneficiaries shall ensure that open access to scientific publications applies under the terms

and conditions laid down in the grant agreement. In particular, the beneficiaries shall ensure

that they or the authors retain sufficient intellectual property rights to comply with their open

access requirements.

Open access to research data shall be the general rule under the terms and conditions laid

down in the grant agreement, but exceptions shall apply if justified, taking into consideration

the legitimate interests of the beneficiaries including commercial exploitation and any other

constraints, such as data protection rules, security rules or intellectual property rights.

The work programme may provide for additional obligations to adhere to open science

practices.

4. Beneficiaries shall manage all research data in line with the FAIR principles and in

accordance with the terms and conditions laid down in the grant agreement and shall establish

a Data Management Plan.

The work programme may provide for additional obligations to use the European Open

Science Cloud (EOSC) for storing and giving access to research data.

5. Beneficiaries that intend to disseminate their results shall give advance notice to the other

beneficiaries in the action. Any other beneficiary may object if it can show that the intended

dissemination would significantly harm its legitimate interests in relation to its results or

background. In such cases, the dissemination may not take place unless appropriate steps are

taken to safeguard these legitimate interests.

14501/18 SD/CF/MI/lv 49

# ANNEX ECOMP.3.C. EN

6. Unless the work programme provides otherwise, proposals shall include a plan for the

exploitation and dissemination of the results. If the expected exploitation entails developing,

creating, manufacturing and marketing a product or process, or in creating and providing a

service, the plan shall include a strategy for such exploitation. If the plan provides for

exploitation primarily in non-associated third countries, the legal entities shall explain how

that exploitation is still in the Union interest.

The beneficiaries shall further develop the plan during and after the end of the action.

7. For the purposes of monitoring and dissemination by the Commission or funding body, the

beneficiaries shall provide any requested information regarding the exploitation and

dissemination of their results, in accordance with the conditions laid down in the grant

agreement. Subject to the legitimate interests of the beneficiaries, such information shall be

made publicly available.

_Article 36_

**Transfer and licensing**

1. Beneficiaries may transfer ownership of their results. They shall ensure that their obligations

also apply to the new owner and that the latter has the obligation to pass them on in any

subsequent transfer.

2. Unless agreed otherwise in writing for specifically-identified third parties or unless

impossible under applicable law, beneficiaries that intend to transfer ownership of results

shall give advance notice to any other beneficiary that still has access rights to the results. The

notification must include sufficient information on the new owner to enable a beneficiary to

assess the effects on its access rights.

Unless agreed otherwise in writing for specifically-identified third parties, a beneficiary may

object to the transfer if it can show that the transfer would adversely affect its access rights. In

this case, the transfer may not take place until agreement has been reached between the

beneficiaries concerned.

14501/18 SD/CF/MI/lv 50

# ANNEX ECOMP.3.C. EN

3. Beneficiaries may grant licences to their results or otherwise give the right to exploit them,

including on an exclusive basis, if this does not affect compliance with their obligations.

Exclusive licences for results may be granted subject to consent by all the other beneficiaries

concerned that they will waive their access rights thereto.

4. Where this is justified, the grant agreement shall lay down the right to object to transfers of

ownership of results, or to grants of an exclusive licence regarding results, if:

(a) the beneficiaries generating the results have received Union funding;

(b) the transfer or licence is to a legal entity established in a non-associated third country;

and

(c) the transfer or licence is not in line with Union interests.

If the right to object applies, the beneficiary shall give advance notice. The right to object may

be waived in writing regarding transfers or grants to specifically identified legal entities if

measures safeguarding Union interests are in place.

_Article 37_

**Access rights**

1. The following access rights principles shall apply:

(a) a request to exercise access rights or any waiving of access rights shall be made in

writing;

(b) unless otherwise agreed with the grantor, access rights do not include the right to sub

license;

(c) the beneficiaries shall inform each other before their accession to the grant agreement of

any restrictions to granting access to their background;

(d) if a beneficiary is no longer involved in an action, it shall not affect its obligations to

grant access;

14501/18 SD/CF/MI/lv 51

# ANNEX ECOMP.3.C. EN

(e) if a beneficiary defaults on its obligations, the beneficiaries may agree that it no longer

has access rights.

2. Beneficiaries shall grant access to:

(a) their results on a royalty-free basis to any other beneficiary in the action that needs it to

implement its own tasks;

(b) their background to any other beneficiary in the action that needs it to implement its

own tasks, subject to any restrictions referred to in paragraph 1(c); that access shall be

granted on a royalty-free basis, unless otherwise agreed by the beneficiaries before their

accession to the grant agreement;

(c) their results and, subject to any restrictions referred to in paragraph 1(c), to their

background to any other beneficiary in the action that needs it to exploit its own results;

that access shall be granted under fair and reasonable conditions to be agreed upon.

3. Unless otherwise agreed by the beneficiaries, they shall also grant access to their results and,

subject to any restrictions referred to in paragraph 1(c), to their background to a legal entity

that:

(a) is established in a Member State or associated country;

(b) is under the direct or indirect control of another beneficiary, or is under the same direct

or indirect control as that beneficiary, or is directly or indirectly controlling that

beneficiary; and

(c) needs the access to exploit the results of that beneficiary, in accordance with the

beneficiary's exploitation obligation.

Access shall be granted under fair and reasonable conditions to be agreed upon.

4. A request for access for exploitation purposes may be made up to one year after the end of the

action, unless the beneficiaries agree on a different time-limit.

14501/18 SD/CF/MI/lv 52

# ANNEX ECOMP.3.C. EN

5. Beneficiaries having received Union funding shall grant access to their results on a royalty

free basis to the Union institutions, bodies, offices or agencies for developing, implementing

and monitoring Union policies or programmes. Access shall be limited to non-commercial

and non-competitive use.

In actions under the cluster ‘Civil security for Society’, beneficiaries having received Union

funding shall also grant access to their results on a royalty-free basis to Member States'

national authorities, for developing, implementing and monitoring their policies or

programmes in that area. Access shall be limited to non-commercial and non-competitive use

and shall be granted upon bilateral agreement defining specific conditions aimed at ensuring

that those rights will be used only for the intended purpose and that appropriate

confidentiality obligations will be in place. The requesting Member State, Union institution,

body, office or agency shall notify all Member States of such requests.

6. The work programme may provide for additional access rights.

_Article 38_

**Specific provisions on exploitation and dissemination**

Specific rules on ownership, exploitation and dissemination, transfer and licensing as well as access

rights may apply for ERC actions, training and mobility actions, pre-commercial procurement

actions, public procurement of innovative solutions actions, programme co-fund actions and

coordination and support actions.

These specific rules shall be set out in the grant agreement and shall not change the obligations on

open access.

14501/18 SD/CF/MI/lv 53

# ANNEX ECOMP.3.C. EN

_CHAPTER III_

_**Prizes**_

_Article 39_

**Prizes**

1. Prizes under the Programme shall be awarded and managed in accordance with Title IX of the

Financial Regulation, unless otherwise specified in this Chapter.

2. Any legal entity, regardless of its place of establishment, may participate in a contest, unless

otherwise provided in the work programme or rules of contests.

3. The Commission or funding body may organise prizes with:

(a) other Union bodies;

(b) third countries, including their scientific and technological organisations or agencies;

(c) international organisations; or

(d) non-profit legal entities.

4. The work programme or rules of contest may include obligations regarding communication,

exploitation and dissemination.

14501/18 SD/CF/MI/lv 54

# ANNEX ECOMP.3.C. EN

_CHAPTER IV_

_**Procurement**_

_Article 40_

**Procurement**

1. Procurement under the Programme shall be awarded and managed in accordance with Title

VII of the Financial Regulation, unless otherwise specified in this Chapter.

2. Procurement may also take the form of pre-commercial procurement or procurement of

innovative solutions carried out by the Commission or the funding body on its own behalf or

jointly with contracting authorities from Member States and associated countries. In this case,

the rules set out in Article 22 shall apply.

_CHAPTER V_

_**Blending operations and blended finance**_

_Article 41_

**Blending operations**

Blending operations decided under this Programme shall be implemented in accordance with the

InvestEU Programme and Title X of the Financial Regulation.

_Article 42_

**Horizon Europe and EIC Blended finance**

1. The grant and reimbursable advance components of Horizon Europe or EIC blended finance

shall be subject to Articles 30 to 33.

14501/18 SD/CF/MI/lv 55

# ANNEX ECOMP.3.C. EN

2. EIC blended finance shall be implemented in accordance with Article 43. The support under

the EIC blended finance may be granted until the action can be financed as a blending

operation or as a financing and investment operation fully covered by the EU guarantee under

InvestEU. By derogation from Article 209 of the Financial Regulation, the conditions laid

down in paragraph (2) and, in particular, paragraph (a) and (d), do not apply at the time of the

award of EIC blended finance.

3. Horizon Europe blended finance may be awarded to a programme co-fund where a joint

programme of Member States and associated countries provides for the deployment of

financial instruments in support of selected actions. The evaluation and selection of such

actions shall be made in accordance with Articles 19, 20, 23, 24, 25 and 26. The

implementation modalities of the Horizon Europe blended finance shall comply with Article

29, by analogy Article 43(9) and with additional conditions defined by the work programme.

4. Repayments including reimbursed advances and revenues of Horizon Europe and EIC

blended finance shall be considered as internal assigned revenues in accordance with Articles

21(3)(f) and 21(4) of Financial Regulation.

5. Horizon Europe and EIC blended finance shall be provided in a manner that does not distort

competition in the internal market.

_Article 43_

**EIC’s Accelerator**

1. While EIC pathfinder will provide grants to projects implemented by consortia or

monobeneficiaries, the EIC's Accelerator shall predominantly provide blended finance

support only for monobeneficiaries. Under certain conditions, detailed in decision (specific

programme), it may also provide grant-only and equity-only supports.

14501/18 SD/CF/MI/lv 56

# ANNEX ECOMP.3.C. EN

Grant only support under the EIC Accelerator shall only be provided under the following

cumulative conditions:

a) the project shall include information on the capacities and willingness of the applicant

to scale-up;

b) the beneficiary can only be a start-up or an SME;

c) a grant-only support under the EIC Accelerator can only be provided once to a

beneficiary during Horizon Europe for a maximum of EUR 2.5 million;

d) the share of the EIC Accelerator budget dedicated to grant-only support cannot exceed

more than [XY%].

Equity-only support can only be provided to a beneficiary of a grant-only support.

1a. The beneficiary of the EIC Accelerator shall be a legal entity qualifying as a start-up, an SME

or in exceptional cases as a small mid-cap **[26]**, established in a Member State or associated

country. The proposal may be submitted either by the beneficiary, or, subject to the prior

agreement by the beneficiary, by one or more natural persons or legal entities intending to

establish or support that beneficiary. In the latter case, the funding agreement will be signed

with the beneficiary only.

2. A single award decision shall cover and provide funding for all forms of Union contribution

provided under EIC blended finance.

3. Proposals shall be evaluated on their individual merit by external independent experts and

selected in the context of a continuously open call with cut-off dates, based on Articles 24 to

26, subject to paragraph 4.

**26** As defined in Article 2.

14501/18 SD/CF/MI/lv 57

# ANNEX ECOMP.3.C. EN

4. Award criteria shall be:

(a) excellence;

(b) impact;

(c) the level of risk of the action that would prevent investments, the quality and efficiency

of the implementation, and the need for Union support.

5. With the agreement of applicants concerned, the Commission or funding bodies implementing

Horizon Europe may directly submit for evaluation under the last evaluation criterion a

proposal for an innovation and market deployment action which already fulfils the first two

criteria, subject to the following cumulative conditions:

(a) the proposal shall stem from any other action funded by Horizon 2020, from this

Programme;

(b) be based on a previous project review not longer than 2 years ago assessing the

excellence and the impact of the proposal and subject to conditions and processes

further detailed in the work programme.

6. A Seal of Excellence may be awarded subject to the following cumulative conditions:

(a) the beneficiary is a start-up, an SME or a small mid-cap,

(b) the proposal was eligible and has passed applicable thresholds for the first two award

criteria referred to in paragraph 4,

(c) for those activities that would be eligible under an innovation action.

14501/18 SD/CF/MI/lv 58

# ANNEX ECOMP.3.C. EN

7. For a proposal having passed the evaluation, external independent experts shall propose a

corresponding EIC Accelerator support, based on the risk incurred and the resources and time

necessary to bring and deploy the innovation to the market.

The Commission may reject a proposal retained by external independent experts for justified

reasons, including compliance with the objectives of Union policies. The Programme

Committee shall be informed of the reasons for such rejections.

8. The grant or the reimbursable advance component of the EIC Accelerator support shall not

exceed 70% of the total eligible costs of the selected innovation action.

9. Implementation modalities of the equity and repayable support components of the EIC

Accelerator support shall be detailed in Decision [Specific programme].

10. The contract for the selected action shall establish specific milestones and the corresponding

pre-financing and payments by instalments of the EIC Accelerator support.

In the case of EIC blended finance, activities corresponding to an innovation action may be

launched and first pre-financing of the grant or the reimbursable advance paid, prior to the

implementation of other components of the awarded EIC blended finance. The

implementation of those components shall be subject to the achievement of specific

milestones established in the contract.

11. In accordance with the contract, the action shall be suspended, amended or if duly justified be

terminated if milestones are not met. It may also be terminated where the expected market

deployment cannot be met.

In exceptional cases and upon advice by the EIC board, the Commission may decide to

increase the EIC Accelerator support subject to a project review by external independent

experts. The Programme Committee shall be informed of such cases.

14501/18 SD/CF/MI/lv 59

# ANNEX ECOMP.3.C. EN

_Chapter VI_

_**Experts**_

_Article 44_

**Appointment of external independent experts**

1. External independent experts shall be identified and selected on the basis of calls for

applications from individuals and calls addressed to relevant organisations such as research

agencies, research institutions, universities, standardisation organisations, civil society

organisations or enterprises with a view to establishing a database of candidates. By

derogation from Artcle 237(3) of the Financial Regulation, the Commission or the relevant

funding body may, if deemed appropriate and in duly justified cases, select in a transparent

manner any individual expert with the appropriate skills not included in the database.

2. In accordance with Article 237(2) and 237(3) of the Financial Regulation, external

independent experts shall be remunerated based on standard conditions. If justified, an

appropriate level of remuneration beyond the standard conditions based on relevant market

standards, especially for specific high level experts, may be granted.

3. In addition to paragraphs 2 and 3 of Article 38 of the Financial Regulation, the names of

external independent experts evaluating grant applications, who are appointed in a personal

capacity shall be published, together with their area of expertise, at least once a year on the

internet site of the Commission or the funding body. Such information shall be collected,

processed and published in accordance with the EU data protection rules.

4. When appointing external independent experts, the Commission or the relevant funding body

shall take appropriate measures to seek a balanced composition within the expert groups and

evaluation panels in terms of skills, experience, knowledge, including in the field of SSH,

geographical diversity and gender, taking into account the situation in the field of the action.

14501/18 SD/CF/MI/lv 60

# ANNEX ECOMP.3.C. EN

TITLE III

**PROGRAMME MONITORING, COMMUNICATION, EVALUATION AND CONTROL**

_Article 45_

**Monitoring and reporting**

1. Indicators to report on progress of the Programme towards the achievement of the objectives

established in Article 3 are set in Annex V along impact pathways.

2. The Commission is empowered to adopt delegated acts in accordance with Article 50

concerning amendments to Annex V to supplement or amend the impact pathway indicators,

where considered necessary, and set baselines and targets.

3. The performance reporting system shall ensure that data for monitoring programme

implementation and results are collected efficiently, effectively and in a timely manner. To

that end, proportionate reporting requirements shall be imposed on recipients of Union funds

and (where relevant) Member States **[27]** .

_Article 46_

**Information, communication, publicity and dissemination and exploitation**

1. The recipients of Union funding shall acknowledge the origin and ensure the visibility of the

Union funding (in particular when promoting the actions and their results) by providing

coherent, effective and proportionate targeted information to multiple audiences, including the

media and the public.

**27** Provisions for the monitoring of the European Partnerships are set out in the Annex III of the
Regulation.

14501/18 SD/CF/MI/lv 61

# ANNEX ECOMP.3.C. EN

2. The Commission shall implement information and communication actions relating to the

Programme, and its actions and results. Evidence-based matchmaking services informed by

analytics and network affinities shall be provided to interested entities in order to form

consortia for collaborative projects, with particular attention to identifying networking

opportunities for legal entities from low R&I performing Member States. On the basis of such

analysis, targeted match-making events may be organised in function of specific calls for

proposals. Financial resources allocated to the Programme shall also contribute to the

corporate communication of the political priorities of the Union, as far as they are related to

the objectives referred to in Article 3.

3. The Commission shall also establish a dissemination and exploitation strategy for increasing

the availability and diffusion of the Programme’s research and innovation results and

knowledge to accelerate exploitation towards market uptake and boost the impact of the

Programme. Financial resources allocated to the Programme shall also contribute to the

corporate communication of the political priorities of the Union as well as information,

communication, publicity, dissemination and exploitation activities as far as they are related

to the objectives referred to in Article 3.

_Article 47_

**Programme evaluation**

1. Programme evaluations shall be carried out in a timely manner to feed into the decision

making process on the programme, its successor and other initiatives relevant to research and

innovation.

2. The interim evaluation of the Programme shall be carried out with the assistance of

independent experts selected on the basis of a transparent process once there is sufficient

information available about the implementation of the Programme, but no later than four

years after the start of the programme implementation. It shall include an assessment of the

long-term impact of previous Framework Programmes and shall form the basis to adjust

programme implementation, as appropriate.

14501/18 SD/CF/MI/lv 62

# ANNEX ECOMP.3.C. EN

3. At the end of the implementation of the Programme, but no later than four years after the end

of the period specified in Article 1, a final evaluation of the Programme shall be completed by

the Commission. It shall include an assessment of the long-term impact of previous

Framework Programmes.

4. The Commission shall communicate the conclusions of the evaluations accompanied by its

observations, to the European Parliament, the Council, the European Economic and Social

Committee and the Committee of the Regions.

_Article 48_

**Audits**

1. The control system for the Programme shall ensure an appropriate balance between trust and

control, taking into account administrative and other costs of controls at all levels, especially

for beneficiaries.

2. The audit strategy for the Programme shall be based on the financial audit of a representative

sample of expenditure across the Programme as a whole. The representative sample shall be

complemented by a selection based on an assessment of the risks related to expenditure.

Actions that receive joint funding from different Union programmes shall be audited only

once, covering all involved programmes and their respective applicable rules.

14501/18 SD/CF/MI/lv 63

# ANNEX ECOMP.3.C. EN

3. In addition, the Commission or funding body may rely on combined systems reviews at

beneficiary level. These combined reviews shall be optional for certain types of beneficiaries

and shall consist in a systems and process audit, complemented by an audit of transactions,

carried out by a competent independent auditor qualified to carry out statutory audits of

accounting documents in accordance with Directive 2006/43/EC **[28]** . They may be used by the

Commission or funding body to determine overall assurance on the sound financial

management of expenditure and for reconsideration of the level of ex-post audits and

certificates on financial statements.

4. In accordance with Article 127 of the Financial Regulation, the Commission or funding body

may rely on audits on the use of Union contributions carried out by other persons or entities,

including by other than those mandated by the Union Institutions or bodies.

5. Audits may be carried out up to two years after the payment of the balance.

_Article 49_

**Protection of financial interests of the Union**

1. The Commission or its representatives, and the Court of Auditors, shall have the power of

audit or, in the case of international organisations, the power of verification in accordance

with agreements reached with them, on the basis of documents and on-the-spot, over all grant

beneficiaries, contractors and subcontractors who have received Union funds under this

Regulation.

**28** Directive 2006/43/EC of the European Parliament and of the Council of 17 May 2006 on
statutory audits of annual accounts and consolidated accounts, amending Council Directive
78/660/EEC and 83/349/EEC and repealing Council Directive 84/253/EEC (OJ L 157,
9.6.2006, p. 87)

14501/18 SD/CF/MI/lv 64

# ANNEX ECOMP.3.C. EN

2. The European Anti-Fraud Office (OLAF) may carry out administrative 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 and Council 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 Union funding or budgetary guarantees

under this Regulation.

3. Competent authorities of third countries and international organisations may also be required

to cooperate with the European Public Prosecutor's Office (EPPO), in accordance with Mutual

Legal Assistance Agreements, when it carries out investigations into criminal offences falling

within its competence in accordance with Regulation (EU) 2017/1939.

4. Without prejudice to paragraphs 1 and 2, cooperation agreements with third countries and

with international organisations, contracts, grant agreements and other legal commitments, as

well as agreements establishing a budgetary guarantee, resulting from the implementation of

this Regulation shall contain provisions expressly empowering the Commission, the Court of

Auditors and OLAF to conduct such audits, on-the-spot checks and inspections, according to

their respective competences. This shall include provisions to ensure that any third parties

involved in the implementation of Union funds or of a financing operation supported, in

whole or in part, by a budgetary guarantee grant equivalent rights.

_Article 50_

**Exercise of the delegation**

1. The power to adopt delegated acts is conferred on the Commission subject to the conditions

laid down in this Article.

2. The power to adopt delegated acts referred to in Article 45(2) shall be conferred on the

Commission until 31 December 2028.

14501/18 SD/CF/MI/lv 65

# ANNEX ECOMP.3.C. EN

3. The delegation of power referred to in Article 45(2) may be revoked at any time by the

European Parliament or by the Council. A decision to revoke shall put an end to the

delegation of power specified in that decision. It shall take effect the day following the

publication of the decision in the _Official Journal_ of the European Union or at a later date

specified therein. It shall not affect the validity of any delegated acts already in force.

4. Before adopting a delegated act, the Commission shall consult experts designated by each

Member State in accordance with the principles laid down in the Interinstitutional Agreement

of 13 April 2016 on Better Law-Making.

5. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the

European Parliament and to the Council.

6. A delegated act adopted pursuant to Article 45(2) shall enter into force if no objection has

been expressed either by the European Parliament or by the Council within a period of two

months of notification of that act to the European Parliament and the Council or if, before the

expiry of that period, the European Parliament and the Council have both informed the

Commission that they will not object. That period shall be extended by two months at the

initiative of the European Parliament or of the Council.

14501/18 SD/CF/MI/lv 66

# ANNEX ECOMP.3.C. EN

TITLE IV

**TRANSITIONAL AND FINAL PROVISIONS**

_Article 51_

**Repeal**

Regulation (EU) No 1291/2013 and Regulation (EU) No 1290/2013 are repealed with effect from 1

January 2021.

_Article 52_

**Transitional provisions**

1. This Regulation shall not affect the continuation or modification of the actions concerned,

under Regulation (EU) No 1291/2013 and Regulation (EU) No 1290/2013, which shall

continue to apply to those actions until their closure. Work plans and actions provided for in

work plans adopted under Regulation (EU) No1290/2013 and under the corresponding

funding bodies' basic acts shall also continue to be governed by Regulation (EU)

No1290/2013 and those basic acts until their completion.

2. The financial envelope for the Programme may also cover technical and administrative

assistance expenses necessary to ensure the transition between the Programme and the

measures adopted under its predecessor Regulation (EU) No 1291/2013.

14501/18 SD/CF/MI/lv 67

# ANNEX ECOMP.3.C. EN

_Article 53_

**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 all Member States.

Done at Brussels,

_For the European Parliament_ _For the Council_

The President The President

14501/18 SD/CF/MI/lv 68

# ANNEX ECOMP.3.C. EN

**ANNEX I**

**BROAD LINES OF ACTIVITIES**

The general and specific objectives set out in Article 3 shall be pursued across the Programme,

through the areas of intervention and the broad lines of activity described in this Annex, as well as

in Annex I to the Specific Programme.

**(1) Pillar I 'Excellent Science'**

Through the following activities, this pillar shall, in line with Article 4, promote scientific

excellence, attract the best talent to Europe, provide appropriate support to early stage researchers

and support the creation and diffusion of scientific excellence, high-quality knowledge,

methodologies and skills, technologies and solutions to global social, environmental and economic

challenges. It shall also contribute to the other Programme's specific objectives as described in

Article 3.

(a) European Research Council: Providing attractive and flexible funding to enable talented and

creative individual researchers and their teams to pursue the most promising avenues at the

frontier of science, regardless of their nationality and country of origin and on the basis of

competition based solely on the criterion of excellence.

Area of intervention: Frontier science

(b) Marie Skłodowska-Curie Actions: Equipping researchers with new knowledge and skills

through mobility and exposure across borders, sectors and disciplines, enhancing training and

career development systems as well as structuring and improving institutional and national

recruitment, taking into account the European Charter for Researchers and Code of Conduct

for the recruitment of researchers; in so doing, the Marie Skłodowska-Curie Actions help to

lay the foundations of Europe's excellent research landscape, where relevant contributing to

boosting jobs, growth, and investment, and solving current and future societal challenges.

14501/18 SD/CF/MI/lv 69

# ANNEX ECOMP.3.C. EN

_Areas of intervention:_ Nurturing excellence through mobility of researchers across borders,

sectors and disciplines; fostering new skills through excellent training of researchers;

strengthening human resources and skills development across the European Research Area,

including support for researchers to return to their country of origin within and to the Union;

improving and facilitating synergies; promoting public outreach.

(c) Research Infrastructures: Endowing Europe with world-class sustainable research

infrastructures which are open, and accessible to the best researchers from Europe and

beyond. Encouraging the use of existing research infrastructures, including those financed

from ESIF. In so doing the potential of the research infrastructure to support scientific

advance and innovation, and to enable open and excellent science, following the FAIR

principles, will be enhanced, alongside activities in related Union policy and international

cooperation.

_Areas of intervention:_ Consolidating and developing the landscape of European research

infrastructures; Opening, integrating and interconnecting research infrastructures; Reinforcing

European research infrastructure policy and international cooperation; enhancing European

research infrastructures' role and activities for innovation and training.

**(2) Pillar II 'Global Challenges and European Industrial Competitiveness'**

Through the following activities, this pillar shall, in line with Article 4, support the creation and

better diffusion of high-quality new knowledge, technologies and sustainable solutions, reinforce

the competitiveness of European industry, strengthen the impact of research and innovation in

developing, supporting and implementing Union policies, and support the uptake of innovative

solutions in industry, notably in SMEs and start-ups, and society to address global challenges. It

shall also contribute to the other Programme's specific objectives as described in Article 3.

SSH shall be fully integrated across all clusters, including specific and dedicated activities.

14501/18 SD/CF/MI/lv 70

# ANNEX ECOMP.3.C. EN

To maximise impact flexibility and synergies, research and innovation activities shall be organised

in six clusters, which individually and together will incentivise interdisciplinary, cross-sectoral,

cross-policy, cross-border and international cooperation. Activites from a broad range of TRLs,

including lower TRLs will be covered in this pillar of Horizon Europe.

Each cluster contributes towards several SDGs; and many SDGs are supported by more than one

cluster.

The R&I activities shall be implemented in and across the following clusters:

(a) Cluster 'Health': Improving and protecting the health and well-being of citizens at all ages, by

generating new knowledge, developing innovative solutions, and ensuring to integrate where

relevant a gender perspective to prevent, diagnose, monitor, treat and cure diseases; mitigating

health risks, protecting populations and promoting good health and well-being, also in the

work place; making public health systems more cost-effective, equitable and sustainable;

preventing poverty-related diseases; and supporting and enabling patients' participation and

self-management.

_Areas of intervention_ : Health throughout the life course; Environmental and social health

determinants; Non-communicable and rare diseases; Infectious diseases, including poverty

related and neglected diseases; Tools, technologies and digital solutions for health and care,

including personalised medicine; Health care systems.

(b) Cluster 'Culture and Inclusive Society': Strengthening democratic values, including rule of

law and fundamental rights, safeguarding our cultural heritage, and promoting socio

economic transformations that contribute to inclusion and growth, including migration

management and integration of migrants.

_Areas of intervention_ : Governance and democracy; Cultural heritage; Social and economic

transformations.

14501/18 SD/CF/MI/lv 71

# ANNEX ECOMP.3.C. EN

(c) Cluster ‘Civil Security for Society’: Responding to the challenges arising from persistent

security threats, including cybercrime, as well as natural and man-made disasters.

_Areas of intervention:_ Disaster-resilient societies; Protection and security; Cybersecurity.

(d) Cluster 'Digital, Industry and Space': Reinforcing capacities and securing Europe's

sovereignty in key enabling technologies for digitisation and production, and in space

technology, all along the value chain, to build a competitive, digital, low-carbon and circular

industry; ensure a sustainable supply of raw materials; develop advanced materials and

provide the basis for advances and innovation in global societal challenges.

_Areas of intervention_ : Manufacturing technologies; Key digital technologies; Emerging

enabling technologies; Advanced materials; Artificial intelligence and robotics; Next

generation internet; Advanced computing and Big Data; Circular industries; Low carbon and

clean industries; Space, including earth observation.

(e) Cluster 'Climate and Energy': Fighting climate change by better understanding its causes,

evolution, risks, impacts and opportunities, by making the energy sector more climate and

environment-friendly, more efficient and competitive, smarter, safer and more resilient, by

improving resilience of the Union to external shocks and by adapting social behaviour in view

of the SDGs.

_Areas of intervention_ : Climate science and solutions; Energy supply; Energy systems and

grids; Buildings and industrial facilities in energy transition; Communities and cities;

Industrial competitiveness in transport; Energy storage.

(ee) Cluster 'Mobility': Making the transport sector, including vehicles, more climate and

environment-friendly, more efficient and competitive, smarter, safer and more resilient.

_Areas of intervention:_ Industrial Competitiveness in Transport; Clean, safe and accessible

transport and mobility; Smart mobility;

14501/18 SD/CF/MI/lv 72

# ANNEX ECOMP.3.C. EN

(f) Cluster 'Bioeconomy, Food, Natural Resources and Environment': Protecting the

environment, restoring, sustainably managing and using natural and biological resources from

land and sea to stop biodiversity erosion, to address food and nutrition security for all and the

transition to a low carbon, resource efficient and circular economy and sustainable

bioeconomy.

_Areas of intervention_ : Environmental observation; Biodiversity and natural resources;

Agriculture, forestry and rural areas; seas, oceans and inland waters; Food systems; Bio-based

innovation systems in the EU bioeconomy; Circular systems.

(g) Non-nuclear direct actions of the Joint Research Centre: Generating high-quality scientific

evidence for efficient and affordable good public policies. New initiatives and proposals for

EU legislation need transparent, comprehensive and balanced evidence to be sensibly

designed, whereas implementation of policies needs evidence to be measured and monitored.

The JRC will provide Union policies with independent scientific evidence and technical

support throughout the policy cycle. The JRC will focus its research on EU policy priorities.

_Areas of intervention:_ Health; inclusion, creativity and culture, civil security for society;

digital and industry; climate, energy and mobility; bioeconomy, food, natural resources and

environment; support to the functioning of the internal market and the economic governance

of the Union; support to Member States with implementation of legislation and development

of smart specialisation strategies; analytical tools and methods for policy making; knowledge

management; knowledge and technology transfer; support to science for policy platforms.

**(3) Pillar III 'Innovative Europe'**

Through the following activities, this pillar shall, in line with Article 4, foster all forms of

innovation, primarily within SMEs, by facilitating technological development, demonstration and

knowledge transfer, and strengthen deployment of innovative solutions . It shall also contribute to

the Programme's other specific objectives as described in Article 3. The EIC will be implemented

primarily through two types of actions: the Pathfinder, implemented mainly through collaborative

research, and the Accelerator.

14501/18 SD/CF/MI/lv 73

# ANNEX ECOMP.3.C. EN

(a) European Innovation Council: promoting all kinds of innovation with a strong focus on

breakthrough and disruptive innovation with scale-up potential at EU and international level.

_Areas of intervention_ : Pathfinder, supporting future and emerging breakthrough, market

creating and/or deep tech technologies; Accelerator, bridging the financing gap between late

stages of research and innovation activities and market take-up, to effectively deploy

breakthrough, market-creating innovation and scale up companies where the market does not

provide viable financing; additional activities such as prizes and fellowships, and business

added-value services.

(b) European innovation ecosystems

_Areas of intervention_ : Connecting, where relevant in cooperation with the EIT, with national

and regional innovation actors and supporting the implementation of joint cross-border

innovation programmes by Member States, Regions and associated countries, from the

exchange of practice and knowledge on innovation regulation to the enhancement of soft

skills for innovation to research and innovation actions, including open or user-led innovation,

to boost the effectiveness of the European innovation system. This should be implemented in

synergy inter alia with the ERDF support for innovation eco-systems and interregional

partnerships around smart specialisation topics.

(c) The European Institute of Innovation and Technology

_[Areas of intervention_ : Strengthen and extend sustainable innovation ecosystems across

Europe; Fostering the development of entrepreneurial and innovation skills in a lifelong

learning perspective and support the entrepreneurial transformation of EU universities; Bring

new solutions to global societal challenges to the market; Synergies and value added within

Horizon Europe; interlink with the EIC’s large-scale and high-risk support to promising

innovators, by supporting start-ups and scale-ups.].

14501/18 SD/CF/MI/lv 74

# ANNEX ECOMP.3.C. EN

**4) Part 'Widening participation and strengthening the European Research Area'**

Through the following activities, this part of the Programme shall, in line with Article 4, optimise

the Programme's delivery for widening participation and strengthening the European Research

Area. It shall aim to strengthen collaborative links across Europe and open up European R&I

networks, as well as exploit the potential of the Union's talent pool. In addition it shall contribute to

improve visibility of science in society. It shall support the Programme's specific objectives as

described in Article 3, including specific measures for increased participation of low R&I

performing Member States. While underpinning the entire Programme, this part will support

activities that contribute to attracting talent, fostering brain circulation and preventing brain drain, a

more knowledge-based and innovative and gender-equal Europe, at the front edge of global

competition, fostering transnational cooperation and thereby optimising national strengths and

potential across Europe in a well-performing European Research Area (ERA), where knowledge

and a highly skilled workforce circulate freely, where the outcomes of R&I are widely disseminated

to as well as understood and trusted by informed citizens and benefit society as a whole, and where

EU policy, notably R&I policy, is based on high quality scientific evidence.

It shall also support activities aimed at improving the quality of proposals from legal entities from

low R&I performing Member States, such as professional pre-proposal checks and advice, and

boosting the activities of National Contact Points to support international networking, as well as

activities aimed at supporting legal entities from low R&I performing Member States joining

already selected collaborative projects in which legal entities from such Member States are not

participating.

_Areas of intervention_ : Widening participation and sharing excellence, through Teaming, Twinning,

ERA-Chairs, COST and activities to foster brain circulation; Reforming and enhancing the

European R&I system, for example by supporting national research and innovation policy reform,

providing attractive career environments, and supporting gender and citizen science.

14501/18 SD/CF/MI/lv 75

# ANNEX ECOMP.3.C. EN

**ANNEX Ia**

**EUROPEAN** **INSTITUTE** **OF** **INNOVATION** **AND** **TECHNOLOGY** **(EIT)**

The following shall apply in the implementation of the programme activities of the EIT:

[1. Rationale

As the report of the High Level Group on maximising the impact of EU research and innovation

(the Lamy High Level Group) clearly states, the way forward is 'to educate for the future and invest

in people who will make the change'. In particular, European universities are called to stimulate

entrepreneurship, tear down disciplinary borders and institutionalise strong non-disciplinary

academia-industry collaborations. According to recent surveys, access to talented people is by far

the most important factor influencing the location choices of European founders of start-ups.

Entrepreneurship education and training opportunities play a key role in cultivating future

innovators and in developing the abilities of existing ones to grow their business to greater levels of

success. Access to entrepreneurial talent, together with access to professional services, capital and

markets on the EU level, and bringing key innovation actors together around a common goal are

key ingredients for nurturing an innovation ecosystem. There is a need to coordinate efforts across

the EU.in order to create a critical mass of interconnected EU-wide entrepreneurial clusters and

ecosystems,

Efforts are still needed to develop ecosystems where researchers, innovators, industries and

governments can easily interact. Innovation ecosystems, in fact, still do not work optimally due to a

number of reasons such as:

–
Interaction among innovation players is still hampered by organizational, regulatory and

cultural barriers between them;

–
Efforts to strengthen innovation systems lack coordination and a clear focus on specific

objectives and impact.

14501/18 SD/CF/MI/lv 76

# ANNEX ECOMP.3.C. EN

To address future challenges, embrace the opportunities of new technologies and contribute to

sustainable economic growth, jobs, competitiveness and the well-being of Europe’s citizens, there is

the need to further strengthen Europe’s capacity to innovate by: fostering the creation of new

environments conducive to collaboration and innovation; strengthening the innovation capabilities

of academia and the research sector; supporting a new generation of entrepreneurial people;

stimulating the creation and the development of innovative ventures.

The nature and scale of the innovation challenges require liaising and mobilising players and

resources at European scale, by fostering cross-border collaboration. There is a need to break down

silos between disciplines and along value chains and nurture the establishment of a favorable

environment for an effective exchange of knowledge and expertise, and for the development and

attraction of entrepreneurial talents.

2. Areas of Intervention

_2.1._ _Sustainable innovation ecosystems across Europe_

In accordance with the EIT regulation and the Strategic Innovation Agenda,the EIT will play a

reinforced role in strengthening sustainable innovation ecosystems across Europe. In particular, the

EIT will continue to operate primarily through its Knowledge and Innovation Communities (KICs),

the large-scale European partnerships that address specific societal challenges. It will continue to

strengthen innovation ecosystems around them, by opening them up and by fostering the integration

of research, innovation and education. Furthermore, EIT will contribute to bridge existing gaps in

innovation performance across Europe by expanding its Regional Innovation Scheme (EIT RIS).

The EIT will work with innovation ecosystems that exhibit high innovation potential based on

strategy, thematic alignment and impact, in close synergy with Smart Specialisation Strategies and

Platforms.

_Broad Lines_

–
Reinforcing the effectiveness of the existing KICs enabling the transition to self

sustainability in the long-term, and setting up new ones in a limited number of thematic

areas;

14501/18 SD/CF/MI/lv 77

# ANNEX ECOMP.3.C. EN

–
Accelerating regions towards excellence in countries that are modest or moderate

innovators, in close cooperation with relevant structural funds where appropriate.

_2.2._ _Innovation and entrepreneurial skills in a lifelong learning perspective, including_

_increasing capacities of universities across Europe_

The EIT education activities will be reinforced to foster innovation and entrepreneurship through

better education and training. A stronger focus on human capital development will be grounded on

the expansion of existing EIT KICs education programmes in the view of continuing to offer

students and professionals high quality curricula based on innovation and entrepreneurship in line in

particular with the EU industrial and skills strategy. This may include researchers and innovators

supported by other parts of Horizon Europe, in particular MSCA. The EIT will also support the

modernisation of universities across Europe and their integration in innovation ecosystems by

stimulating and increasing their entrepreneurial potential and capabilities and encouraging them to

better anticipate new skills requirements.

_Broad Lines_

–
Development of innovative curricula, taking into account the future needs of industry,

and cross-cutting programmes to be offered to students, entrepreneurs and professionals

across Europe and beyond where specialist and sector specific knowledge is combined

with innovation-oriented and entrepreneurial skills, such as high-tech skills related to

digital and key enabling technologies;

–
Strengthening and expanding the EIT label in order to improve the visibility and the

recognition of EIT of education programmes based on partnerships between different

higher education institutions, research centres and companies and offering learning-by

doing curricula and purposeful entrepreneurship education as well as international,

inter-organisational and cross-sectorial mobility;

14501/18 SD/CF/MI/lv 78

# ANNEX ECOMP.3.C. EN

–
Development of innovation and entrepreneurship capabilities of the higher education

sector, by leveraging the EIT Community expertise in linking education, research and

business;

–
Reinforcing the role of the EIT Alumni community as role model for new students and

strong instrument to communicate EIT impact.

2.3. New solutions to the market

The EIT will facilitate and empower entrepreneurs, innovators, researchers, educators, students and

other innovation actors to work together in cross-disciplinary teams to generate ideas and transform

them into both incremental and disruptive innovations. Activities will be characterised by an open

innovation and cross-border approach, with a focus on including relevant Knowledge Triangle

activities that are pertinent to making them a success (e.g. project’s promoters can improve their

access to: specifically qualified graduates, lead users, start-ups with innovative ideas, non-domestic

firms with relevant complementary assets etc.).

_Broad Lines_

–
Support to the development of new products and services where Knowledge Triangle

actors will collaborate to make solutions market-ready;

–
Provision of high-level services and support to innovative businesses, including

technical assistance to fine-tuning of products or services, substantive mentoring,

support to secure target customers and raise capital, in order to swiftly reach the market

and speed up their growth process.

14501/18 SD/CF/MI/lv 79

# ANNEX ECOMP.3.C. EN

_2.4._ _Synergies and value added within Horizon Europe_

The EIT will step up its efforts to capitalise on synergies and complementarities with different

actors and initiatives at EU and global levels and extend its network of collaborating organisations

at both strategic and operational levels.

_Broad Lines_

–
Cooperation with the EIC in streamlining the support (i.e. funding and services) offered

to highly innovative ventures in both start-up and scale-up stages, in particular through

KICs;

–
Planning and implementation of EIT activities in order to maximise synergies and

complementarities with the actions under the Global Challenges and European

Industrial Competitiveness Pillar;

–
Engage with EU Member States at both national and regional level, establishing a

structured dialogue and coordinating efforts to enable synergies with national and

regional initiatives, including smart specialisation strategies, in order to identify, share

and disseminate good practices and learnings;

–
Share and disseminate innovative practices and learnings and contribute to innovation

policy in Europe in coordination with other parts of Horizon Europe;

–
Provision of input to innovation policy discussions and contribution to the design and

implementation of EU policy priorities by continuously working with all relevant

European Commission services, other EU programmes and their stakeholders, and

further exploring opportunities within policy implementing initiatives;

–
Exploitation of synergies with other EU programmes supporting human capital

development and innovation (e.g. ESF+, ERDF, Erasmus and COSME Plus/Single

Market);

14501/18 SD/CF/MI/lv 80

# ANNEX ECOMP.3.C. EN

–
Building strategic alliances with key innovation actors at EU and international level,

and support to KICs to develop collaboration and linkages with key Knowledge

Triangle partners from third countries, with the aim of opening new markets for KICs’

backed solutions and attract financing and talents from abroad. Participation of third

countries shall be promoted.]

14501/18 SD/CF/MI/lv 81

# ANNEX ECOMP.3.C. EN

**ANNEX II**

**TYPES OF ACTION**

The programme shall be implemented using a limited number of 'types of action', characterised by

their distinct objectives or conditions.

The main types of action are as follows:

–
Research and innovation action: action primarily consisting of activities aiming to establish

new knowledge and/or to explore the feasibility of a new or improved technology, product,

process, service or solution. This may include basic and applied research, technology

development and integration, testing, demonstration and validation on a small-scale prototype

in a laboratory or simulated environment;

–
Innovation action: action primarily consisting of activities directly aimed at producing plans

and arrangements or designs for new, altered or improved products, processes or services,

possibly including prototyping, testing, demonstrating, piloting, large-scale product validation

and market replication;

–
Innovation and market deployment actions: actions embedding an innovation action and other

activities necessary to deploy an innovation in the market, including the scaling-up of

companies, providing Horizon Europe blended finance (a mix of grant-type funding and

private finance);

–
ERC frontier research (including ERC Proof of Concept): principal investigator-led research

actions, hosted by single or multiple beneficiaries (ERC only);

–
Training and mobility action: action geared towards improvement of skills, knowledge and

career prospects of researchers based on mobility between countries, and, if relevant, between

sectors or disciplines;

14501/18 SD/CF/MI/lv 82

# ANNEX ECOMP.3.C. EN

–
Programme co-fund action: action to provide multi-annual co-funding to a programme of

activities established and/or implemented by entities managing and/or funding research and

innovation programmes, other than Union funding bodies. Such a programme of activities

may support networking and coordination, research, innovation, pilot actions, and innovation

and market deployment actions, training and mobility actions, awareness raising and

communication, dissemination and exploitation, any relevant financial support, such as grants,

prizes, procurement, as well as Horizon Europe blended finance or a combination thereof. The

programme co-fund action may be implemented by those entities directly or by third parties

on their behalf;

–
Pre-commercial procurement action: action with the primary aim of realising pre-commercial

procurement implemented by beneficiaries that are contracting authorities or contracting

entities;

–
Public procurement of innovative solutions action: action with the primary aim of realising

joint or coordinated public procurement of innovative solutions implemented by beneficiaries

that are contracting authorities or contracting entities;

–
Coordination and support action: action contributing towards the objectives of the

Programme, excluding research and innovation activities (except when undertaken under the

component "widening participation and sharing excellence" of the part "Widening

Participation and strengthening the European Research Area"), such as standardisation,

dissemination, awareness-raising and communication, networking, coordination or support

services, policy dialogues and mutual learning exercises and studies; bottom-up coordination

without co-funding of research activities from the EU that allows for cooperation between

legal entities from Member States and Associated Countries in order to strengthen the

European Research Area;

–
Inducement prize: prize to spur investment in a given direction, by specifying a target prior to

the performance of the work;

14501/18 SD/CF/MI/lv 83

# ANNEX ECOMP.3.C. EN

–
Recognition prize: prize to reward past achievements and outstanding work after it has been

performed;

Public procurement: to implement parts of the programme related to strategic interests and

autonomy of the Union and to organise, for the Commission’s own purposes, public

procurements for studies, products, services and capabilities; public procurement may also

take the form of pre-commercial procurement or public procurement of innovative solutions

carried out by the Commission or funding bodies on their own behalf or jointly with

contracting authorities and contracting entities from Member States and associated countries.

***

–
Indirect actions: research and innovation activities to which the Union provides financial

support and which are undertaken by participants;

–
Direct actions: research and innovation activities undertaken by the Commission through its

Joint Research Centre (JRC).

***

14501/18 SD/CF/MI/lv 84

# ANNEX ECOMP.3.C. EN

**ANNEX III**

**PARTNERSHIPS**

European Partnerships shall be selected and implemented, monitored, evaluated, phased-out or
renewed on the basis of the following criteria:

**1) Selection** :

(a) Demonstrating that the European Partnership is more effective in achieving the related

objectives of the Programme through involvement and commitment of partners, in particular

in delivering clear impacts for the EU and its citizens, notably in view of delivering on global

challenges and research and innovation objectives, securing EU competitiveness and

contributing to the strengthening of the European Research and Innovation Area and, where

relevant, international commitments;

In the case of institutionalised European Partnerships established in accordance with Article

185 TFEU, the participation of at least 40% of the EU Member States is mandatory;

(b) Coherence and synergies of the European Partnership within the EU research and innovation

landscape, following the Horizon Europe rules to the largest extent possible ;

(c) Transparency and openness of the European Partnership as regards the identification of

priorities and objectives in terms of expected results and impacts and as regards the

involvement of partners and stakeholders from across the entire value chain, from different

sectors and disciplines, including international ones when relevant and not interfering with

European competitiveness; clear modalities for promoting participation of SMEs and for

desseminating and exploiting results, notably by SMEs, including through intermediary

organisations;

14501/18 SD/CF/MI/lv 85

# ANNEX ECOMP.3.C. EN

(d) Ex-ante demonstration of additionality and directionality of the European Partnership,

including a common strategic vision of the purpose of the European Partnership. This vision

will include in particular:

–
identification of measurable expected deliverables, outcomes, and impacts within

specific timeframes, including key economic and/or societal value for Europe;

–
demonstration of expected qualitative and significant quantitative leverage effects,

including a method for the measurement of key performance indicators;

–
approaches to ensure flexibility of implementation and to adjust to changing policy or

societal or market needs, or scientific advances, to increase policy coherence between

regional, national and EU level;

–
exit-strategy and measures for phasing-out from the Programme.

(e) Ex-ante demonstration of the partners’ long term commitment, including a minimum share of

public and/or private investments;

In the case of institutionalised European Partnerships, the financial and/or in-kind,

contributions from partners other than the Union, will at least be equal to 50% and may reach

up to 75% of the aggregated European Partnership budgetary commitments. For each

institutionalised European Partnership, a share of the contributions from partners other than

the Union will be in the form of financial contributions. For partners other than the Union and

Participating States, financial contributions should be aimed primarily at covering costs

related to non-competitive activities.

**2) Implementation** :

(a) Systemic approach ensuring active and early involvement of Member States and achievement

of the expected impacts of the European Partnership through the flexible implementation of

joint actions of high European added value also going beyond joint calls for research and

innovation activities, including those related to market, regulatory or policy uptake;

14501/18 SD/CF/MI/lv 86

# ANNEX ECOMP.3.C. EN

(b) Appropriate measures ensuring continuous openness of the initiative and transparency during

implementation, notably for priority setting and for participation in calls for proposals,

visibility of the Union, communication and outreach measures, dissemination and exploitation

of results, including clear open access/user strategy along the value chain; appropriate

measures for promoting participation of SMEs and informing SMEs;

(c) Coordination and/or joint activities with other relevant research and innovation initiatives

ensuring effective synergies, inter alia to overcome potential implementation barriers at

national level and increase cost-effectiveness;

(d) Commitments, in particular for financial contributions, from each partner in accordance with

national provisions throughout the lifetime of the initiative;

(e) In the case of institutionalised European Partnership access to the results and other action

related information for the Commission and any participating state co-funding the relevant

action for the purpose of developing, implementing and monitoring of Union policies or

programmes.

**3) Monitoring** :

(a) A monitoring system in line with the requirements set out in Article 45 to track progress

towards specific policy objectives, deliverables and key performance indicators allowing for

an assessment over time of achievements, impacts and potential needs for corrective

measures;

(b) Periodic dedicated reporting on quantitative and qualitative leverage effects, including on

committed and actually provided financial and in-kind contributions, visibility and positioning

in the international context, impact on research and innovation related risks of private sector

investments;

(c) Detailed information on the evaluation process and results from all calls for proposals within

partnerships, to be made available timely and accessible in a common e-database.

14501/18 SD/CF/MI/lv 87

# ANNEX ECOMP.3.C. EN

**4) Evaluation, phasing-out and renewal** :

(a) Evaluation of impacts achieved at Union and national level in relation to defined targets and

key performance indicators, feeding into the Programme evaluation set out in Article 47,

including an assessment of the most effective policy intervention mode for any future action;

and the positioning of any possible renewal of a European Partnership in the overall European

Partnerships landscape and its policy priorities in close consultation with Member States;

(b) In the absence of renewal, appropriate measures ensuring phasing-out of Framework

Programme funding according to the conditions and timeline agreed with the committed

partners ex-ante, without prejudice to possible continued transnational funding by national or

other Union programmes, and without prejudice to private investment.

14501/18 SD/CF/MI/lv 88

# ANNEX ECOMP.3.C. EN

**ANNEX IV**

**SYNERGIES WITH OTHER PROGRAMMES**

[1. Synergies with the European Agricultural Guarantee Fund and the European Agricultural

Fund for Rural Development (Common Agricultural Policy-CAP) will ensure that:

(a) research and innovation needs of the agricultural sector and rural areas within the EU

are identified notably within the European Innovation Partnership "agricultural

productivity and sustainability" **[29]** and taken into consideration in the Programme's

strategic research and innovation planning process and the work programmes;

(b) the CAP makes the best use of research and innovation results and promotes the use,

implementation and deployment of innovative solutions, including those stemming from

projects funded by the Framework Programmes for research and innovation and from

the European Innovation Partnership "agricultural productivity and sustainability";

(c) the EAFRD supports the uptake and dissemination of knowledge and solutions

stemming from the Programme's results leading to a more dynamic farming sector and

new openings for the development of rural areas.

2. Synergies with the European Maritime and Fisheries Fund (EMFF) will ensure that:

(a) the Programme and the EMFF are largely interlinked as EU research and innovation

needs in the field of marine and maritime policy will be translated through the

Programme's strategic research and innovation planning process;

**29** Communication from the Commission to the European Parliament and the Council on the
European Innovation Partnership 'Agricultural Productivity and Sustainability' (COM(2012)
79 final).

14501/18 SD/CF/MI/lv 89

# ANNEX ECOMP.3.C. EN

(b) the EMFF supports the rolling out of novel technologies and innovative products,

processes and services, in particular those resulting from the Programme in the fields of

marine and maritime policy; the EMFF also promotes ground data collection and data

processing and disseminates relevant actions supported under the Programme, which in

turn contributes to the implementation of the Common Fisheries Policy, the EU

Maritime Policy and International Ocean Governance.

3. Synergies with the European Regional Development Fund (ERDF) will ensure that:

(a) arrangements for combined funding from ERDF and Programme are used to support

activities providing a bridge between smart specialisations strategies and international

excellence in research and innovation, including joint trans-regional/trans-national

programmes and pan European Research Infrastructures, with the aim of strengthening

the European Research Area;

(b) the ERDF focuses amongst others on the development and strengthening of regional and

local research and innovation ecosystems and industrial transformation, including

support to the take-up of results and the rolling out of novel technologies and innovative

solutions from the Framework Programmes for research and innovation through the

ERDF.

4. Synergies with the European Social Fund Plus (ESF+) will ensure that:

(a) the ESF+ can mainstream and scale up innovative curricula supported by the

Programme, through national or regional programmes, in order to equip people with the

skills and competences needed for the jobs of the future;

(b) arrangements for complementary funding from ESF+ can be used to support activities

promoting human capital development in research and innovation with the aim of

strengthening the European Research Area;

14501/18 SD/CF/MI/lv 90

# ANNEX ECOMP.3.C. EN

(c) the Health strand of the European Social Fund+ mainstreams innovative technologies

and new business models and solutions, in particular those resulting from the

Programmes, so to contribute to innovative, efficient and sustainable health systems of

the Member States and facilitate access to better and safer healthcare for European

citizens.

5. Synergies with the Connecting Europe Facility (CEF) will ensure that:

(a) research and innovation needs in the areas of transport, energy and in the digital sector

within the EU are identified and established during the Programme's strategic research

and innovation planning process;

(b) the CEF supports the large-scale roll-out and deployment of innovative new

technologies and solutions in the fields of transport, energy and digital physical

infrastructures, in particular those resulting from the Framework Programmes for

research and innovation;

(c) the exchange of information and data between the Framework Programme and CEF

projects will be facilitated, for example by highlighting technologies from the

Framework Programme with a high market readiness that could be further deployed

through the CEF.

6. Synergies with the Digital Europe Programme (DEP) will ensure that:

(a) whereas several thematic areas addressed by the Programme and DEP converge, the

type of actions to be supported, their expected outputs and their intervention logic are

different and complementary;

14501/18 SD/CF/MI/lv 91

# ANNEX ECOMP.3.C. EN

(b) research and innovation needs related to digital aspects are identified and established in

the Programme's strategic research and innovation plans; this includes research and

innovation for High Performance Computing, Artificial Intelligence, Cybersecurity,

combining digital with other enabling technologies and non-technological innovations;

support for the scale-up of companies introducing breakthrough innovations (many of

which will combine digital and physical technologies; the integration of digital across

all the pillar 'Global Challenges and Industrial Competitiveness'; and the support to

digital research infrastructures;

(c) DEP focuses on large-scale digital capacity and infrastructure building in High

Performance Computing, Artificial Intelligence, Cybersecurity and advanced digital

skills aiming at wide uptake and deployment across Europe of critical existing or tested

innovative digital solutions within an EU framework in areas of public interest (such as

health, public administration, justice and education) or market failure (such as the

digitisation of businesses, notably small and medium enterprises); DEP is mainly

implemented through coordinated and strategic investments with Member States,

notably through joint public procurement, in digital capacities to be shared across

Europe and in EU-wide actions that support interoperability and standardisation as part

of developing a Digital Single Market;

(d) DEP capacities and infrastructures are made available to the research and innovation

community, including for activities supported through the Programme including testing,

experimentation and demonstration across all sectors and disciplines;

(e) novel digital technologies developed through the Programme, are progressively be taken

up and deployed by DEP;

(f) the Programme's initiatives for the development of skills and competencies curricula,

including those delivered at the co-location centres of the European Institute of

Innovation and Technology's KIC-Digital, are complemented by Digital Europe

supported capacity-building in advanced digital skills;

14501/18 SD/CF/MI/lv 92

# ANNEX ECOMP.3.C. EN

(g) strong coordination mechanisms for strategic programming and operating procedures

for both programmes are aligned, and their governance structures involve the respective

Commission services as well as others concerned by the different parts of the respective

programmes.

7. Synergies with the Single Market Programme will ensure that:

(a) the Single Market Programme addresses the market failures which affect all SMEs, and

will promote entrepreneurship and the creation and growth of companies. Full

complementarity exists between the Single Market Programme and the actions of the

future European Innovation Council for innovative companies, as well as in the area of

support services for SMEs, in particular where the market does not provide viable

financing;

(b) the Enterprise Europe Network may serve, as other existing SME support structures

(e.g. National Contact Points, Innovation Agencies), to deliver support services under

the European Innovation Council.

14501/18 SD/CF/MI/lv 93

# ANNEX ECOMP.3.C. EN

8. Synergies with the LIFE - Programme for Environment and Climate Action (LIFE) will

ensure that:

Research and innovation needs to tackle environmental, climate and energy challenges within

the EU are identified and established during the Programme’s strategic research and

innovation planning process. LIFE will continue to act as a catalyst for implementing EU

environment, climate and relevant energy policy and legislation, including by taking up and

applying research and innovation results from the Programme and help deploying them at

national and (inter-)regional scale where it can help address environmental, climate or clean

energy transition issues. In particular LIFE will continue to incentivise synergies with the

Programme through the award of a bonus during the evaluation for proposals which feature

the uptake of results from the Programme. LIFE standard action projects will support the

development, testing or demonstration of suitable technologies or methodologies for

implementation of EU environment and climate policy, which can subsequently be deployed

at large scale, funded by other sources, including by the Programme. The Programme’s

European Innovation Council can provide support to scale up and commercialise new

breakthrough ideas that may result from the implementation of LIFE projects.

9. Synergies with the Erasmus Programme will ensure that:

(a) combined resources from the Programme and the Erasmus Programme are used to

support activities dedicated to strengthening and modernising European higher

education institutions. The Programme will complement Erasmus programme support

for the European Universities initiative, in particular its research dimension as part of

developing new joint and integrated long term and sustainable strategies on education,

research and innovation based on trans-disciplinary and cross-sectoral approaches to

make the knowledge triangle a reality, providing impetus to economic growth;

14501/18 SD/CF/MI/lv 94

# ANNEX ECOMP.3.C. EN

(b) the Programme and the Erasmus Programme foster the integration of education and

research through facilitating higher education institutions to formulate and set up

common education, research and innovation strategies, to inform teaching with the

latest findings and practices of research to offer active research experience to all

students and higher education staff and in particular researchers, and to support other

activities that integrate higher education, research and innovation.

10. Synergies with the European Space Programme will ensure that:

(a) research and innovation needs of the space upstream and downstream sector within the

EU are identified and established as part of the Programme's strategic research and

innovation planning process; space research actions implemented through Horizon

Europe will be implemented with regard to procurement and eligibility of entities in line

with the provisions of the Space Programme, where appropriate;

(b) space data and services made available as a public good by the European Space

Programme are used to develop breakthrough solutions through research and

innovation, including in the Framework Programme, in particular for sustainable food

and natural resources, climate monitoring, smart cities, automated vehicles, security and

disaster management;

(c) the Copernicus Data and Information Access Services contribute to the European Open

Science Cloud and thus facilitate access to Copernicus data for researchers and

scientists; research infrastructures, in particular in situ observing networks will

constitute essential elements of the in situ observation infrastructure enabling the

Copernicus services, and in turn, they benefit from information produced by Copernicus

services.

14501/18 SD/CF/MI/lv 95

# ANNEX ECOMP.3.C. EN

11. Synergies with the Neighbourhood, Development and International Cooperation Instrument

(the 'External Instrument') will ensure that the Programme's research and innovation activities

with the participation of Third Countries and targeted international cooperation actions seek

alignment and coherence with parallel market uptake and capacity-building actions strands

under the External Instrument, based on joint definition of needs and areas of intervention

commonly defined during the Programme's strategic research and innovation planning

process.

12. Synergies with the Internal Security Fund and the instrument for border management as part

of the Integrated Border Management Fund will ensure that:

(a) the research and innovation needs in the areas of security and integrated border

management are identified and established during the Programme's strategic research

and innovation planning process;

(b) the Internal Security Fund and the Integrated Border Management Fund support the

deployment of innovative new technologies and solutions, in particular those resulting

from the Framework Programmes for research and innovation in the field of security

research.

13. Synergies with the InvestEU Fund will ensure that:

(a) the Programme provide out of its own budget Horizon Europe and EIC blended finance

for innovators, characterised by a high level of risk and for which the market does not

provide when relevant viable and sustainable financing, and at the same time will

provide for appropriate coordination in support of the effective delivery and

management of the private finance part of the blended finance through funds and

intermediaries supported by InvestEU;

(b) financial instruments for research and innovation and SMEs are grouped together under

the InvestEU Fund, in particular through a dedicated R&I thematic window, and

through products deployed under the SME window targeting innovative companies, in

this way also helping to deliver the objectives of the Programme.

14501/18 SD/CF/MI/lv 96

# ANNEX ECOMP.3.C. EN

14. Synergies with the Innovation Fund under the Emission Trading Scheme (the 'Innovation

Fund') will ensure that:

(a) the Innovation Fund will specifically target innovation in low-carbon technologies and

processes, including environmentally safe carbon capture and utilisation that contributes

substantially to mitigate climate change, as well as products substituting carbon

intensive ones, and to help stimulate the construction and operation of projects that aim

at the environmentally safe capture and geological storage of CO2 as well as innovative

renewable energy and energy storage technologies;

(b) the Programme will fund the development and demonstration of technologies that can

deliver on EU decarbonisation, energy and industrial transformation objectives,

especially in its Pillar 2;

(c) the Innovation Fund may, subject to fulfilment of its selection and award criteria,

support the demonstration phase of eligible projects that may have received the support

from the Framework Programmes for research and innovation.

15. Synergies with the Euratom Research and Training Programme will ensure that:

(a) the Programme and the Euratom Research and Training Programme develop

                                                            comprehensive actions supporting education and training (including Marie Skłodowska

Curie Actions) with the aim of maintaining and developing relevant skills in Europe;

(b) the Programme and the Euratom Research and Training Programme develop joint

research actions focussing on cross-cutting aspects of the safe and secure use of non

power applications of ionising radiation in sectors such as medicine, industry,

agriculture, space, climate change, security and emergency preparedness and

contribution of nuclear science.

16. Synergies with the European Defence Fund will benefit civil and defence research.

Unnecessary duplication will be excluded.]

14501/18 SD/CF/MI/lv 97

# ANNEX ECOMP.3.C. EN

**ANNEX V**

**KEY IMPACT PATHWAY INDICATORS**

Impact pathways, and related key impact pathway indicators, shall structure the monitoring of the

                                                           Framework Programme’s (FP) performance towards its objectives. The impact pathways are time

sensitive: they distinguish between the short, medium and long term, including beyond the

Programme duration. Impact pathway indicators serve as proxies to report on the progress made

towards each type of Research and Innovation (R&I) impact at the FP-level. These indicators shall

be compiled using quantitative and qualitative methodologies. Individual Programme parts will

contribute to these indicators to a different degree and through different mechanisms. Additional

indicators may be used to monitor individual programme parts, where relevant.

The micro-data behind the key impact pathway indicators will be collected for all parts of the

Programme and all delivery mechanisms in a centrally managed and harmonised way and at the

appropriate level of granularity with minimal reporting burden on the beneficiaries.

In addition and beyond key impact pathways indicators, programme implementation and

management data will also be collected and reported in close to real-time, including the monitoring

of collaborative links, and network analytics. This will include, inter alia, data on proposals,

applications, participations and projects; applicants and participants (including the type of

organization, such as SME, country, gender, role in project, scientific discipline/sector, including

SSH); and contribution to Union climate objectives.

14501/18 SD/CF/MI/lv 98

# ANNEX ECOMP.3.C. EN

**Scientific impact pathway indicators**

The Programme is expected to have scientific impact by creating high-quality new knowledge,

strengthening human capital in research and innovation, and fostering diffusion of knowledge and

Open Science. Progress towards this impact will be monitored through proxy indicators set along

the following three key impact pathways.

|Towards scientific<br>impact|Short-term|Medium-term|Longer-term|
|---|---|---|---|
|**Creating high-quality**<br>**new knowledge**|Publications-<br>Number of FP peer<br>reviewed scientific<br>publications|Citations-<br>Field-Weighted Citation<br>Index of FP peer reviewed<br>publications|World-class science -<br>Number and share of peer<br>reviewed publications from<br>FP projects that are core<br>contribution to scientific<br>fields|
|**Strengthening human**<br>**capital in R&I**|Skills-<br>Number of researchers<br>involved in upskilling<br>(training,<br>mentoring/coaching,<br>mobility and access to R&I<br>infrastructures) activities in<br>FP projects|Careers-<br>Number and share of<br>upskilled FP researchers<br>with increased individual<br>impact in their R&I field|Working conditions - <br>Number and share of<br>upskilled FP researchers with<br>improved working conditions|
|**Fostering diffusion of**<br>**knowledge and Open**<br>**Science**|Shared knowledge -<br>Share of FP research<br>outputs (open data/<br>publication/ software etc.)<br>shared through open<br>knowledge infrastructures|Knowledge diffusion- <br> Share of open access FP<br>research outputs actively<br>used/cited|New collaborations -<br>Share of FP beneficiaries<br>having developed new<br>transdisciplinary/ trans-<br>sectoral collaborations with<br>users of their open FP R&I<br>outputs|

14501/18 SD/CF/MI/lv 99

# ANNEX ECOMP.3.C. EN

**Societal impact pathway indicators**

The Programme is expected to have societal impact by addressing EU policy priorities and global

challenges, including SDGs, following the principles of the Agenda 2030 and the Paris Agreement,

through R&I, delivering benefits and impact through R&I missions and strengthening the uptake of

innovation in society. Progress towards this impact will be monitored through proxy indicators set

along the following three key impact pathways.

|Towards societal<br>impact|Short-term|Medium-term|Longer-term|
|---|---|---|---|
|Addressing EU policy<br>priorities through R&I|Outputs -<br>Number and share of<br>outputs aimed at<br>addressing identified EU<br>policy priorities and global<br>challenges (including<br>climate action and SDGs)<br>(multidimensional: for<br>each identified priority)|Solutions -<br>Number and share of<br>innovations and research<br>results addressing identified<br>EU policy priorities and<br>global challenges (including<br>climate action and SDGs)<br>(multidimensional: for each<br>identified priority)|Benefits -<br>Aggregated estimated effects<br>from use of FP-funded<br>results, on tackling identified<br>EU policy priorities and<br>global challenges (including<br>climate action and SDGs),<br>including contribution to the<br>policy and law-making cycle<br>(multidimensional: for each<br>identified priority)|
|Delivering benefits and<br>impact through R&I<br>missions|R&I mission outputs -<br>Outputs in specific R&I<br>missions<br>(multidimensional: for<br>each identified mission)|R&I mission results -<br>Results in specific R&I<br>missions<br>(multidimensional: for each<br>identified mission)|R&I mission targets met -<br>Targets achieved in specific<br>R&I missions<br>(multidimensional: for each<br>identified mission)|
|Strengthening the uptake<br>of innovation in society|Co-creation -<br>Number and share of FP<br>projects where EU citizens<br>and end-users contribute to<br>the co-creation of R&I<br>content|Engagement -<br>Number and share of FP<br>beneficiary entities with<br>citizen and end-users<br>engagement mechanisms<br>after FP project|Societal R&I uptake<br>Uptake and outreach of FP<br>co-created scientific results<br>and innovative solutions|

14501/18 SD/CF/MI/lv 100

# ANNEX ECOMP.3.C. EN

**Technological/Economic impact pathway indicators**

The Programme is expected to have technological/economic impact by influencing the creation and

growth of companies, creating direct and indirect jobs, and by leveraging investments for research

and innovation. Progress towards this impact will be monitored through proxy indicators set along

the following three key impact pathways.

|Towards<br>technological/economic<br>impact|Short-term|Medium-term|Longer-term|
|---|---|---|---|
|**Generating innovation-based**<br>**growth**|Innovative outputs-<br>Number of innovative<br>products, processes or<br>methods from FP (by<br>type of innovation) &<br>Intellectual Property<br>Rights (IPR) applications|Innovations-<br>Number of innovations<br>from FP projects (by type<br>of innovation) including<br>from awarded IPRs|Economic growth -<br>Creation, growth & market<br>shares of companies having<br>developed FP innovations|
|**Creating more and better jobs**|Supported employment -<br>Number of FTE jobs<br>created, and jobs<br>maintained in beneficiary<br>entities for the FP project<br>(by type of job)|Sustained employment-<br>Increase of FTE jobs in<br>beneficiary entities<br>following FP project (by<br>type of job)|Total employment <br>Number of direct &<br>indirect jobs created or<br>maintained due to diffusion<br>of FP results (by type of<br>job)|
|**Leveraging investments in**<br>**R&I**|Co-investment-<br>Amount of public &<br>private investment<br>mobilised with the initial<br>FP investment|Scaling-up-<br>Amount of public &<br>private investment<br>mobilised to exploit or<br>scale-up FP results|Contribution to ‘3% target’ <br>-<br>EU progress towards 3%<br>GDP target due to FP|

14501/18 SD/CF/MI/lv 101

# ANNEX ECOMP.3.C. EN