Source: EURLEX
Language: en
Format: md

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

**Interinstitutional File:**

**2018/0224(COD)**

**INFORMATION NOTE**

**Brussels, 29 May 2019**
**(OR. en)**

**8571/19**

**CODEC 948** **ENV 429**
**RECH 224** **REGIO 85**
**COMPET 343** **AGRI 219**
**IND 146** **TRANS 283**
**MI 374** **SAN 215**
**EDUC 206** **CADREFIN 205**
**TELECOM 185** **SUSTDEV 68**
**ENER 238** **PE 201**

From: General Secretariat of the Council

To: Permanent Representatives Committee/Council

Subject: 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

          - Outcome of the European Parliament's first reading

(Strasbourg, 15 to 18 April 2019)

**I.** **INTRODUCTION**

The rapporteur, Dan NICA (S&D, RO), presented a report on the proposal for a Regulation on

behalf of the Committee on Industry, Research and Energy. The report contained one amendment to

the proposal (amendment 203).

In addition, the Greens/EFA political group tabled one amendment (amendment 212) and

GUE/NGL tabled eight amendments (amendments 204-211).

8571/19 ID/mv 1

# GIP.2 EN

**II.** **VOTE**

When it voted on 17 April 2019, the plenary adopted the amendment 203 to the proposal for a

Regulation.

The Commission's proposal as thus amended constitutes the Parliament's first-reading position

which is contained in its legislative resolution as set out in the Annex hereto [1] .

The parts of the attached text that are not highlighted in grey correspond in substance, with minor

inconsistencies, to the common understanding reached on 19 March 2019 at the last trilogue

meeting under the 8th parliamentary term (2014-2019). Such inconsistencies are to be corrected

before Council adopts its position, once an agreement has been reached on the whole text.

**1** The version of the Parliament's position in the legislative resolution has been marked up to
indicate the changes made by the amendments to the Commission's proposal. Additions to the
Commission's text are highlighted in _**bold and italics.**_ The symbol " ▌" indicates deleted text.

8571/19 ID/mv 2

# GIP.2 EN

**ANNEX**

**(17.4.2019)**

## **–** **Establishing Horizon Europe  laying down its rules for participation and** **dissemination ***I**

**European Parliament legislative resolution of 17 April 2019 on the 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 (COM(2018)0435 – C8-0252/2018 – 2018/0224(COD))**

**(Ordinary legislative procedure: first reading)**

_The European Parliament_,

–
having regard to the Commission proposal to Parliament and the Council (COM(2018)0435),

–
having regard to Article 294(2) and Articles 173(3), 182(1), 183 and 188 of the Treaty on the
Functioning of the European Union, pursuant to which the Commission submitted the
proposal to Parliament (C8-0252/2018),

–
having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

–
having regard to the letter from its President to the committee chairs of 25 January 2019
outlining the Parliament's approach to the Multiannual Financial Framework (MFF) post-2020
sectorial programmes,

–
having regard to the letter from the Council to the President of the European Parliament of 1
April 2019 confirming the common understanding reached between the co-legislators during
negotiations,

–
having regard to Rule 59 of its Rules of Procedure,

–
having regard to the report of the Committee on Industry, Research and Energy and the
opinions of the Committee on Development, the Committee on Budgets, the Committee on
Budgetary Control, the Committee on the Environment, Public Health and Food Safety, the
Committee on Transport and Tourism, the Committee on Regional Development, the
Committee on Agriculture and Rural Development and the Committee on Culture and
Education (A8-0401/2018),

1. Adopts its position at first reading hereinafter set out **[1]** ;

2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially
amends or intends to substantially amend its proposal;

3. Instructs its President to forward its position to the Council, the Commission and the national
parliaments.

**1** This position replaces the amendments adopted on 12 December 2018 (Texts adopted,
P8_TA(2018)0509).

8571/19 ID/mv 3

# ANNEX GIP.2 EN

**P8_TC1-COD(2018)0224**

**Position of the European Parliament adopted at first reading on 17 April 2019 with a view to**

**the adoption of Regulation (EU) 2019/… 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**

(Text with EEA relevance **)**

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article

173(3), Article 182(1), Article 183, and the second paragraph of Article 188 thereof,

Having regard to the proposal from the European Commission,

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

Having regard to the opinion of the European Economic and Social Committee [1],

Having regard to the opinion of the Committee of the Regions [2],

Acting in accordance with the ordinary legislative procedure [3],

**1** OJ C […], […], p. […].
**2** OJ C […], […], p. […].

8571/19 ID/mv 4

# ANNEX GIP.2 EN

Whereas:

(1) It is the Union's objective to strengthen its scientific _**excellence**_ and technological bases _**in**_

_**which researchers, scientific knowledge and technology circulate freely**_ and encourage

its competitiveness, including in its industry, _**to strengthen the European Research Area**_

while promoting all research and innovation activities to deliver on the Union's strategic

priorities, _**and commitments**_ which ultimately aim at promoting peace, the Union's values

and the well-being of its peoples.

(2) To deliver scientific, economic and societal impact in pursuit of this general objective _**and**_

_**maximise the Union’s added value of its RDI investments,**_ the Union should invest in

research and innovation through Horizon Europe - a Framework Programme for Research

and Innovation 2021-2027 (the ‘Programme’) to support the creation ▌ ~~d~~ iffusion _**and**_

_**transfer**_ of high-quality knowledge and technologies _**in the Union**_, to strengthen the

impact of research and innovation _**in addressing**_ global challenges _**including the**_

_**Sustainable Development Goals and climate change, and**_ in developing, supporting and

implementing Union policies, to support the uptake of innovative _**and sustainable**_

solutions in _**the Union’s**_ industry and society to _**create jobs**_ and _**boost economic growth**_

_**and**_ industrial competitiveness; _**The Programme should**_ foster all forms of innovation, ▌

strengthen market deployment of innovative solutions; and optimise the delivery of

_**investments**_ .

_**(2a)**_ _**The Programme should contribute to**_ _**increasing public and private investment in R&I in**_

_**Member States thereby helping to reach an overall investment of at least 3% of the**_

_**Union’s GDP in research and development. The achievement of the target will require**_

_**Member States and the private sector to complement the Programme with their own and**_

_**reinforced investment actions in research, development and innovation.**_

_**(2b)**_ _**In view of achieving the objectives of this Programme and whilst respecting the principle**_

_**of excellence, the Programme should aim to strengthen,**_ _**among others, collaborative**_

_**links in Europe, thereby contributing to reducing the R&I divide.**_

8571/19 ID/mv 5

# ANNEX GIP.2 EN

(3) The promotion of research and innovation activities deemed necessary to help realise

Union policy objectives should take into account the innovation principle ▌ a _**key driver in**_

_**turning faster and more intensively the Union’s substantial knowledge assets into**_

_**innovations**_ _._

(4) _**The continuation of “**_ Open Science, Open Innovation, Open to the World _**” while**_

_**safeguarding the Union’s scientific and socio-economic interests**_ should ensure

excellence and impact of the Union's investment in research and innovation. _**and**_

_**strengthen the R&I capacity of all Member States. That**_ should ▌ _**lead to a balanced**_

implementation of the Programme▌.

8571/19 ID/mv 6

# ANNEX GIP.2 EN

(5) Open science ▌ has the potential to increase the quality, impact and benefits of science and

to accelerate the advancement of knowledge by making it more reliable, more efficient and

accurate, better understandable by society and responsive to societal challenges. Provisions

should be laid down to ensure that beneficiaries provide open access to peer-reviewed

scientific publications, research data and other research outputs in an open and non

discriminatory manner, free of charge and as early as possible in the dissemination process,

and to enable their widest possible use and re-use. _**As far as research data is concerned,**_

_**the principle should be “as open as possible, as closed as necessary”, thereby ensuring**_

_**the possibility of**_ _**exceptions**_ _**taking into consideration the Union’s socio-economic**_

_**interest, intellectual property rights, personal data protection and confidentiality,**_

_**security concerns and other legitimate interests.**_ More emphasis should ▌ be given to the

responsible management of research data, which should comply with the FAIR principles

of ‘Findability’, ‘Accessibility’, ‘Interoperability’ and ‘Reusability’, notably through the

mainstreaming of Data Management Plans. Where appropriate, beneficiaries should make

use of the possibilities offered by the European Open Science Cloud and _**the European**_

_**Data Infrastructure and**_ adhere to further open science principles and practices.

_**Reciprocal open access should be encouraged in international S&T cooperation**_

_**agreements and in relevant association agreements.**_

8571/19 ID/mv 7

# ANNEX GIP.2 EN

_**(5a)**_ _**SME beneficiaries are encouraged to make use of the existing instruments such as IPR**_

_**SME Helpdesk that supports European Union small and medium sized enterprises to**_

_**both protect and enforce their Intellectual Property (IP) rights through the provision of**_

_**free information and services, in the form of confidential advice on intellectual property**_

_**and related issues, plus training, materials and online resources.**_

(6) The conception and design of the Programme should respond to the need for establishing a

critical mass of supported activities, throughout the ▌ Union and through international

cooperation _**, while encouraging the participation of all Member States in the**_

_**Programme**_, in line with the UN Sustainable Development Goals (SDGs) _**and the Paris**_

_**Agreement**_ . Programme implementation should reinforce the pursuit of this aim.

(7) Activities supported under the Programme should contribute towards the achievement of

the Union's _**and the Programme’s**_ objectives _**,**_ ▌priorities _**and commitments**_, the

monitoring and assessment of progress against those objectives _**,▌**_ priorities _**and**_

_**commitments**_ and for the development of revised or new priorities.

_**(**_ **7a** _**)**_ _**The Programme should seek alignment with already existing European research and**_

_**innovation roadmaps and strategies.**_

8571/19 ID/mv 8

# ANNEX GIP.2 EN

(8) The Programme should maintain a balanced approach between bottom-up (investigator or

innovator driven) and top-down (determined by strategically defined priorities) funding,

according to the nature of the research and innovation communities that are engaged

_**across the Union**_, the _**success rates per area of intervention, the**_ types and purpose of the

activities carried out _**, the subsidiarity principle**_ and the impacts that are sought. The mix of

these factors should determine the choice of approach for the respective parts of the

Programme, all of which contribute to all of the Programme’s general and specific

objectives.

_**(8-a)**_ _**The overall budget for the Widening participation and spreading excellence strand of the**_

_**"Widening participation and strengthening the European Research Area" part of**_

_**Horizon Europe should be at least 3.3% of the overall Horizon Europe budget. This**_

_**budget should mainly benefit legal entities in the widening countries.**_

_**(8-b)**_ _**Excellence Initiatives should aim to strengthen research and innovation excellence in**_

_**the eligible countries, including for instance supporting training to improve R&I**_

_**managerial skills, prizes, strengthening innovation ecosystems as well as the creation of**_

_**R&I networks, including on the basis of research infrastructures financed by the EU.**_

_**Applicants need to clearly show that projects are linked with national and/or regional**_

_**R&I strategies to be able to apply for funding under the widening participation and**_

_**spreading excellence of the 'Widening participation and strengthening the European**_

_**Research Area' part of Horizon Europe.**_

_**(8**_ **a** _**)**_ _**A number of research and innovation actions should apply a Fast Track to Research**_

_**and Innovation logic where time-to-grant should not exceed six months. This should**_

_**allow a faster, bottom-up access to funds for small collaborative consortia covering**_

_**actions from fundamental research to market application.**_

_**(8b)**_ _**The Programme should support all stages of research and innovation especially within**_

_**collaborative projects. Fundamental research is an essential asset and an important**_

_**condition for increasing the Union’s ability to attract the best scientists in order to**_

_**become a global hub of excellence. The balance between basic and applied research**_

_**should be ensured. Coupled with innovation, this will support the Union’s economic**_

_**competitiveness, growth and jobs.**_

8571/19 ID/mv 9

# ANNEX GIP.2 EN

_**(8c)**_ _**In order to maximise the impact of Horizon Europe particular consideration should be**_

_**given to multidisciplinary, interdisciplinary and transdisciplinary approaches as**_

_**necessary elements for major scientific progress.**_

_**(8d)**_ _**The engagement with society is to be fostered through responsible research and**_

_**innovation as a cross-cutting element with a view to build effective cooperation between**_

_**science and society. It would allow all societal actors (researchers, citizens, policy**_

_**makers, business, third sector organisations etc.) to work together during the whole**_

_**research and innovation process in order to better align both the process and its**_

_**outcomes with the values, needs and expectations of European society.**_

(9) Research activities carried out under the pillar '' _**Excellent and Open**_ Science' should be

determined according to the needs and opportunities of science. The research agenda

should be set in close liaison with the scientific community _**and include emphasis on**_

_**attracting new R&I talents, young researchers, while strengthening the ERA and**_

_**avoiding brain drain.**_ Research should be funded on the basis of excellence.

8571/19 ID/mv 10

# ANNEX GIP.2 EN

(10) The pillar 'Global Challenges and _**European**_ Industrial Competitiveness' should be

established through clusters of research and innovation activities, in order to maximise

integration across the respective work areas while securing high and sustainable levels of

impact _**for the Union**_ in relation to the resources that are expended. It will encourage

cross-disciplinary, cross-sectoral, cross-policy and cross-border collaboration in pursuit of

the UN SDGs and the _**Union’s commitments under the Paris Agreement and where**_

_**needed to address societal challenges, and the**_ competitiveness of the Union's industries

therein. _**The activities under this pillar should cover the full range of research and**_

_**innovation activities including R&D, piloting, demonstration, and support for public**_

_**procurement, pre-normative research and standard setting, and market uptake of**_

_**innovations to ensure that Europe stays at the cutting-edge of research in strategically**_

_**defined priorities.**_

(11) Full _**and timely**_ engagement of industry in the Programme, at all levels from the individual

entrepreneur and small and medium-sized enterprises to large scale enterprises, should ▌

specifically towards the creation of sustainable jobs and growth. ▌

8571/19 ID/mv 11

# ANNEX GIP.2 EN

(12) It is important to support _**the Union’s**_ industry to stay or become world leader in

innovation, digitisation and decarbonisation, notably through investments in key enabling

technologies that will underpin tomorrow's business. _**Key Enabling Technologies (KETs)**_

_**are set to play a central role in Pillar II 'Global Challenges and European Industrial**_

_**Competitiveness' and should be further connected to the Future and Emerging**_

_**Technologies (FET) Flagships to allow research projects to cover the whole innovation**_

_**chain.**_ The Programme's actions _**should reflect the Union’s Industrial Policy Strategy so**_

_**as**_ to address market failures or sub-optimal investment situations _**, to boost investments**_ in

a proportionate _**and transparent**_ manner, without duplicating or crowding out private

financing and have a clear European added value _**and public return on investments**_ . This

will ensure consistency between the actions of the programme and EU _**RDI**_ State aid rules,

_**which should be revised in order to incentivise innovation**_ .

8571/19 ID/mv 12

# ANNEX GIP.2 EN

(13) The Programme should support research and innovation in an integrated manner,

respecting all relevant provisions of the World Trade Organisation. The concept of

research, including experimental development should be used in accordance with the

Frascati Manual developed by the OECD, whereas the concept of innovation should be

used in accordance with the Oslo Manual developed by the OECD and Eurostat, following

a broad approach that covers social innovation _**, design and creativity**_ . The OECD

definitions regarding Technological Readiness Level (TRL) should _**be taken into account**_,

as in the previous Framework Programme Horizon 2020 ▌. The work programme for a

given call under the pillar 'Global Challenges and Industrial _**European**_ Competitiveness'

could allow grants for large-scale product validation and market replication.

8571/19 ID/mv 13

# ANNEX GIP.2 EN

(14) The Commission's Communication on the interim evaluation of Horizon 2020

(COM(2018) 2 final) _**and the European Parliament’s report on the assessment of the**_

_**implementation of Horizon 2020 in view of its interim evaluation and the Framework**_

_**Programme 9 proposal (2016/2147(INI)) have**_ provided a set of recommendations for this

Programme, including its Rules for participation and dissemination, building on the lessons

learnt from the previous Programme as well as input from EU institutions and

stakeholders. Those recommendations include to invest more ambitiously in order to reach

critical mass and maximise impact; to support breakthrough innovation; to prioritise Union

research and innovation (R&I) investments in areas of high added value, notably through

mission-orientation, _**full, well-informed and timely**_ citizen involvement and wide

communication; to rationalise the Union funding landscape, _**in order to fully use the R&I**_

_**potential of all Member States**_ including by streamlining the range of partnership

initiatives and co-funding schemes; the development of more and concrete synergies

between different Union funding instruments, notably with the aim of helping to mobilise

under-exploited R&I potential across the Union; to _**better involve research infrastructures**_

_**financed by the Union - especially from ERDF - into the Programme’s projects, to**_

strengthen international cooperation and reinforce openness to third countries' participation

_**while safeguarding the Union interest and broadening the participation of all Member**_

_**States in the Programme**_ ; and to continue simplification based on implementation

experiences from Horizon 2020.

8571/19 ID/mv 14

# ANNEX GIP.2 EN

(15) _**Cohesion policy should continue to contribute to research and innovation. Therefore,**_

_**special attention needs to be paid to the coordination and complementarity between the**_

_**two Union policies.**_ The Programme should seek _**alignment of rules and**_ synergies with

other Union programmes _**as referred to in Annex IV to this Regulation**_, from their design

and strategic planning, to project selection, management, communication, dissemination

and exploitation of results, to monitoring, auditing and governance. With a view to

avoiding overlaps and duplication and increasing the leverage of Union funding, _**as well as**_

_**decreasing administrative burden for the applicants and the beneficiaries, all types of**_

_**synergies should follow the principle “one action follows one set of rules”:**_

      - transfers from other Union programmes _**including the European Regional**_

_**Development Fund (ERDF),**_ to Horizon Europe activities can take place _**on a**_

_**voluntary basis**_ . In such cases they will follow Horizon Europe rules _**, but they will**_

_**be used only for the benefit of the Member State or managing authority, as**_

_**relevant, deciding to make the transfer;**_

_**-**_
_**co-funding of an action by Horizon Europe and another Union programme could**_

_**also be foreseen while not exceeding the total eligible costs of the action**_ . _**In such**_

_**cases, only Horizon Europe rules would apply and double audits should be**_

_**avoided;**_

8571/19 ID/mv 15

# ANNEX GIP.2 EN

_**-**_ _**Seals of Excellence should be awarded to all proposals which have passed the**_

_**“excellence” threshold in Horizon Europe but cannot be financed due to**_

_**budgetary constraints. In such cases, the rules of the Fund providing support**_

_**should apply with the exception of state aid rules.**_

(16) In order to achieve the greatest possible impact of Union funding and the most effective

contribution to the Union's policy objectives _**and commitments**_, the Programme _**may**_ enter

into European Partnerships with private and/or public sector partners _**, on the basis of the**_

_**outcome of the Strategic Planning**_ . Such partners include _**public and private**_ research _**and**_

_**innovation stakeholders, competence centres, business incubators, science and**_

_**technology parks,**_ bodies with a public service _**foundations**_ and civil society organisations

_**and regional innovation ecosystems, where appropriate**_ that support and/or carry out

research and innovation, provided that desired impacts can be achieved more effectively in

partnership than by the Union alone.

8571/19 ID/mv 16

# ANNEX GIP.2 EN

(17) The Programme should strengthen cooperation between European Partnerships and private

and/or public sector partners at the international level including by joining up research and

innovation programmes and cross-border investment in research and innovation bringing

mutual benefits to people and businesses while ensuring that the _**Union**_ can uphold its

_**(17a)**_ _**'FET Flagships' have proven to be an effective and efficient instrument, delivering**_

_**benefits for society in a joint, coordinated effort by the Union and its Member States.**_

_**Activities carried out within the FET Flagships on Graphene, the Human Brain Project**_

_**and Quantum Technology, which are supported under Horizon 2020, will continue**_

_**being supported under Horizon Europe through calls for proposals included in the work**_

_**programme. Preparatory actions supported under the FET Flagships part of Horizon**_

_**2020 will feed the Strategic Planning process under Horizon Europe and inform the**_

_**work on missions, co-funded/co-programmed partnerships and regular calls for**_

_**proposals.**_

(18) The Joint Research Centre (JRC) should continue to provide Union policies with

independent customer-driven scientific evidence and technical support throughout the

whole policy cycle. The direct actions of the JRC should be implemented in a flexible,

efficient and transparent manner, taking into account the relevant needs of the users of the

JRC _**, the budgetary constraints**_ and the needs of Union policies, and ensuring the

protection of the financial interests of the Union. The JRC should continue to generate

additional resources.

8571/19 ID/mv 17

# ANNEX GIP.2 EN

(19) The pillar ' _**Innovative Europe**_ ' should establish a series of measures for integrated support

to the needs of entrepreneurs and _**research-driven**_ entrepreneurship aiming at realising and

accelerating breakthrough innovation for rapid market growth _**as well as promoting the**_

_**Union’s technological autonomy in strategic areas**_ . It should attract innovative

companies _**, including SMEs and start-ups,**_ with potential for scaling up at international

and at Union level and offer fast, flexible grants and co-investments, including with private

investors. These objectives should be pursued through the creation of a European

Innovation Council (EIC). This Pillar should also support the European Institute of

Innovation and Technology (EIT)) _**, the EIT Regional Innovation Scheme**_ and European

innovation ecosystems at large _**, throughout the Union**_, notably through co-funding

partnerships with national and regional innovation support actors _**, both public and private**_ .

8571/19 ID/mv 18

# ANNEX GIP.2 EN

(20) _**In order to address the need to support investment in higher-risk and non-linear**_

_**activities such as research and innovation, it is essential that Horizon Europe, in**_

_**particular the EIC, as well as the EIT with its KICs, work in synergy with the financial**_

_**products to be deployed under InvestEU. In that regard, the experience gained from the**_

financial instruments _**deployed under Horizon 2020 such as InnovFin and the loan**_

guarantee _**for SMEs, should serve as a strong basis to deliver this targeted**_ support _**EIC**_

_**should develop strategic intelligence and real time evaluation activities in order to timely**_

_**manage and coordinate its various actions**_ .

_**(21)**_ _**The EIC, together with other parts of the Horizon Europe, should stimulate all forms of**_

_**innovation ranging from incremental to breakthrough and disruptive innovation**_

–
_**targeting especially market-creating innovation.**_ The EIC through its instruments

Pathfinder and Accelerator – should aim _**to identify, develop and deploy high risk**_

innovations _**of all kinds including incremental with a main focus on breakthrough,**_

_**disruptive**_ and _**deep-tech innovations that have the potential to become market-creating**_

_**innovations**_ . Through coherent and streamlined support _**,**_ the EIC should fill the current

vacuum in public support _**an**_ private investment for breakthrough innovation. The

instruments of the EIC call for dedicated legal and management features in order to reflect

its objectives, in particular market deployment activities.

_**(21a)**_ _**Within the meaning of this Regulation and in particular for the activities carried out**_

_**under the EIC, a start-up is an SME in the early stage in its life cycle (including**_

_**university spin-offs), which aims at innovative solutions and a scalable business model,**_

_**and which is autonomous within the meaning of Article 3 of the Annex of Commission**_

_**Recommendation 2003/361/EC**_ _**[1]**_ _**; and a 'mid-cap' is a company that is not a micro,**_

_**small- and medium-sized enterprise as defined in Commission Recommendation**_

_**2003/361/EC and that has a number of employees between 250 and 3000 where the staff**_

_**headcount is calculated in accordance with Articles 3, 4, 5, and 6 of Title I of the Annex**_

_**of that Recommendation; a small mid-cap is a mid-cap that has a number of employees**_

_**up to 499**_ _._

**1** Commission Recommendation 2003/361/EC of 6 May 2003 concerning the definition of
micro, small and  medium-sized enterprises (OJ L 124, 20.5.2003, p. 36).

8571/19 ID/mv 19

# ANNEX GIP.2 EN

(22) Through EIC blended finance, the _**EIC**_ Accelerator should bridge the “valley of death”

between research, pre-mass commercialisation and the scaling-up of companies. In

particular, the Accelerator should provide support to operations presenting such

technological or market risks that they are not considered as bankable and cannot leverage

significant investments from the market, hence complementing the InvestEU programme

established by Regulation … [1] .

_**(22a)**_ _**SMEs constitute a significant source of innovation and growth in Europe. Therefore, a**_

_**strong participation of SMEs as defined in Commission Recommendation 2003/361/EC**_

_**is needed in Horizon Europe. Building on best practices from Horizon 2020, Horizon**_

_**Europe should continue to encourage SMEs participation to the Framework Programme**_

_**in an integrated manner.**_

_**(22b)**_ _**While blended finance should be the main use of the EIC Accelerator budget, for the**_

_**purpose of article 43, the grant-only support of the EIC Accelerator to SMEs, including**_

_**start-ups, should correspond to that under the SME instrument budget of the previous**_

_**Framework Programme Horizon 2020 established by Regulation (EU) n° 1291/2013 of**_

_**the European Parliament and the Council**_ _**[2]**_ _**.**_

_**(22c)**_ _**In close synergy with InvestEU, the EIC Accelerator, in its blended finance and equity**_

_**financial support forms, should finance SMEs, including start-ups, and, in exceptional**_

_**cases, projects run by small mid-caps, which are either not yet able to generate revenues,**_

_**or not yet profitable, or not yet able to attract sufficient investments to implement fully**_

_**their projects' business plan. Such eligible entities will be considered as non-bankable,**_

_**while a part of their investment needs could have been or could be provided by one or**_

_**several investors such as a private or public bank, a family office, a venture capital fund,**_

_**a business angel, etc. In this way, overcoming a market failure, the EIC Accelerator will**_

_**finance promising but not yet bankable entities carrying out breakthrough market**_

_1_

**2** _**The following Commission declaration is expected to be published in the OJ C series once**_
_**the final text of the Regulation is adopted:**_
_**“The implementation of the EIC Accelerator shall comply with the terms established in article**_

_**43.1 and recital [X] of the Horizon Europe Regulation”.**_

8571/19 ID/mv 20

# ANNEX GIP.2 EN

_**creating innovation projects. Once they will become bankable, those projects may, in a**_

_**later stage of their development, be financed under InvestEU.**_

(23) The EIT, primarily through its Knowledge and Innovation Communities (KICs) _**and the**_

_**EIT Regional Innovation Scheme**_ should aim at strengthening innovation ecosystems _**for**_

_**the development of an overall Union capacity for innovation**_ that tackle global

challenges, by fostering the integration of business, research, higher education and

entrepreneurship. _**In line with its founding act, the EIT Regulation**_ _**[1 ]**_ _**and the Strategic**_

_**Innovation Agenda of the EIT**_ _**[2]**_ _**,**_ the EIT should foster innovation in its activities and

should support the integration of higher education within the innovation ecosystem, in

particular by: stimulating entrepreneurial education, fostering strong non-disciplinary

collaborations between industry and academia; and identifying prospective skills for future

innovators to address global challenges, which includes advanced digital and innovation

skills. Support schemes provided by the EIT should benefit to EIC beneficiaries, while

start-ups emerging from EIT KICs should have _**fast-track**_ access to EIC actions. While the

EIT’s focus on innovation ecosystems should make it naturally fit within the pillar

' _**Innovative Europe**_ ' _**, it should also support all other pillars, as appropriate**_, the planning

of its KICs should be aligned through the strategic planning process with the pillar 'Global

Challenges and _**European**_ Industrial Competitiveness'. _**Duplication between KICs and**_

_**other instruments in the same field, in particular other Partnerships, should be avoided.**_

**1** _**Regulation (EU) 294/2008 of the European Parliament and of the Council of 11 March**_
_**2008 (OJ L97/1, 9.4.2008), as amended by Regulation (EU) 1292/2013 of the European**_
_**Parliament and of the Council of 11 December 2013 (OJ L347/174, 20.12.2013.**_
**2** _**Regulation (EU) of the European Parliament and of the Council.**_

8571/19 ID/mv 21

# ANNEX GIP.2 EN

(24) Ensuring and preserving a level playing field for companies that compete in a given market

should be a key requirement for breakthrough or disruptive innovation to flourish thereby

enabling in particular small and medium-size innovators to reap the benefits of their

investment and to capture a share of the market. _**Similarly, a certain degree of openness in**_

_**the innovation scale of funded actions - addressing a large network of beneficiaries -**_

_**may contribute substantially to the building capacity of SMEs, as it provides them with**_

_**the necessary means to attract investments and to thrive.**_

(25) The Programme should promote and integrate cooperation with third countries and

international organisations and initiatives based on _**Union’s**_ interest, _**and**_ mutual _**benefits**_

and global commitments to implement the UN SDGs. International cooperation should aim

to strengthen the Union's _**excellence in**_ research and innovation ▌, attractiveness and

economic and industrial competitiveness, to tackle global challenges, as embodied in the

UN SDGs, and to support the Union's external policies. An approach of general opening

for _**excellence in**_ international participation and targeted international cooperation actions

should be followed, ▌ appropriate eligibility _**criteria, considering different levels of R&I**_

_**capacities,**_ for funding of entities established in low to middle income countries _**need to be**_

_**applied**_ . At the same time, association of third countries to the Programme should be

promoted _**where reciprocity is envisaged and where Union’s interest is safeguarded and**_

_**increased participation of all Member States in the Programme is promoted**_ .

8571/19 ID/mv 22

# ANNEX GIP.2 EN

(26) With the aim of deepening the relationship between science and society and maximising

benefits of their interactions, the Programme should engage and involve citizens and civil

society organisations in co-designing and co-creating responsible research and innovation

_**(RRI)**_ agendas and contents, _**that meet citizens’ and civil society’s concerns, needs and**_

_**expectations,**_ promoting science education, making scientific knowledge publicly

accessible, and facilitating participation _**of**_ citizens and civil society organisations in its

activities. _**The measures taken to improve the involvement of citizens and civil society**_

_**should be monitored.**_

_**(26a)**_ _**Horizon Europe should support new technologies which contribute to overcoming**_

_**obstacles, that prevent the access and the full participation of persons with disabilities**_

_**and which consequently restrain the development of a truly inclusive society.**_

8571/19 ID/mv 23

# ANNEX GIP.2 EN

(27) Pursuant to Article 349 of the TFEU, the Union's outermost regions are entitled to specific

measures (taking into account their structural, social and economic situation) regarding

access to horizontal Union programmes. The Programme should therefore take into

account the specific characteristics of those regions in line with the Commission's

Communication on 'A stronger and renewed strategic partnership with the EU's outermost

regions' (COM (2017) 623 final) as endorsed by the Council on 12 April 2018 _**and where**_

_**possible promote their participation in the Programme.**_

(28) The activities developed under the Programme should aim at eliminating gender

inequalities _**, avoiding gender bias, adequately integrating the gender dimension in**_

_**research and innovation content, aiming at enhancing work-life balance,**_ promoting

equality between women and men _**including equal pay**_ _**principles as referred to in Article**_

_**141(3) of the TFEU and in Directive 2006/54/EC on the implementation of the principle**_

_**of equal opportunities and equal treatment of men and women in matters of employment**_

_**and occupation, as well as ensuring accessibility of researchers with disabilities to**_

research and innovation. ▌

8571/19 ID/mv 24

# ANNEX GIP.2 EN

(29) In light of the specificities of the defence industry sector, the detailed provisions for Union

funding to defence research projects should be fixed in the Regulation … establishing the

European Defence Fund [1] which defines the rules of participation for defence research.

_**Although synergies between Horizon Europe and the**_ European Defence Fund _**could be**_

_**encouraged while avoiding duplication, actions under Horizon Europe**_ should have an

exclusive focus on _**civilian**_ applications.

(30) This Regulation lays down a financial envelope for the Programme. The amount indicated

for the specific programme referred to in Article 1(3)(a) is to constitute the prime reference

amount, within the meaning of [ _reference to be updated as appropriate according to the_

_new inter-institutional agreement:_ point 17 of the Interinstitutional Agreement of 2

December 2013 between the European Parliament, the Council and the Commission on

budgetary discipline, on cooperation in budgetary matters and on sound financial

management [2] ], for the European Parliament and the Council during the annual budgetary

procedure.

(31) Regulation (EU, Euratom) No _**2018/1046 of the European Parliament and of the Council**_

(the ‘Financial Regulation’) _**[ 3]**_ applies to this Programme, unless otherwise specified. It lays

down rules on the implementation of the Union budget, including the rules on grants,

prizes, procurement, indirect implementation, financial assistance, financial instruments

and budgetary guarantees.

**1**

**2** OJ C 373, 20.12.2013, p. 1.
_3_ _**Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of**_
_**18 July 2018 on the financial rules applicable to the general budget of the Union,**_
_**amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013,**_
_**(EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU)**_
_**No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No**_
_**966/2012.**_

8571/19 ID/mv 25

# ANNEX GIP.2 EN

_**(31a)**_ _**Administrative simplification, in particular the reduction of the administrative burden**_

_**for beneficiaries should be continuously sought throughout the Programme. The**_

_**Commission should further simplify its tools and guidance in such a way that they**_

_**impose a minimal burden on beneficiaries. In particular, the Commission should**_

_**consider issuing an abridged version of the guidance.**_

_**(31b)**_ _**In order to ensure that Europe remains at the forefront of global research and**_

_**innovation in the digital field and to take account of the necessity to step up investments**_

_**to benefit from the growing opportunities of digital technologies, sufficient budget**_

_**should be allocated to core digital priorities.**_

8571/19 ID/mv 26

# ANNEX GIP.2 EN

(32) In accordance with the Financial Regulation, Regulation (EU, Euratom) No 883/2013 of

the European Parliament and of the Council [1], Council Regulation (Euratom, EC) No

2988/95 [2],Council Regulation (Euratom, EC) No 2185/96 [3] and Council Regulation (EU)

2017/1939 [4], the financial interests of the Union are to be protected through proportionate

measures, including the prevention, detection, correction and investigation of irregularities,

including fraud, the recovery of funds lost, wrongly paid or incorrectly used and, where

appropriate, the imposition of administrative sanctions. In particular, in accordance with

Regulation (EU, Euratom) No 883/2013 and Regulation (Euratom, EC) No 2185/96 the

European Anti-Fraud Office (OLAF) may carry out administrative investigations,

including on-the-spot checks and inspections, with a view to establishing whether there has

been fraud, corruption or any other illegal activity affecting the financial interests of the

Union. In accordance with Regulation (EU) 2017/1939, the European Public Prosecutor's

Office (EPPO) may investigate and prosecute fraud and other criminal offences affecting

the financial interests of the Union as provided for in Directive (EU) 2017/1371 of the

European Parliament and of the Council [5] . In accordance with the Financial Regulation, any

person or entity receiving Union funds is to fully cooperate in the protection of the Union’s

financial interests, to grant the necessary rights and access to the Commission, OLAF, the

EPPO and the European Court of Auditors (ECA) and to ensure that any third parties

involved in the implementation of Union funds grant equivalent rights.

**1** Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of
11 September 2013 concerning investigations conducted by the European Anti-Fraud Office
(OLAF) and repealing Regulation (EC) No 1073/1999 of the European Parliament and of
the Council and Council Regulation (Euratom) No 1074/1999,(OJ L248, 18.9.2013, p. 1.
**2** Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of
the European Communities financial interests (OJ L 312, 23.12.95, p.1).
**3** Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-thespot checks and inspections carried out by the Commission in order to protect the European
Communities' financial interests against fraud and other irregularities (OJ L292,15.11.96,
p.2).
**4** Council Regulation (EU) 2017/1939 of 12 October 2017 implementing enhanced
cooperation on the establishment of the European Public Prosecutor’s Office (‘the EPPO’)
(OJ L283, 31.10.2017, p.1).
**5** Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on
the fight against fraud to the Union's financial interests by means of criminal law (OJ L 198,
28.7.2017, p. 29).

8571/19 ID/mv 27

# ANNEX GIP.2 EN

(33) Pursuant to [reference to be updated as appropriate according to a new decision on OCTs:

Article 94 of Council Decision 2013/755/EU [1] ], persons and entities established in overseas

countries and territories (OCTs) are eligible for funding subject to the rules and objectives

of the Programme and possible arrangements applicable to the Member State to which the

relevant overseas country or territory is linked. _**The Programme should take due account**_

_**of the specific features of those territories in order to ensure their effective participation**_

_**and to support cooperation and synergies, particularly in the outermost regions as well**_

_**as with third countries in their neighbourhood.**_

(34) Pursuant to paragraph 22 and 23 of the Inter-institutional agreement for Better Law

Making of 13 April 2016, there is a need to evaluate this Programme on the basis of

information collected through specific monitoring requirements, while avoiding

overregulation and administrative burdens, in particular on Member States _**and**_

_**beneficiaries under the Programme.**_ These requirements, where appropriate, can include

measurable indicators, as a basis for evaluating the effects of the Programme on the

ground.

**1** Council Decision 2013/755/EU of 25 November 2013 on the association of the overseas
countries and territories with the European Union (Overseas Association Decision) (OJ L
344, 19.12.2013, p. 1).

8571/19 ID/mv 28

# ANNEX GIP.2 EN

(35) In order to be able to supplement or amend the impact pathway indicators, where

considered necessary, the power to adopt acts in accordance with Article 290 of the Treaty

on the Functioning of the European Union should be delegated to the Commission. It is of

particular importance that the Commission carry out appropriate consultations during its

preparatory work, including at expert level, and that those consultations be conducted in

accordance with the principles laid down in the Interinstitutional Agreement on Better

Law-Making of 13 April 2016. In particular, to ensure equal participation in the

preparation of delegated acts, the European Parliament and the Council receive all

documents at the same time as Member States' experts, and their experts systematically

have access to meetings of Commission expert groups dealing with the preparation of

delegated acts.

(36) Coherence and synergies between Horizon Europe and the EU's Space Programme will

foster a globally competitive and innovative European space sector; reinforce Europe’s

autonomy in accessing and using space in a secure and safe environment; and strengthen

Europe’s role as a global actor. Breakthrough solutions in Horizon Europe will be

supported by data and services made available by the Space Programme.

_**(36a)**_ _**The work programme should take into account the outcome of specific previous projects**_

_**and the state of science, technology and innovation at national, Union and international**_

_**level and of relevant policy, market and societal developments, for a particular action to**_

_**be funded.**_

8571/19 ID/mv 29

# ANNEX GIP.2 EN

(37) The rules for participation and dissemination should adequately reflect the needs of the

Programme taking into account the concerns raised and the recommendations made by

various stakeholders.

(38) Common rules _**and requirement**_ across the Programme should ensure _**simplified and**_

_**common implementing tools including for monitoring and reporting an**_ a coherent

framework which facilitates participation in programmes financially supported by the

budget of the Programme, including participation in programmes managed by funding

bodies such as the EIT, joint undertakings or any other structures under Article 187 TFEU,

and participation in programmes undertaken by Member States pursuant to Article 185

TFEU. _**Adopting**_ specific rules should be _**possible but exceptions must be limited to when**_

_**strictly necessary and duly**_ justified.

(39) Actions which fall within the scope of the Programme should respect fundamental rights

and observe the principles acknowledged in particular by the Charter of Fundamental

Rights of the European Union. Such actions should be in conformity with any legal

obligation including international law and with any relevant Commission decisions such as

the Commission notice of 28 June 2013 [1], as well as with ethical principles, which include

avoiding any breach of research integrity. _**The opinions of the European Group on Ethics**_

_**in Science and New Technologies, the European Union Agency for Fundamental Rights**_

_**and the European Data Protection Supervisor should be taken into account.**_ Article 13

TFEU should also be taken into account in research activities, and the use of animals in

research and testing should be reduced, with a view ultimately to replacing their use.

**1** OJ C 205, 19.7.2013, p. 9.

8571/19 ID/mv 30

# ANNEX GIP.2 EN

(40) In line with the objectives of international cooperation as set out in Articles 180 and 186

TFEU, the participation of legal entities established in third countries and of international

organisations should be promoted _**in the Union’s scientific, societal, economic and**_

_**technological interests**_ . The implementation of the Programme should be in conformity

with the measures adopted in accordance with Articles 75 and 215 TFEU and should be in

compliance with international law. For actions related to Union strategic assets, interests,

autonomy or security, the participation to specific actions of the Programme may be

limited to entities established in Member States only, or to entities established in specified

associated or other third countries in addition to Member States.

_**(41)**_ _**Acknowledging climate change as one of the biggest global and societal challenges and**_

reflecting the importance of tackling climate change in line with the Union's commitments

to implement the Paris Agreement and the United Nations Sustainable Development Goals,

this Programme will contribute to mainstream climate actions and to the achievement of an

overall target of _**at least**_ 25 % of the EU budget expenditures supporting climate objectives

_**over the MFF 2021-2027 period, and an annual target of 30 % as soon as possible and**_

_**at the latest by 2027**_ . _**Climate mainstreaming shall be adequately integrated in research**_

_**and innovation content and applied at all stages of the research cycle.**_

_**(41a)**_ _**In the context of the impact pathway related to climate, the Commission will report on**_

_**outputs, innovations and aggregated estimated effects of projects that are climate-**_

_**relevant, including by Programme part and by implementation mode. In its analysis the**_

_**Commission should take account of the long-term economic, societal and**_

_**environmental costs and benefits to European citizen resulting from Programme**_

_**activities including the uptake of innovative climate mitigation and adaptation solutions,**_

_**estimated impacts on jobs and company creation, economic growth in and**_

_**competitiveness, clean energy, health to well-being (including air, soil and water**_

_**quality). The results of this impact analysis should be made public, assessed in the**_

_**context of Europe´s climate and energy goals and feedback into the subsequent strategic**_

_**planning process and future work programmes.**_

8571/19 ID/mv 31

# ANNEX GIP.2 EN

(42) Horizontal financial rules adopted by the European Parliament and the Council on the basis

of Article 322 of the Treaty on the Functioning of the European Union apply to this

Regulation. These rules are laid down in the Financial Regulation and determine in

particular the procedure for establishing and implementing the budget through grants,

procurement, prizes, indirect implementation, and provide for checks on the responsibility

of financial actors. Rules adopted on the basis of Article 322 TFEU also concern the

protection of the Union's budget in case of generalised deficiencies as regards the rule of

law in the Member States, as the respect for the rule of law is an essential precondition for

sound financial management and effective EU funding.

(43) Use of sensitive background information or access by unauthorized individuals to sensitive

results _**and research data**_ may have an adverse impact on the interests of the Union or of

one or more of the Member States. Thus handling of confidential data and classified

information should be governed by all relevant Union law, including the Institutions'

internal rules, such as Commission Decision (EU, Euratom) 2015/444 [1], which lays down

the provisions on security rules for protecting EU classified information.

**▌**

**1** Commission Decision (EU, Euratom) 2015/444 of 13 March 2015 on the security rules for
protecting EU classified information (OJ L 72, 17.3.2015, p. 53).

8571/19 ID/mv 32

# ANNEX GIP.2 EN

(45) It is _**necessary**_ to establish the terms and conditions for providing Union funding to

participants in actions under the Programme. Grants _**will be the main type of financing**_

_**within the Programme. Other types of financing should be chosen on the basis of their**_

_**ability to achieve the specific objectives of the actions and to deliver results,**_ taking into

account _**in particular the costs of controls, the administrative burden, and the expected**_

_**risk of non-compliance. For grants, this should include a consideration of the use of**_

_**lump sums, flat rates and scales of unit costs as**_ set out in the Financial Regulation ▌,

with _**a**_ view to further simplification. _**Before any new costs reimbursement system could**_

_**be deemed a real simplification for the beneficiaries, it should be preceded by an**_

_**extensive and positive evaluation.**_

**▌**

(47) In accordance with _**Regulation (EU, Euratom) No**_ _**2018/1046 of the European**_

_**Parliament and of the Council**_ _**(**_ the _**‘**_ Financial Regulation _**’)**_ _**[1]**_, the Programme should

provide the basis for a wider acceptance of the usual cost accounting practices of the

beneficiaries as regards personnel costs and unit costs for internally invoiced goods and

services _**(including for large research infrastructures as understood under Horizon**_

_**2020)**_ _._ _**The use of unit costs for internally invoiced goods and services calculated in**_

_**accordance with the usual accounting practices of the beneficiaries combining actual**_

_**direct costs and indirect costs should be an option which could be chosen by all**_

_**beneficiaries. In this respect, beneficiaries should be able to include actual indirect costs**_

_**calculated on the basis of allocation keys in such unit costs for internally invoiced goods**_

_**and services.**_

(48) The current system of reimbursement of actual personnel costs should be further simplified

building on the project-based remuneration approach developed under Horizon 2020 and

_1_ _**Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of**_
_**18 July 2018 on the financial rules applicable to the general budget of the Union,**_
_**amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013,**_
_**(EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU)**_
_**No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No**_
_**966/2012.**_

8571/19 ID/mv 33

# ANNEX GIP.2 EN

further aligned to the Financial Regulation _**, aiming to reduce the**_ _**remuneration gap**_

_**between EU researchers involved in the Programme**_ .

8571/19 ID/mv 34

# ANNEX GIP.2 EN

(49) The participant Guarantee Fund set up under Horizon 2020 and managed by the

Commission has proved to be an important safeguard mechanism which mitigates the risks

associated with the amounts due and not reimbursed by defaulting participants. Therefore,

the Beneficiary Guarantee Fund, renamed Mutual Insurance Mechanism ("the

Mechanism") should be continued and enlarged to other funding bodies in particular to

initiatives pursuant to Article 185 of the TFEU. The Mechanism should be opened to

beneficiaries of any other directly managed Union programme.

(50) Rules governing the exploitation and dissemination of results should be laid down to ensure

that beneficiaries protect, exploit, disseminate and provide access to those results as

appropriate. More emphasis should be given to exploiting results _**and the Commission**_

_**should identify and help maximise opportunities for beneficiaries**_ _**to exploit results,**_ _**in**_

_**particular**_ in the Union. _**Exploitation should be in consideration of the principles of this**_

_**programme, including promoting innovation in the Union and strengthening the**_

_**European Research Area.**_

8571/19 ID/mv 35

# ANNEX GIP.2 EN

(51) The key elements of the proposal evaluation and selection system of the predecessor

programme Horizon 2020 with its particular focus on excellence _**, ‘impact’ and ‘quality**_

_**and efficiency of implementation’ criteria**_ should be maintained. Proposals should

continue to be selected based on the evaluation made by independent experts _**stemming**_

_**from as many Member States as possible. The Commission should organise anonymous**_

_**evaluation where appropriate and analyse its results in order to avoid selection bias**_ .

Where relevant, the necessity to ensure the overall coherence of the portfolio of projects

should be taken into account _**by independent experts**_ .

(52) _**Systematic**_ cross-reliance on audits and assessments – ▌with other Union programmes –

should be _**implemented in accordance with Article 127 of the Financial Regulation for**_

_**all parts of the Programme,**_ in order to reduce administrative burden for beneficiaries of

Union funds. Cross reliance should be explicitly provided for by considering also other

elements of assurance such as systems and processes audits.

(53) Specific challenges in the _**areas**_ of research _**and**_ innovation should be addressed by prizes,

including through common or joint prizes where appropriate, organised by the Commission

or funding body with other Union bodies, third countries, international organisations or

non-profit legal entities. _**In particular, prizes should be awarded to projects attracting**_

_**scientists to widening countries as well as to successful projects to increase their**_

_**visibility and allow to increase the promotion of Union funded actions.**_

8571/19 ID/mv 36

# ANNEX GIP.2 EN

(54) ▌ Financing _**types**_ and the methods of implementation under this Regulation shall be

chosen on the basis of their ability to achieve the specific objectives of the actions and to

deliver results, taking into account, in particular, the costs of controls, the administrative

burden, and the expected risk of non-compliance. _**This should**_ include consideration of the

use of lump sums, flat rates and scales of unit costs,

8571/19 ID/mv 37

# ANNEX GIP.2 EN

HAVE ADOPTED THIS REGULATION:

**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 _**and determines the framework governing Union support to**_

_**research and innovation activities**_ .

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 [1] **▌** ;

_**(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.**_

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.

_**The EIT shall implement the Programme in line with its strategic objectives for the period 2021-**_

_**2027, as laid down in the Strategic Innovation Agenda of the EIT, taking into account the**_

_**strategic planning.**_

**1**

8571/19 ID/mv 38

# ANNEX GIP.2 EN

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 _**[1]**_

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

Regulation];

(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 _**, universities**_, research organisations, bodies with a public

service mission at local, regional, national or international level or civil society

organisations including foundations _**and NGOs**_ ), 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**_ ;

**1** _**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.**_

8571/19 ID/mv 39

# ANNEX GIP.2 EN

_**(4a)**_ _**'open science' means an approach to the scientific process based on open cooperative**_

_**work, tools and diffusing knowledge, including the elements of article 10.**_

(5) 'mission' means a portfolio of _**excellence-based and impact-driven R&I**_ 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 and policy-making through science and technology, and**_

–
_**be relevant for a significant part of the European population and 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 _**under terms and conditions laid**_

_**down in accordance with this Regulation;**_

(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: (i)

held by beneficiaries prior to their accession to the action; and (ii) identified by the

beneficiaries in _**a written agreement**_ 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, _**including**_ _**inter alia, commercial exploitation**_

8571/19 ID/mv 40

# ANNEX GIP.2 EN

_**such as**_ developing, creating, manufacturing and marketing a product or process, ▌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;

_**(15a)**_ _**”widening countries”/“low R&I performing countries” means those countries where**_

_**legal entities need to be established in order to be eligible as coordinators under**_

_**‘widening participation and spreading excellence’ strand of the Widening Participation**_

_**and Strengthening ERA’ part of Horizon Europe.**_ _**From the EU Member States, these**_

_**countries are Bulgaria, Croatia, Cyprus, Czech Republic, Estonia, Greece, Hungary,**_

_**Latvia, Lithuania, Malta, Poland, Portugal, Romania, Slovakia and Slovenia, for the**_

_**whole duration of the Programme. For associated countries, the list of eligible countries**_

_**will be defined based on an indicator and published in the Work Programme. On the**_

_**basis of Article 349 TFEU, legal entities from Outermost Regions will be also fully**_

_**eligible as coordinators under this strand.**_

(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;

8571/19 ID/mv 41

# ANNEX GIP.2 EN

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

_**Recommendation 2003/361/EC;**_

(17) 'small mid-cap' means an entity that is not a micro-, small- and medium-sized enterprise

(‘SME’) as defined in Commission Recommendation _**2003/361/EC**_ employing up to 499

employees ▌where the staff headcount is calculated in accordance with Articles 3, 4, 5 and

6 of Title I of the Annex of that Recommendation;

(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 generated by the action to which 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 _**, but**_

_**which might receive support from other Union or national sources of funding;**_

_**(19a)**_ _**‘strategic R&I Plan’ means an implementing act laying out a strategy for realising**_

_**content in the work programme covering a maximum period of four years, following a**_

_**broad mandatory multi-stakeholder consultation process. It defines the priorities,**_

_**suitable types of action and forms of implementation to use.**_

(20) “work programme” means the document adopted by the Commission for the

implementation of the specific programme _**[1]**_ in accordance with its Article 12 or the

equivalent document in content and structure adopted by a funding body.

(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;

_1_ _**OJ…**_

8571/19 ID/mv 42

# ANNEX GIP.2 EN

(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 a **s** 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 ▌blended finance” means financial support to _**a programme**_ _**to provide**_

_**support to**_ innovation and market deployment activities, consisting in a specific

combination of a grant or a reimbursable advance with an investment in equity _**or any**_

_**other repayable form of support**_ _;_

_**(25a)**_ _**“EIC blended finance” means direct financial support delivered under the EIC to an**_

_**innovation and market deployment action, consisting in a specific combination of a**_

_**grant or a reimbursable advance with an investment in equity or any other repayable**_

_**form of support;”**_

( _**25a)**_ _**‘research and innovation action’ means an 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;**_

_**(25b)**_ _**‘innovation action’ means an 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;**_

8571/19 ID/mv 43

# ANNEX GIP.2 EN

_**-**_
_**(25c)**_ _**‘ERC frontier research (including ERC Proof of Concept)’ means principal investigator**_

_**led research actions, hosted by ERC only single or multiple beneficiaries;**_

_**(25d)**_ _**‘training and mobility action’ means an action geared towards the improvement of skills,**_

_**knowledge and career prospects of researchers based on mobility between countries,**_

_**and, if relevant, between sectors or disciplines;**_

_**(25e)**_ _**‘programme co-funding action’ means an 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;**_

_**(25f)**_ _**‘pre-commercial procurement action’ means an action with the primary aim of realising**_

_**pre-commercial procurement implemented by beneficiaries that are contracting**_

_**authorities or contracting entities;**_

_**(25g)**_ _**‘public procurement of innovative solutions action’ means an 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;**_

_**(25h)**_ _**‘coordination and support action’ means an action contributing to the objectives of the**_

_**Programme, excluding research and innovation activities, except when undertaken**_

_**under the component "widening participation and spreading excellence" of the part**_

_**"Widening Participation and strengthening the European Research Area"; and 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;**_

_**(25i)**_ _**"Inducement prize" means a prize to spur investment in a given direction, by specifying**_

_**a target prior to the performance of the work**_

8571/19 ID/mv 44

# ANNEX GIP.2 EN

**(** _**25j)**_ _**"Recognition prize" in prize to reward past achievements and outstanding work after it**_

_**has been performed**_

_**(25k)**_ _**"Innovation and market deployment action" means and action 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);**_

**(** _**25l)**_ _**"Indirect actions" means research and innovation activities to which the Union provides**_

_**financial support and which are undertaken by participants;**_

**(** _**25m)**_ _**"Direct actions" means research and innovation activities undertaken by the**_

_**Commission through its Joint Research Centre (JRC).**_

**(** _**27)**_ _**'procurement’ means procurement as defined in Article 2(49) of the Financial**_

_**Regulation;**_

_**(28)**_ _**'affiliated entity’ means any legal entity as defined in Article 187(1) of the Financial**_

_**Regulation;**_

_**(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;**_

_▌_

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 and contribute to _**the realisation of EU objectives and policies,**_

_**contribute to**_ tackling global challenges, including the Sustainable Development Goals _**by**_

8571/19 ID/mv 45

# ANNEX GIP.2 EN

_**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 _**develop, promote and advance scientific excellence,**_ support the creation and

diffusion of high-quality new _**fundamental and applied**_ knowledge, skills,

technologies and solutions _**, 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**_ ;

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

developing, supporting and implementing Union policies and support the _**access to**_

_**and**_ uptake of innovative solutions in _**European**_ industry _**, notably in SMEs,**_ and

society to address global challenges _**, including climate change and the Sustainable**_

_**Development Goals**_ ;

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

_**demonstration and knowledge and technology transfer,**_ strengthen ▌deployment

and _**exploitation**_ of innovative solutions;

(d) to optimise the Programme's delivery for _**strengthening and increasing the**_ impact

_**and attractiveness of the**_ European Research Area _**, to foster the excellence-based**_

_**participations from all Member States, including low R&I performing 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:

8571/19 ID/mv 46

# ANNEX GIP.2 EN

(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, creativity and inclusive society';**_

_**(ba)**_ _**cluster ‘Civil Security for Society’;**_

_**(c)**_ cluster 'Digital, ▌Industry _**and Space**_ ';

(d) cluster 'Climate, Energy and Mobility';

_**(f)**_ cluster 'Food, _**Bioeconomy,**_ Natural Resources, _**Agriculture**_ 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**_ _**spreading**_ excellence;

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

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

8571/19 ID/mv 47

# ANNEX GIP.2 EN

Article 5 [1]

Defense research _**and development**_

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 _**research and development**_, with the _**following objectives and**_

_**broad lines of activities:**_

_**-**_ _**activities aiming to foster the competitiveness, efficiency and innovation capacity**_

_**of the European defence, technological and industrial base.**_

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).

Article 6 _**[2]**_

_**Strategic planning and**_ _**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.

**1** _**The following Commission declaration is expected to be published in the OJ C series once**_
_**the final text of this Regulation is adopted:**_
_**“The Commission takes note of the compromise reached by the co-legislators on the wording of**_

_**Article 5. In the Commission’s understanding the specific programme on defence**_
_**research mentioned in Article 1(3)(b) is limited only to the research actions under the**_
_**future European Defence Fund while the development actions are considered outside the**_
_**scope of this Regulation”.**_
_2_ _**A Commission declaration is expected to be published in the OJ C series once the final**_
_**text of the Regulation is adopted, along these lines: "Upon request, the Commission**_
_**intends to exchange views with the responsible Committee in the European Parliament**_
_**on:(i) the list of potential partnerships candidates based on the Articles 185 and 187**_
_**TFEU which will be covered by (inception) impact assessments; (ii) the list of tentative**_
_**missions identified by the Mission boards; (iii)the results of the Strategic Plan before its**_
_**formal adoption, and (iv) it will present and share documents related to work**_
_**programmes."**_

8571/19 ID/mv 48

# ANNEX GIP.2 EN

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

the Financial Regulation, in particular grants _**which shall be**_ _**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**_ .

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 _**Article**_

_**2**_ . _**The**_ forms of funding _**, referred to in paragraph 2,**_ 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 _**and the EIT's KICs**_ shall be _**supported by**_

a transparent and strategic _**▌ planning of research and innovation activities as laid down**_

_**in the specific programme,**_ in particular for the pillar 'Global Challenges and _**European**_

Industrial Competitiveness _**'**_ **▌** and _**cover also**_ relevant _**activities in other pillars and the**_

_**Widening Participation and Strengthening the European Research Area part.**_

_**The Commission shall ensure early involvement of the Member States and extensive**_

_**exchanges with the European Parliament, complemented by consultation with**_

_**stakeholders and the public at large.**_

_**The Strategic Planning shall ensure alignment with other relevant Union programmes**_

_**and consistency with EU priorities and commitments and increase complementarity and**_

_**synergies with national and regional funding programmes and priorities, thereby**_

_**strengthening the ERA. Areas for possible missions and areas for possible**_

_**institutionalised European Partnerships shall be established in Annex Va.**_

_**6a.**_ _**Where appropriate, in order to allow a faster access to funds for small collaborative**_

_**consortia, a Fast Track to Research and Innovation Procedure (FTRI) may be proposed**_

8571/19 ID/mv 49

# ANNEX GIP.2 EN

_**under some of the calls for proposals dedicated to select research and / or innovation**_

_**actions Under the Global Challenges and European Industrial Competitiveness and the**_

_**European Innovation Council Pathfinder parts of the Framework Programme**_ **.**

_**A call under the FTRI Procedure shall have the following cumulative characteristics:**_

_**- bottom-up calls for proposals**_

_**- a shorter time-to-grant, not exceeding 6 months;**_

_**- a support provided only to small collaborative consortia composed of maximum 6**_

_**different and independent eligible legal entities;**_

_**- a maximum financial support per consortium not exceeding EUR 2.5 million.**_

_**The work programme shall identify the calls using the FTRI Procedure.**_

7. Horizon Europe activities shall be _▌_ delivered through _**open, competitive**_ calls for proposals _,_

_**including within**_ missions and European Partnerships _**, except for the activities referred to in**_

_**Article 39 on Prizes**_ .

_▌_

_**Article 6a**_

_**Principles of the Programme**_

1. _**Research and innovation activities carried out under the specific Programme referred to**_

_**in Article 1(3)(a) and under the EIT shall have an exclusive focus on civil applications.**_

_**Budgetary transfers between the amount allocated to the specific programme referred to**_

_**in Article 1(3)(a) and the EIT and the amount allocated to the specific programme**_

_**referred to in Article 1(3)(b) shall not be allowed and unnecessary duplication between**_

_**the two programmes shall be avoided.**_

_**2.**_ _**Horizon Europe shall ensure a multidisciplinary approach and shall foresee, where**_

_**appropriate, the integration of social sciences and humanities across all clusters and**_

_**activities developed under the Programme, including specific calls on SSH related**_

_**topics.**_

8571/19 ID/mv 50

# ANNEX GIP.2 EN

_**3.**_ _**The collaborative parts of the Programme shall ensure a balance between lower and**_

_**higher TRLs thereby covering the whole value chain.**_

_**3a.**_ _**The Programme shall ensure the effective promotion and integration of cooperation**_

_**with third countries and international organisations and initiatives based on mutual**_

_**benefits, EU interests, international commitments and, where appropriate, reciprocity.**_

_**4.**_ _**The Programme shall assist widening countries to increase participation in Horizon**_

_**Europe and to promote broad geographical coverage in collaborative projects, including**_

_**through spreading scientific excellence, boosting new collaborative links, stimulating**_

_**brain-circulation as well as through the implementation of Articles 20(3) and 45(4).**_

_**Those efforts shall be mirrored by proportional measures by Member States, including**_

_**on setting attractive salaries for researchers, with the support of Union, national and**_

_**regional funds. Particular attention shall be paid to geographical balance, subject to the**_

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

_**bodies such as boards and expert groups, without undermining the excellence criteria.**_

_**5.**_ _**The Programme shall ensure the effective promotion of equal opportunities for all, and**_

_**the implementation of gender mainstreaming, and of the gender dimension in the**_

_**research and innovation content and shall aim to address the causes of gender**_

_**imbalance. Particular attention shall be paid to ensuring to the extent possible gender**_

_**balance, in evaluation panels and in other relevant advisory bodies such as boards and**_

_**expert groups.**_

_**5a.**_ _**Horizon Europe shall be implemented in synergy with other Union funding programmes**_

_**while seeking maximal administrative simplification. A non-exhaustive list of synergies**_

_**with other Union funding programmes is included in Annex IV.**_

_**5b.**_ _**The Programme contributes to increasing public and private investment in R&I in**_

_**Member States thereby helping to reach an overall investment of at least 3% of Union**_

_**gross domestic product (GDP) in research and development.**_

_**6.**_ _**The Commission when implementing the programme shall aim at continuous**_

_**administrative simplification and reduction of the burden for the applicants and**_

_**beneficiaries.**_

8571/19 ID/mv 51

# ANNEX GIP.2 EN

_**7.**_ _**As part of the general Union objective of mainstreaming climate actions into EU**_

_**sectoral policies and EU funds, actions under this Programme shall contribute at least**_

_**35% of the expenditure to climate objectives where appropriate. Climate mainstreaming**_

_**shall be adequately integrated in research and innovation content.**_

_**8.**_ _**The programme shall promote co-creation and co-design through engagement of**_

_**citizens and civil society.**_

_**9.**_ _**The programme shall ensure transparency and accountability of public funding in**_

_**research and innovation projects, thereby preserving the public interest.**_

_**10.**_ _**The Commission or the relevant funding body shall ensure that sufficient guidance and**_

_**information is made available to all potential participants at the time of publication of**_

_**the call for proposals, in particular the applicable model grant agreement.**_

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 _**as well as complementary actions carried out under other Union**_

_**funding programmes**_ **.** _**Missions shall allow for competing solutions, resulting in pan-**_

_**European added value and impact.**_

2. The missions shall be _**defined and**_ implemented in accordance with _**the**_ _**Regulation**_ _**and**_

the Specific Programme _**, ensuring the active and early involvement of the Member States**_

_**and extensive exchanges with the European Parliament**_ _._ _**The missions, their objectives,**_

_**budget, targets, scope, indicators and milestones shall be**_ _**identified**_ _**in the Strategic R&I**_

_**Plans or the Work Programmes as appropriate**_ . Evaluation _**of proposals under the**_

_**missions**_ shall be carried out in accordance with Article 26.

_**2a.**_ _**During the first three years of the programme, a maximum of 10% of the annual budget**_

_**of Pillar II shall be programmed through specific calls for implementing the missions.**_

_**For the remaining part of the programme, and only after a positive assessment of the**_

_**mission selection and management process, this percentage may be increased. The**_

8571/19 ID/mv 52

# ANNEX GIP.2 EN

_**Commission shall communicate the total budgetary share of each work programme**_

_**dedicated to missions.**_

3. Missions shall:

(a) _**using SDGs as sources for their design and implementation,**_ have a clear _**research**_

_**and innovation content,**_ EU-added value **,** and contribute to reaching Union priorities

_**and commitments and Horizon Europe programme objectives laid down in Article**_

_**3**_ ;

_**(aa) cover areas of common European relevance, be inclusive, encourage broad**_

_**engagement and active participation of various types of stakeholders from public**_

_**and private sectors, including citizens and end-users, and deliver R&I results that**_

_**could benefit all Member States;**_

(b) be bold and inspirational _**,**_ hence have wide _**, scientific, technological,**_ societal _**,**_

economic _**, environmental or**_ _**policy**_ relevance _**and impact**_ ;

(c) indicate a clear direction _**and objectives**_ and be targeted, measurable **,** time-bound _**and**_

_**have a clear budget frame**_ ;

(d) _**be selected in a transparent manner and**_ be centered on ambitious _**, excellence-**_

_**based and impact-driven**_ but realistic _**goals and**_ research, _**development and**_

innovation activities;

_**(da) have the necessary scope, scale and mobilization of the resources and leverage of**_

_**additional public and private funds required to deliver the mission outcome;**_

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

_**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**_ .

_**(fa) benefit from synergies in a transparent manner with other Union programmes as**_

_**well as with national and, where relevant, regional innovation ecosystems.**_

8571/19 ID/mv 53

# ANNEX GIP.2 EN

_**4.**_ _**The Commission shall monitor and evaluate each mission in accordance with Articles 45**_

_**and 47 and Annex V to this Regulation, including progress towards short, medium and**_

_**long-term targets, covering implementation, monitoring and phasing-out of the missions.**_

_**An assessment 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. The results of this assessment**_

_**shall be made public and shall include, but not limited to, the analysis of their selection**_

_**process and of their governance, budget, focus and progress to date.**_

_**Article 7a**_

_**The European Innovation Council**_

_**1.**_ _**The Commission shall establish a European Innovation Council (EIC) as a centrally-**_

_**managed "one stop shop" for implementing actions under Pillar III 'Innovative Europe‘**_

_**which relate to the EIC. The EIC shall mainly focus on breakthrough and disruptive**_

_**innovation, targeting especially market-creating innovation, while also supporting all**_

_**types of innovation, including incremental. The EIC shall operate according to the**_

_**following principles: clear EU added value, autonomy, ability to take risk, efficiency,**_

_**effectiveness, transparency and accountability.**_

_**2.**_ _**The EIC shall be open to all types of innovators including from individuals to**_

_**universities, research organisations and companies (SMEs including start-ups and, in**_

_**exceptional cases, small mid-caps) and from single beneficiaries to multi-disciplinary**_

_**consortia. At least 70% of EIC budget shall be dedicated to SMEs, including start-ups.**_

_**3.**_ _**The EIC Board and management features of the EIC are defined in Decision (EU)...**_

_**[Specific Programme] and its annexes.**_

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

8571/19 ID/mv 54

# ANNEX GIP.2 EN

_**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);

(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);

(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, except in duly justified cases. In case of central**_

_**financial management, project level contributions from one participating state will**_

_**be made on the basis of the funding requested in proposals from entities**_

_**established in that 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.**_

2. European Partnerships shall:

8571/19 ID/mv 55

# ANNEX GIP.2 EN

(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 _**and**_ _**when compared to other forms of support of the Framework programme.**_

_**Those parts shall have an appropriate share of the budget of Horizon Europe. The**_

_**majority of the budget in pillar II shall be allocated to actions outside of European**_

_**partnerships**_ ;

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

_**within and for Europe,**_ _**strong**_ leverage effect _**on sufficient scale**_, long-term

_**commitments**_ 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.

_**2.a.**_ _**European Partnerships according to Article 8(1)(a and b) of this Regulation shall be**_

_**identified in Strategic R&I Plans before being implemented in work programmes.**_

Provisions and criteria for their selection, implementation, monitoring, evaluation and phasing-out

are set out in Annex III.

_**Article 8a**_

_**Review of missions and partnership areas**_

_**No later than 2023, the Commission shall carry out a review of Annex Va as part of the overall**_

_**monitoring of the programme, including missions and institutionalised European partnerships**_

_**on the basis of article 185 TFEU or article 187 TFEU, and present a report on the main findings**_

_**to the Council and the European Parliament.**_

Article 9

Budget

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

2021 – 2027 shall be EUR _**120 000 000 000 in 2018**_ prices for the specific programme

referred to in Article 1(3)(a) and, in addition, the amount for the specific programme

8571/19 ID/mv 56

# ANNEX GIP.2 EN

referred to in Article 1(3)(b), as laid down in Regulation establishing the European

Defence Fund.

2. The indicative distribution of the amount referred to in paragraph 1, first half sentence,

shall be:

(a) _**27.42 %**_ for Pillar I ' _**Excellent and**_ Open Science' for the period 2021-2027, of which

(1) _**17.64%**_ for the European Research Council;

(2) _**7.23%**_ for Marie Skłodowska-Curie Actions;

(3) _**2.55%**_ for research infrastructures;

(b) _**55.48%**_ for Pillar II 'Global Challenges and _**European**_ Industrial Competitiveness'

for the period 2021-2027, of which

(1) _**8.16%**_ for cluster 'Health';

(2) _**2.50%**_ for cluster 'Inclusive and ~~Secure~~ _**Creative**_ Society';

_**(2a)**_ _**2.00% for cluster ‘Secure Societies’;**_

(3) _**15.94%**_ for cluster 'Digital ~~and~~ ~~_**,**_~~ Industry _**and Space**_ ';

(4) _**15.84%**_ for cluster 'Climate, Energy and Mobility';

(5) _**9.00%**_ for cluster 'Food ~~and~~ ~~_**,**_~~ Natural Resources _**and Agriculture**_ ';

(6) _**2.04% for**_ for the non-nuclear direct actions of the Joint Research Centre

(JRC);

(c) _**12.71%**_ for Pillar III '' _**Innovative Europe**_ ' for the period 2021-2027, of which _**:**_

(1) _**8.71%**_ for the European Innovation Council ~~,~~ _**(EIC)**_ including up to _**0.53%**_ for

European Innovation Ecosystems;

(2) _**4%**_ for the European Institute of Innovation and Technology (EIT);

(d) _**4.39% for the**_ Part 'Strengthening the European Research Area' _**with the following**_

_**components:**_

8571/19 ID/mv 57

# ANNEX GIP.2 EN

(1) _**4.00% for Spreading**_ excellence' _**and widening participation across the**_

_**Union**_ ;

(2) ' _**0.39% for**_ reforming and enhancing the European R&I System ~~'.~~

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%, including the allocation**_ of the

_**contributions from associated countries**_ .

_**3c.**_ _**45% of the budget of cluster ‘Inclusive and Creative Society’ shall support research on**_

_**cultural and creative sectors, including the Union’s cultural heritage, that shall include**_

_**EUR 300 million to be earmarked for the creation of a European Cultural Heritage**_

_**Cloud, as set out in Annex I to the Specific Programme following an impact assessment**_

_**to be presented to the European Parliament.**_

_**3d.**_ _**At least EUR 1 billion shall aim to be dedicated to Quantum Research under the**_

_**‘Digital, Industry and Space’ cluster under Pillar II.**_

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. _**The administrative expenses related to**_

_**indirect actions shall not exceed 5% of the total amount under the Programme**_ . 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.

8571/19 ID/mv 58

# ANNEX GIP.2 EN

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.

_▌_

_▌_

Article 10

Open **science**

_**1.**_ _**The programme shall encourage open science as an approach to the scientific process**_

_**based on cooperative work and diffusing knowledge, in particular in line with the**_

_**following elements:**_

     - open access to scientific publications resulting from research funded under the

Programme;

     - open access to research data, including those underlying scientific publications _**.**_

_**These elements**_ 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';**_

_**1a.**_ _**The principle of reciprocity in open science shall be promoted and encouraged in all**_

_**association and cooperation agreements with third countries, including agreements**_

_**signed by funding bodies entrusted for indirect management of the Programme.**_

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. _**Other**_ open science practices ▌shall be _**promoted and encouraged, including for the**_

_**benefit of SMEs.**_

8571/19 ID/mv 59

# ANNEX GIP.2 EN

Article 11

Complementary ~~▌~~ ~~_**,**_~~ combined _**and cumulative**_ funding

_**1.**_ _**Horizon Europe shall be implemented in synergy with other Union funding programmes**_

_**while seeking maximal administrative simplification. A non-exhaustive list of synergies**_

_**with other funding programmes is included in Annex IV. A The Horizon Europe single**_

_**set of rules shall apply for an RDI co-funded action.**_

_**2.**_ _**The Seal of Excellence shall be awarded for all parts of the Programme.**_ 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 due to budgetary constraints,

may receive support _**from national or regional funds, including**_ 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], _**without requiring any further application and evaluation and**_ provided that such

actions are consistent with the objectives of the programme concerned. _**With the exception**_

_**of state aid rules,**_ the rules of the Fund providing support shall apply.

8571/19 ID/mv 60

# ANNEX GIP.2 EN

_**2a.**_ _**In accordance with Article 21 of Regulation (EU) XX [... Common Provisions**_

_**Regulation], the managing authority, on a voluntary basis, may request the transfer of**_

_**parts of its financial allocations to Horizon Europe. Transferred resources shall be**_

_**implemented in accordance with the rules of Horizon Europe. In addition, the**_

_**Commission shall ensure that such transferred funds are earmarked entirely for**_

_**programmes and/or projects which will be implemented in the Member State or region,**_

_**as applicable, they originated from.**_

_**2b.**_ _**With prior authorisation from the applicants, the Commission shall include the**_

_**allocations referred to in this Article in the information system on selected projects in**_

_**order to allow for a fast exchange of information and enable financing authorities to**_

_**provide funding to the selected actions.**_

_**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.**_

Article 12

Third countries associated to the Programme

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

8571/19 ID/mv 61

# ANNEX GIP.2 EN

(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;

(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, _**respect of human rights,**_

backed by democratic institutions;

8571/19 ID/mv 62

# ANNEX GIP.2 EN

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

citizens.

_**Full or partial**_ association to the Programme of each of the third countries under

point(d) shall _**be based on an assessment of the benefits for the Union. It shall in**_

_**particular**_ 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;

_**–**_
_**confers the right to coordinate an action under the Programme provided that**_

_**it benefits the Union and that the protection of Union’s financial interest is**_

_**ensured;**_

–
lays down the conditions of participation in the ~~programmes,~~ _**Programme**_

including the calculation of financial contributions to individual _**(sub-)**_

programmes and their administrative costs. These contributions shall constitute

assigned revenues in accordance with Article 21(5) of the Financial

Regulation;

8571/19 ID/mv 63

# ANNEX GIP.2 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 _**the Union’s**_ 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 _**and shall avoid the**_

_**brain drain from the Union**_ . Accordingly, with the exception of EEA members, acceding

countries, candidate countries and potential candidates, _**mono-beneficiary**_ parts of the

Programme may be excluded from an association agreement for a specific country _**, in**_

_**particular those dedicated to private entities**_ .

3. The association agreement shall, where appropriate, provide for _**and pursue reciprocal**_

participation of legal entities established in the Union in equivalent programmes of

associated countries in accordance with the conditions laid down therein.

4. The _**association agreement**_ conditions determining the level of financial contribution shall

ensure an automatic correction _**, every two years**_ 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.

8571/19 ID/mv 64

# ANNEX GIP.2 EN

_**4a.**_ _**The contributions of all associated countries shall be included in the relevant parts of**_

_**the Programme provided that the budget breakdown as specified in Article 9, paragraph**_

_**2 is respected. The Commission shall report to the Council and the Parliament during**_

_**the annual budgetary procedure the total budget of each part of the Programme,**_

_**identifying each of the associated countries, individual contributions and their financial**_

_**balance.**_

**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 _**and ethical principles**_

1. Without prejudice to _**paragraph**_ ~~_**s**_~~ 2 ▌of this Article, only actions implementing the

objectives referred to in Article 3 shall be eligible for funding.

The following fields of research shall not be financed:

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

8571/19 ID/mv 65

# ANNEX GIP.2 EN

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

such changes heritable _**[1]**_ _**;**_

_____

(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 _**[2 ]**_

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 _**protection of the environment**_

and high levels of human health protection.

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

**1** Research relating to cancer treatment of the gonads can be financed
**2** _**Subject to the final legal act, the Commission will issue a statement on human embryonic**_
_**stem cell research as in H2020 (Declaration 2013 / C 373/02).**_

8571/19 ID/mv 66

# ANNEX GIP.2 EN

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 _**without prejudice to the confidentiality of the content of the**_

_**procedure**_ .

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.

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.

8571/19 ID/mv 67

# ANNEX GIP.2 EN

6. Actions which _**do**_ not **f** _**ulfil the ethical requirements referred to in paragraphs 1-4 and**_

are _**thus**_ not ethically acceptable _**and therefore**_ _**shall**_ be rejected or terminated _**once the**_

_**ethical unacceptability has been established**_ .

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.

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.

▌Actions which do not comply with _**the**_ security rules _**under this Article**_ may be rejected

or terminated at any time.

8571/19 ID/mv 68

# ANNEX GIP.2 EN

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, _**including legal entities from**_

_**non-associated third countries**_ 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;

_**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 _**on the basis of an agreement concluded in accordance with**_

_**Article 12**_ .

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

may be established in a Member State, _**or**_ associated country or in another third country.

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

8571/19 ID/mv 69

# ANNEX GIP.2 EN

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

associated or other third countries in addition to Member States.

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 _**11**_, 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.

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

actions _**and when provided for in the work programme**_, international organisations with

headquarters in a Member State or associated country shall be deemed to be established in

this Member State or associated country.

_**For other parts of the Programme, international organisations other than international**_

_**European research organisations shall be deemed to be established in a non-associated**_

_**third country.**_

Article 19

Entities eligible for funding

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

country _**as referred to in Article 12**_ .

For actions benefiting from amounts under Article _**11(3)**_, only entities established in the

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

amounts.

8571/19 ID/mv 70

# ANNEX GIP.2 EN

_**1b.**_ _**Low to middle income countries 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; and**_

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

_**implementing the action;**_

2. Entities established in _**other**_ non-associated third country should ▌ bear the cost of their

participation. _**R&D agreements between those**_ non-associated third countries _**and the**_

_**Union can be made wherever deemed useful, and co-funding mechanism similar to the**_

_**ones agreed inside Horizon 2020 may be established. Those countries shall ensure**_

_**reciprocal access for Union legal entities to those countries’ RDI**_ funding _**programmes,**_

_**as well as reciprocity in open access to scientific results and data and to fair and**_

_**equitable terms for intellectual property rights.**_

▌

▌

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

Stat ~~e,~~ _**or**_ Associated country ▌.

_**3a.**_ _**The Commission shall report to the Parliament and the Council specifying, for each**_

_**non-associated third country, the amount of the Union’s financial contributions**_

_**provided to the participating entities and the amount of the financial contributions**_

_**provided by the same country to Union entities participating in their activities.**_

Article 20

Calls for proposals

1. ▌The content of the calls for proposals _**for all actions**_ shall be included in the work

programme.

▌

_▌_

_▌_

8571/19 ID/mv 71

# ANNEX GIP.2 EN

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**_ .

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, _**applicants shall fulfil the requirements under Article 18 of this**_

_**Regulation and**_ joint procedures shall be established for selection and evaluation of proposals. The

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

8571/19 ID/mv 72

# ANNEX GIP.2 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 2014/24/EU [1], 2014/25/EU [2] and

2009/81/EC [3] .

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, _**where appropriate and without prejudice to the**_

_**principles enumerated in point (a), a simplified and/or accelerated procedure may**_

_**be used and**_ 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.

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

**1** 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).
**2** 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).
**3** 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).

8571/19 ID/mv 73

# ANNEX GIP.2 EN

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 consulted the contractor on the reasons for the non-exploitation,**_

can require it to transfer any ownership of the results to the contracting authorities.

▌

Article 24

_**Financial capacity of applicants**_

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.

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 _**and selection**_

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

(a) excellence;

(b) impact;

8571/19 ID/mv 74

# ANNEX GIP.2 EN

(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 _**including any weighting,**_ thresholds _**and where relevant rules**_

_**for dealing with ex-aequo proposals, taking into consideration the objectives of the call**_

_**for proposals**_ . _**The conditions for dealing with ex-aequo proposals may include, but not**_

_**limited to, the following criteria: SMEs, gender, geographical diversity.**_

_**3a.**_ _**The Commission and other funding bodies shall take into account the possibility of a**_

_**two-stage submission procedure and where appropriate, anonymised proposals may be**_

_**evaluated during the first stage of evaluation based on one or more of the award criteria**_

_**referred to in paragraph 1.**_

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 _**namely for EIC pathfinder**_

8571/19 ID/mv 75

# ANNEX GIP.2 EN

_**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.**_

_**2a.**_ _**The evaluation process shall be designed to avoid conflict of interest and bias. The**_

_**transparency of the evaluation criteria and of the proposal scoring method shall be**_

_**guaranteed.**_

_**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 that may accompany proposals to the**_

_**collaborative parts of the programme that they coordinate.**_

Article 27

Evaluation review procedure **, enquiries and complaints**

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

procedure has not been correctly applied to its proposal _**[1]**_ .

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

evaluation of the merits of the proposal.

_**2a.**_ _**A request for review shall relate to a specific proposal and shall be submitted within 30**_

_**days after the communication of evaluation results.**_

_1_ _**The procedure will be explained in a document published before the start of the**_
_**evaluation process.**_

8571/19 ID/mv 76

# ANNEX GIP.2 EN

_**An evaluation review committee shall provide an opinion on the procedural aspects, and shall be**_

_**chaired by and include staff of the Commission or of the relevant funding body who were not**_

_**involved in the evaluation of the 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.

_**3a.**_ _**The Commission shall ensure the existence of a procedure for participants to make**_

_**direct enquiries and complaints about their involvement in Horizon Europe. Information**_

_**on how to register enquiries or complaints shall be made available on-line.**_

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.

8571/19 ID/mv 77

# ANNEX GIP.2 EN

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.

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 accelerator**_

_**also due to**_ economic reasons _**, or**_ in the case of EIC and missions _**due to**_ their relevance as

part of a portfolio of actions. _**The Commission shall undergo a procedure with the action**_

_**coordinator and if appropriate with external experts, before deciding to terminate an**_

_**action, in accordance with Article 133 of the Financial Regulation.**_

_**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, inter alia in view of further simplification for beneficiaries,**_

_**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**_

8571/19 ID/mv 78

# ANNEX GIP.2 EN

_**beneficiaries during the implementation of the action, as well as the role and tasks of a**_

_**consortium coordinator.**_

8571/19 ID/mv 79

# ANNEX GIP.2 EN

Article 30

Funding rates

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

_**per action**_ 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 %.

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 _**practice**_ .

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

8571/19 ID/mv 80

# ANNEX GIP.2 EN

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 _**R&I**_ 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.

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.

_**3a.**_ _**Beneficiaries may use their usual accounting practices to identify and declare the costs**_

_**incurred in relation to an action in compliance with all terms and conditions set out in**_

_**the grant agreement, in line with this Regulation and Article 186 of Financial**_

_**regulation.**_

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.

_**Certificates on financial statements may be produced by an approved external auditor**_

_**or, in the case of public bodies, issued by a competent and independent public officer in**_

_**line with Article 203, Para 4 of Financial regulation**_ _._

_**4a.**_ _**Where appropriate, for MSCA training and mobility grants, the EU contribution shall**_

_**take due account of any additional costs of the beneficiary related to maternity or**_

8571/19 ID/mv 81

# ANNEX GIP.2 EN

_**parental leave, sick leave, special leave or change of recruiting host organisation or**_

_**family status of researcher during the lifetime of the grant agreement.**_

_**4b.**_ _**Costs related to open access including data management plans shall be eligible for**_

_**reimbursement as further stipulated in the grant agreement.**_

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**_ .

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

basis of periodic _**transparent**_ 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.

8571/19 ID/mv 82

# ANNEX GIP.2 EN

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 _**extended**_ 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

(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 _**in the Consortium Agreement or in the joint**_

_**ownership agreement**_, 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

8571/19 ID/mv 83

# ANNEX GIP.2 EN

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 _**and any other legitimate interests**_ .

When deciding on protection, beneficiaries shall also consider the legitimate interests of

the other beneficiaries in the action.

Article 35

Exploitation and dissemination

1. _**Each participant that has received Union funding shall use its best efforts to exploit the**_

_**results it owns, or to have them exploited by another legal entity.**_ 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.

2. _**Beneficiaries shall disseminate their results as soon as it is feasible, in a publicly**_

_**available format,**_ subject to any restrictions due to the protection of intellectual property,

_**.**_
security rules or legitimate interests ▌

The work programme may provide for additional dissemination obligations _**while**_

_**safeguarding the Union’s economic and scientific interests**_ .

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.

8571/19 ID/mv 84

# ANNEX GIP.2 EN

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

down in the grant agreement, _**ensuring the possibility of**_ exceptions _**following the**_

_**principle ‘as open as possible, as closed as necessary’**_ _,_ taking into consideration the

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

constraints, such as data protection rules, _**privacy, confidentiality, trade secrets, Union**_

_**competitive interests,**_ security rules or intellectual property rights.

The work programme may provide for additional _**incentives or**_ obligations to adhere to

open science practices.

4. Beneficiaries shall manage all research data _**generated in a Horizon Europe action**_ _**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 _**, where justified**_ **,** 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.

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 _**update**_ the plan during and after the end of the action, _**in**_

_**accordance with the grant agreement**_ .

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**_

8571/19 ID/mv 85

# ANNEX GIP.2 EN

_**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 _**including**_

_**Affiliated Entities**_ 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 _**including**_

_**Affiliated Entities**_, 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. _**The grant agreement**_

_**shall lay down time limits in this respect.**_

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 _**for the Commission or**_

_**funding body**_ 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.

8571/19 ID/mv 86

# ANNEX GIP.2 EN

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;

(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

8571/19 ID/mv 87

# ANNEX GIP.2 EN

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 obligations**_ .

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.

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.

_**Such access rights shall not extend to the beneficiaries’ background.**_

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 _**, where appropriate,**_ for additional access rights.

8571/19 ID/mv 88

# ANNEX GIP.2 EN

Article 38

Specific provisions ▌

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 _**principles and**_

obligations on open access.

▌

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 _**, where appropriate,**_ 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 _**shall**_ include obligations regarding

communication, _**and where appropriate**_ exploitation and dissemination _**, ownership and**_

_**access rights**_ _**including licensing provisions**_ .

CHAPTER IV

Procurement

8571/19 ID/mv 89

# ANNEX GIP.2 EN

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.

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 _**11,**_ 19, 20, 24, 25 _**, and 26**_ . The

implementation modalities of the Horizon Europe blended finance shall comply with

8571/19 ID/mv 90

# ANNEX GIP.2 EN

Article 29, by analogy Article 43(9) and with additional _**and justified**_ 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 _**promotes the**_

_**Union's competitiveness while**_ not _**distorting**_ competition _**in the internal market.**_

_**Article 42a**_

_**The Pathfinder**_

_**1.**_ _**The Pathfinder shall provide grants to high-risk cutting-edge projects, implemented by**_

_**consortia or monobeneficiaries, aiming to develop radical innovations and new market**_

_**opportunities. The Pathfinder shall provide support for the earliest stages of scientific,**_

_**technological or deep-tech research and development, including proof of concept and**_

_**prototypes for technology validation.**_

_**The Pathfinder shall be mainly implemented through an open call for bottom-up**_

_**proposals with regular cut-off dates per year and shall also provide for competitive**_

_**challenges to develop key strategic objectives**_ _**calling for deep-tech and radical thinking.**_

_**2.**_ _**The Pathfinder's Transition activities shall help all types of researchers and innovators**_

_**develop the pathway to commercial development in the Union, such as demonstration**_

_**activities and feasibility studies to assess potential business cases, and support the**_

_**creation of spin offs and start-ups.**_

_**(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)**_ _**Additional grants for a fixed amount not exceeding EUR 50 000 may be awarded**_

_**to each proposal already selected under the EIC Pathfinder through a call for**_

_**proposals, to carry out complementary activities,**_ _**including urgent coordination**_

_**and support actions, for reinforcing the portfolio’s community of beneficiaries,**_

_**such as assessing possible spin-offs, potential market-creating innovations or**_

8571/19 ID/mv 91

# ANNEX GIP.2 EN

_**developing a business plan. The Programme Committee established under the**_

_**Specific Programme shall be informed of such cases.**_

_**3.**_ _**The award criteria as defined in Article 25 shall apply to the EIC Pathfinder.**_

Article 43

_**The**_ Accelerator

1. The _**EIC's**_ Accelerator shall _**aim to support essentially market-creating innovation. It**_

_**shall support only monobeneficiaries and mainly provide blended finance. Under certain**_

_**conditions, it may also provide grant-only and equity-only supports.**_

_**The EIC Accelerator shall propose two types of support:**_

_**-**_ _**Blended finance support to SMEs including start-ups and, in exceptional cases,**_

_**small midcaps carrying out breaktrough and disruptive non-bankable innovation.**_

_**-**_ _**A grant-only support to SMEs, including start-ups, carrying out any type of**_

_**innovation ranging from incremental to breakthrough and disruptive innovation**_

_**and aiming to subsequently scale up.**_

_**Equity-only support to non-bankable SMEs, including start-ups, which have already**_

_**received a grant-only support, may also be provided.**_

_**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.**_

_**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 _**eager to scale-up,**_ 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

8571/19 ID/mv 92

# ANNEX GIP.2 EN

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

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 _**(including EIT's KICs)**_ may directly submit for evaluation

under the last _**award**_ 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 **;** or _**, subject to a pilot in the first Horizon Europe work programme,**_

from ~~a~~ national _**and/or regional programmes, starting with the mapping of the**_

_**demand for such a scheme. Detailed provisions shall be laid down in the Specific**_

_**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**_,

8571/19 ID/mv 93

# ANNEX GIP.2 EN

_**(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.

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 _**non-**_ 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 _**measurable**_ 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 _**measurable**_ milestones are not met. It may also be terminated where the

expected market deployment _**especially in the Union**_ 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.**_

Chapter VI

Experts

8571/19 ID/mv 94

# ANNEX GIP.2 EN

Article 44

Appointment of _**independent**_ external experts

1. _**Independent external 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 Article 237(3) of the Financial Regulation, _**the Commission or the**_

_**relevant funding body**_ may _**, exceptionally and in duly**_ justified _**cases, select**_ in a

transparent manner _**any individual expert with the appropriate skills not included in the**_

_**database**_ _**provided that a call for expressions of interest has not identified suitable**_

_**independent external experts.**_

_**Such experts shall declare their independence and capacity to support Horizon Europe**_

_**objectives.**_

2. In accordance with Article 237(2) and 237(3) of the Financial Regulation, _**independent**_

external experts shall be remunerated based on standard conditions. If justified, _**and in**_

_**exceptional cases**_ 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

_**independent**_ external 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.

_**3a.**_ _**The Commission or the relevant funding body shall take the appropriate measures to**_

_**prevent conflicts of interest as regards the involvement of independent external experts**_

_**in line with Articles 61 and 150(5) of the Financial Regulation.**_

_**The Commission or the relevant funding body shall ensure that an expert faced with a**_

_**conflict of interest in relation to a matter on which the expert is required to provide an**_

_**opinion does not evaluate, advise or assist on the specific matter in question.**_

8571/19 ID/mv 95

# ANNEX GIP.2 EN

_**4.**_ _**When appointing independent external 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**_

_**terms of specialisation, in particular on SSH, geographical diversity and gender, taking**_

_**into account the situation in the field of the action.**_

_**3b.**_ _**Where appropriate, an adequate number of independent experts shall be ensured for**_

_**each proposal in order to guarantee the quality of the evaluation.**_

_**3c.**_ _**The level of remuneration of all independent and external experts shall be made**_

_**available to the European Parliament and the Council. It shall be covered by the**_

_**expenses of the Programme.**_

TITLE III

PROGRAMME MONITORING, COMMUNICATION, EVALUATION AND CONTROL

Article 45

Monitoring and reporting

_**1.**_ _**The Commission shall monitor continuously the management and implementation of**_

_**Horizon Europe, its specific programme and the activities of the EIT. In order to**_

_**enhance transparency, this data shall also be made publicly available in an accessible**_

_**manner on the Commission's webpage according to the latest update.**_

_**In particular, data for projects funded under ERC, European Partnerships, missions,**_

_**EIC and EIT shall be included in the same database.**_

_**This shall include:**_

_**(i)**_ “ _**Time-bound i**_ ndicators to report _**on an annual basis**_ on progress of the Programme

towards the achievement of the objectives established in Article 3 _**and**_ set in Annex

V along impact pathways;”

_**(ii)**_ _**information on the level of mainstreaming social sciences and humanities, the**_

_**ratio between lower and higher TRLs in collaborative research, the progress on**_

_**widening countries participation, the geographical composition of consortia in**_

_**collaborative projects, the evolution**_ ~~_**o**_~~ _**f researchers salaries, the use of two stage**_

_**submission and evaluation procedure, the measures aimed at facilitating**_

8571/19 ID/mv 96

# ANNEX GIP.2 EN

_**collaborative links in European research and innovation, the use of the evaluation**_

_**review and the number and types of complaints, the level of climate mainstreaming**_

_**and related expenditures, SME participation, private sector participation, gender**_

_**participation in funded actions, evaluation panels, boards and advisory groups, the**_

_**Seals of Excellence, the European Partnerships as well as the co-funding rate, the**_

_**complementary and cumulative funding from other Union funds, research**_

_**infrastructures, time-to-grant, the level of international cooperation, engagement**_

_**of citizens’ and civil society participation.**_

_**(iii) the levels of expenditure disaggregated at project level in order to allow for specific**_

_**analysis, including per intervention area.**_

_**(iv) the level of oversubscription, in particular the number of proposals**_ ~~_**a**_~~ _**nd per call for**_

_**proposals, their average score, the share of proposals above and below quality**_

_**thresholds.**_

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

_**without increasing the administrative burden for beneficiaries**_ . To that end, proportionate

reporting requirements shall be imposed on recipients of Union funds **,** _**including at the**_

_**level of researchers involved in the actions in order to be able to track their career and**_

_**mobility,**_ and (where relevant) Member States _**[1]**_ .

_**3a.**_ _**Qualitative analysis from the Commission and Union or national funding bodies shall**_

_**complement as much as possible quantitative data.**_

_**4.**_ _**The measures aimed at facilitating collaborative links in European research and**_

_**innovation shall be monitored and reviewed within the context of the work programmes.**_

**1** _**Provisions for the monitoring of the European Partnerships are set out in the Annex III**_

_**of the Regulation.**_

8571/19 ID/mv 97

# ANNEX GIP.2 EN

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 _**, including**_

_**for prizes**_ ) by providing coherent, effective and proportionate targeted information to

multiple audiences, including the media and the public.

2. The Commission shall implement information and communication actions relating to the

Programme, and its actions and results. _**In addition, it**_ _**shall provide timely and thorough**_

_**information to Member States and beneficiaries. 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 _**with the assistance of independent**_

_**experts selected on the basis of a transparent process**_ carried out once there is sufficient

8571/19 ID/mv 98

# ANNEX GIP.2 EN

information available about the implementation of the Programme, but no later than four

years after the start of the programme implementation. It shall include _**a portfolio analysis**_

_**and**_ an assessment of the long-term impact of previous Framework Programmes and shall

form the basis to adjust programme implementation _**and/or review the programme,**_ as

appropriate _**. It shall assess the Programme’s effectiveness, efficiency, relevance,**_

_**coherence, and Union added value.**_

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 _**publish and**_ communicate the conclusions of the evaluations

accompanied by its observations _**and shall present them**_ 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. _**Audit rules shall be clear, consistent and coherent**_

_**throughout the Programme.**_

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.

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

8571/19 ID/mv 99

# ANNEX GIP.2 EN

audits of accounting documents in accordance with Directive 2006/43/EC _**[1]**_ . 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

_**independent and competent**_ 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.

_**5a.**_ _**The Commission shall publish audit guidelines, aiming to ensure a reliable and uniform**_

_**application and interpretation of the audit procedures and rules throughout the duration**_

_**of the programme.**_

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.

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.

**1** 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)

8571/19 ID/mv 100

# ANNEX GIP.2 EN

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.

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.

8571/19 ID/mv 101

# ANNEX GIP.2 EN

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.

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.

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.

8571/19 ID/mv 102

# ANNEX GIP.2 EN

Done at ...

_For the European Parliament_ _For the Council_

_The President_ _The President_

8571/19 ID/mv 103

# ANNEX GIP.2 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 _**, with an emphasis on early stage 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 Union-wide 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 _**across**_

_**the whole of Europe,**_ contributing to boosting jobs, growth, and investment, and solving

current and future societal challenges.

Areas of intervention: Nurturing excellence through mobility of researchers across borders,

sectors and disciplines; fostering new skills through excellent training of researchers;

8571/19 ID/mv 104

# ANNEX GIP.2 EN

strengthening human _**resources**_ and skills development across the European Research

Area **;** 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; _**The**_

_**innovation potential of European research infrastructures and activities for innovation**_

_**and training;**_ Reinforcing European research infrastructure policy and international

cooperation;

(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.**_

To maximise impact flexibility and synergies, research and innovation activities _**shall**_ be

organised in _**six**_ clusters _**, interconnected through pan-European research infrastructures**_,

which individually and together will incentivise interdisciplinary, cross-sectoral, cross

policy, cross-border and international cooperation. _**Activities from a broad range of TRLs,**_

_**including lower TRLs will be covered in this pillar of Horizon Europe.**_

8571/19 ID/mv 105

# ANNEX GIP.2 EN

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 _**and developing health technologies**_ ; 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 and tackling 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, creativity and**_ inclusive society': Strengthening ▌democratic

values, including rule of law and fundamental rights, safeguarding our cultural

heritage, _**exploring the potential of cultural and creative sectors,**_ and promoting

socio-economic transformations that contribute to inclusion and growth, ▌including

_**migration management and integration of migrants**_ .

Areas of intervention: Democracy _**and governance**_ ; _**Culture,**_ cultural heritage _**and**_

_**creativity**_ ; Social and economic transformations.▌

_**(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

8571/19 ID/mv 106

# ANNEX GIP.2 EN

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,

_**including quantum 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, Energy and Mobility': Fighting climate change by better

understanding its causes, evolution, risks, impacts and opportunities **,** by making the

energy and transport sectors more climate and environment-friendly, more efficient

and competitive, smarter, safer and more resilient **,** _**promote the use of renewable**_

_**energy sources and energy efficiency, improve resilience of the Union to external**_

_**shocks and adapt 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**_ ; Clean **,** _**Safe and**_

_**Accessible**_ _**Transport**_ and _**Mobility**_ ; Smart _**Mobility**_ ; Energy _**Storage**_ .

_**(f)**_ Cluster 'Food _**, Bioeconomy,**_ _**Natural Resources**_, _**Agriculture**_ _**and Environment'**_ :

Protecting _**the environment**_, restoring, sustainably managing and using natural and

biological resources from land _**, inland**_ _**waters**_ 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

8571/19 ID/mv 107

# ANNEX GIP.2 EN

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 ~~_**m**_~~ _**onitored.**_ 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; _**Culture, creativity**_ and _**inclusive society; civil**_ security

_**for society**_ ; digital _**,**_ industry _**and space**_ ; climate, energy and mobility; food,

_**bioeconomy**_ **,** natural resources, _**agriculture 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, including _**non-technological innovation,**_ _**primarily within SMEs including start-ups,**_

_**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**_

_**intrumentsthe Pathfinder, implemented mainly through collaborative research, and the**_

_**Accelerator.**_

(a) European Innovation Council: _**focusing mainly on breakthrough and disruptive**_

_**innovation, targeting especially market-creating innovation, while also supporting all**_

_**types of innovation, including incremental.**_

Areas of intervention: Pathfinder _**for advanced research**_, supporting future and emerging

breakthrough _**, market-creating and/or deep tech**_ technologies; The 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 EIC activities

such as prizes and fellowships, and business added-value services.

8571/19 ID/mv 108

# ANNEX GIP.2 EN

(b) European innovation ecosystems

Areas of intervention: _**Activities will include in particular 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: _**Sustainable**_ innovation ecosystems across Europe; _**Innovation and**_

_**entrepreneurial**_ skills in a lifelong learning perspective, _**including increasing capacities**_

_**of higher education institutions across Europe; New**_ solutions to _**market to address**_

global ▌challenges ▌; Synergies and value added within Horizon Europe.

(4) Part _**'Widening participation and**_ strengthening the European Research Area'

Through the following activities, this _**pillar shall pursue the specific objectives as set out**_ in ▌Art

3(2)(d). It _**shall**_ also _**contribute to**_ the ▌other _**Programme's**_ specific objectives as described in

Article 3. 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 _**the whole**_

Europe in a well-performing European Research Area (ERA), where knowledge and a highly

skilled workforce circulate freely _**in a balanced manner**_, 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**_

8571/19 ID/mv 109

# ANNEX GIP.2 EN

_**already selected collaborative projects in which legal entities from such Member States are not**_

_**participating.**_

Areas of intervention: _**Widening participation and**_ _**spreading**_ excellence _**, including through**_

_**Teaming, Twinning, ERA-Chairs, COST,**_ Excellence _**initiatives**_ and _**activities to foster brain**_

_**circulation**_ ; Reforming and enhancing the European R&I system _**, including through for example**_

_**supporting national research and innovation policy reform, providing attractive career**_

_**environments, and supporting gender and citizen science.**_

8571/19 ID/mv 110

# ANNEX GIP.2 EN

_**ANNEX Ia**_

EUROPEAN INSTITUTE OF INNOVATION AND TECHNOLOGY (EIT)

_**The following shall apply in the implementation of the programme activities of the EIT:**_

3.1. 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 _**higher education institutions**_ are

called to stimulate entrepreneurship, tear down disciplinary borders and institutionalise strong _**inter**_ 

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, training opportunities _**and the development of creative skills**_

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.

_**The EIT is today’s Europe’s largest integrated innovation ecosystem which brings together**_

_**partners from business, research, education and beyond. The EIT will continue to support its**_

_**Knowledge and Innovation Communities (KICs), which are large-scale European partnerships**_

_**addressing specific global challenges, and strengthen the innovation ecosystems around them. It**_

_**will do so by fostering the integration of education, research and innovation of the highest**_

_**standards, thereby creating environments conducive to innovation, and by promoting and**_

_**supporting a new generation of entrepreneurs and stimulating the creation of innovative**_

_**companies in close synergy and complementarity with the EIC.**_

8571/19 ID/mv 111

# ANNEX GIP.2 EN

_**Throughout Europe, 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 _**ecosystems**_ _**shall benefit from**_ coordination and a clear

focus on specific objectives and impact.

To address future _**societal**_ challenges, embrace the opportunities of new technologies and contribute

to _**environmentally friendly and**_ 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:

_**strenghtening existing and**_ 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 _**, as well as strengthening the visibility and recognition of EU**_

_**funded research and innovation activities, in particular the EIT funding to the wider public.**_

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. _**The Strategic Innovation Agenda of the EIT shall ensure**_

_**coherence with the challenges of Horizon Europe, as well as complimentarity to the EIC.**_

3.2. Areas of Intervention

3.2.1. Sustainable innovation ecosystems across Europe

_**In accordance with the EIT regulation and the EIT Strategic Innovation Agenda,**_ the EIT will

play a reinforced role in strengthening sustainable _**challenges-based**_ innovation ecosystems

_**throughout**_ 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 _**strenghten**_ innovation _**ecosystems**_ _**throughout**_ Europe by expanding its Regional Innovation

8571/19 ID/mv 112

# ANNEX GIP.2 EN

Scheme (EIT RIS). The EIT will work with innovation ecosystems that exhibit high innovation

potential based on strategy, thematic alignment and _**envisaged**_ impact, in close synergy with Smart

Specialisation Strategies and Platforms.

–
Reinforcing the effectiveness _**and the openness to new partners**_ of the existing KICs

_**enabling the transition to self-sustainability in the long-term,**_ and _**analyzing the need of**_

setting up new ones _**to tackle global challenges. The specific**_ thematic areas _**will be**_

_**defined in the Strategic Innovation Agenda, taking into account**_ ~~_**t**_~~ _**he Strategic Planning;**_

–
Accelerating regions towards excellence in countries that are _**that are defined in the**_

_**Strategic Innovation Agenda**_ _**in close cooperation with structural funds and other**_

_**relevant EU funding programmes where appropriate.**_

2.2. Innovation _**and**_ _**entrepreneurial**_ skills in a lifelong learning perspective _**, including**_

_**increasing capacities of higher education institutions across Europe**_

The EIT education activities will be reinforced to foster innovation and entrepreneurship through

_**purposeful**_ 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 **,** _**creativity**_ 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 _**higher education institutions**_ _**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.

–
Development of innovative curricula, taking into account the future needs of _**society and**_

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 sustainable 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 _**while enhancing its overall**_

8571/19 ID/mv 113

# ANNEX GIP.2 EN

_**quality**_ _**by**_ offering learning-by-doing curricula and _**purposeful**_ entrepreneurship education

as well as international, inter-organisational and cross-sectorial mobility;

–
Development of innovation and entrepreneurship capabilities of the higher education

sector, by leveraging _**and promoting**_ 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 th ~~e m~~ arket _**to address global challanges**_

The EIT will facilitate _**,**_ empower _**and award**_ entrepreneurs, innovators, _**researchers**_, educators,

students and other innovation actors _**, while ensuring gender mainstreaming,**_ 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.).

– Support the development of new products **,** services _**and market**_ ~~_**s**_~~ **opportunities** where

Knowledge Triangle actors will collaborate to _**bring**_ solutions _**to global challenges**_ ;

_**-**_
_**Fully integrate the entire innovation value chain: from student to entrepreneur, from**_

_**idea to product, from lab to customer. This include support for start-ups and scaling-up**_

_**businesses.**_

–
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.

3.2.4. Synergies and value added within Horizon Europe

The EIT will step up its efforts to capitalise on synergies and complementarities _**between existing**_

_**KICs and**_ with different actors and initiatives at EU and global levels and extend its network of

collaborating organisations at both strategic and operational levels _**, while avoiding duplications**_ .

8571/19 ID/mv 114

# ANNEX GIP.2 EN

– C _**lose c**_ ooperation with the EIC _**and InvestEU**_ in streamlining the support (i.e. funding and

services) offered to ▌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 _**other parts of the**_ _**Programme**_ ;

– 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,**_ _**also considering through**_

_**the implementation of the “European Innovation Ecosystems”,**_ in order to identify, share

and disseminat ~~e~~ ~~_**b**_~~ _**est**_ practices and learnings;

–
_**Share and disseminate innovative practices and learnings throughout Europe and**_

_**beyond, so as to 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 **,** _**including those**_ supporting human

capital development and innovation (e.g. _**COST,**_ ESF+, ERDF, Erasmus _**+, Creative**_

_**Europe**_ _**and COSME Plus/Single Market, InvestEU**_ );

–
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 with regard to the principles of reciprocity and mutual benefits.**_

▌

8571/19 ID/mv 115

# ANNEX GIP.2 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

_**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 _**,**_ _**sustainability**_ 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 _**, backgrounds 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**_ ;

(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 _**the Union**_ **.**

–
demonstration of ▌expected _**qualitative and significant quantitative leverage**_

_**effects, including a method for the measurement of key performance indicators**_ ;

8571/19 ID/mv 116

# ANNEX GIP.2 EN

–
approaches to ensure flexibility of implementation and to adjust to changing policy,

societal _**and/**_ 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, _**established in accordance with**_

_**article 185 or 187 TFEU,**_ 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 _**such**_ 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 administrative**_

_**costs as well as coordination and support and other non-competitive activities.**_

_**(ea)**_ _**In agreement with regional authorities, ERDF shall be accepted as a partial national**_

_**contribution for Programme co-funding of actions involving Member States.**_

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;

(b) Appropriate measures ensuring continuous openness of the initiative and transparency

during implementation, notably for priority setting and for participation in calls for

proposals, _**information on the functioning of the governance**_, 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 informing**_

_**SMEs and promoting their participation;**_

8571/19 ID/mv 117

# ANNEX GIP.2 EN

(c) Coordination and/or joint activities with other relevant research and innovation initiatives _**to**_

_**secure optimum level of interconnections and ensure**_ effective synergies, _**inter alia to**_

_**overcome potential implementation barriers at national level and increase cost-**_

_**effectiveness**_ ;

(d) ▌Commitments, ▌for financial _**and/or in-kind**_ 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 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.**_

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;

(b) _**In the absence of renewal,**_ appropriate measures ensuring phasing-out _**of Framework**_

_**Programme funding**_ according to the ▌conditions and timeline agreed with the _**legally**_

committed partners ex-ante, without prejudice to possible continued transnational funding

8571/19 ID/mv 118

# ANNEX GIP.2 EN

by national or other Union programmes _**, and without prejudice to private investment**_ _**and**_

_**on-going projects**_ _._

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" [1] 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" _**and relevant EIT Knowledge and Innovation Communities (KICs)**_ ;

(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;

(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,

**1** Communication from the Commission to the European Parliament and the Council on the
European Innovation Partnership 'Agricultural Productivity and Sustainability' (COM(2012)
79 final).

8571/19 ID/mv 119

# ANNEX GIP.2 EN

which in turn contributes to the implementation of the Common Fisheries Policy, the

EU Maritime Policy _**,**_ International Ocean Governance _**and International**_

_**commitments.**_

3. Synergies with the European Regional Development Fund (ERDF) will ensure that:

(a) arrangements for combined funding from ERDF and _**Horizon Europe**_ are used to

support activities providing a bridge between _**regional Operational Programmes,**_

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;

_**(aa) ERDF funds can be transferred on a voluntary basis to support activities under the**_

_**Programme, in particular the Seal of excellence;**_

(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 _**;**_

_**(ba) existing regional ecosystems, platform networks and regional strategies are**_

_**enhanced.**_

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 _**on a voluntary**_

_**basis**_ to support activities _**of the Programme that promote**_ human capital

development in research and innovation with the aim of strengthening the European

Research Area; **[Am. 148]**

(c) the Health strand of the European Social Fund+ mainstreams innovative technologies

and new business models and solutions, in particular those resulting from the

8571/19 ID/mv 120

# ANNEX GIP.2 EN

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;

(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, _**Distributed Ledger Technologies, Quantum Technologies**_

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 _**European**_ Industrial

Competitiveness'; and the support to digital research infrastructures;

8571/19 ID/mv 121

# ANNEX GIP.2 EN

(c) DEP focuses on large-scale digital capacity and infrastructure building in High

Performance Computing, Artificial Intelligence, Cybersecurity _**, Distributed Ledger**_

_**Technologies, Quantum Technologies**_ 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 Knowledge and Innovation Communities**_, are

complemented by Digital Europe-supported capacity-building in advanced digital

skills;

(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

_**both the EIT and**_ the future European Innovation Council for innovative companies,

8571/19 ID/mv 122

# ANNEX GIP.2 EN

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 _**, DIH, Competence Centres,**_

_**certified incubators**_ ), to deliver support services under the _**Horizon Europe**_

_**programme, including the**_ European Innovation Council.

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 _**EIT as well as the future**_ 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

8571/19 ID/mv 123

# ANNEX GIP.2 EN

growth; _**the EIT’s educational activities could be both inspirational to and**_

_**interlinked with the European Universities initiative.**_

(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.

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

8571/19 ID/mv 124

# ANNEX GIP.2 EN

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.

_**Strong complementary links will be established between InvestEU and Horizon**_

_**Europe.**_

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

8571/19 ID/mv 125

# ANNEX GIP.2 EN

carbon intensive ones, and to help stimulate the construction and operation of

projects that aim at the environmentally safe capture and geological storage of CO 2

as well as innovative renewable energy and energy storage technologies; _**An**_

_**appropriate framework will be created to enable and to incentivise “greener”**_

_**products with a sustainable added value for the customers/end-users.**_

(b) the Programme will fund the development ~~and~~ ~~_**,**_~~ demonstration _**and implementation**_

of technologies _**, including breakthrough solutions,**_ that can deliver on ~~EU~~ _**a low-**_

_**carbon economy and the Union’s**_ decarbonisation, energy and industrial

transformation objectives, especially in its Pillar 2 _**and through the EIT**_ ;

(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~~ _**.**_

_**Projects receiving support from the Innovation Fund may be eligible for**_ support

from the Framework Programmes for research and innovation _**and vice versa**_ . _**To**_

_**complement Horizon Europe, the Innovation Fund may concentrate on close-to-**_

_**the-market innovations contributing to a significant and fast reduction of CO**_ _**2**_

_**emissions. Strong complementary links will be established between the Innovation**_

_**Fund and Horizon Europe.**_

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. _**Potential**_ synergies with the European Defence Fund will _**contribute to avoiding**_

duplication.

8571/19 ID/mv 126

# ANNEX GIP.2 EN

_**16a.**_ _**Synergies with Creative Europe will support competitiveness and innovation,**_

_**contributing to economic and social growth and promoting the effective use of public**_

_**funds.**_

_**16b.**_ _**Synergies with any Important Projects of Common European Interest (IPCEI) may be**_

_**envisaged.**_

ANNEX V

KEY IMPACT PATHWAY INDICATORS

Impact pathways, and related key impact pathway indicators, shall structure the monitoring of the

Framework Programme’s (FP) _**progress**_ towards its objectives _**as referred to in Article 3**_ . The

impact pathways are time-sensitive _**and reflect three complementary impact categories reflecting**_

_**the non-linear nature of R&I investments: scientific, societal and technological/economic.**_ _**For**_

_**each of these impact categories, proxy indicators will be used to track progress distinguishing**_

between the short, medium and _**longer terms, including beyond the Programme duration,**_ _**with**_

_**possibilities for breakdowns, including by Member States and associated countries. 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, data on the optimised delivery of the**_

_**Programme for strenghtening the European Research Area, fostering the excellence-based**_

_**participations from all Member States in the Programme as well as facilitating collaborative links**_

_**in European research and innovation will be collected and reported in close to real-time as part**_

_**of implementation and management data,**_ _**referred to in Article 45. This will include, inter alia,**_

_**the monitoring of collaborative links, network analytics, data on proposals, applications,**_

_**participations and projects; applicants and participants (including the type of organization (such**_

_**as Civil Society Organisations, SMEs and private sector), country (such as a specific**_

_**classification for country groups such as Member States, associated countries and third**_

8571/19 ID/mv 127

# ANNEX GIP.2 EN

_**countries),**_ _**gender, role in project, scientific discipline/sector, including SSH); and**_ _**the level of**_

_**climate mainstreaming and related expenditures**_ **.**

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.

Societal impact pathway indicators

The Programme is expected to have societal impact by addressing _**the**_ EU policy priorities **and**

**global challenges, including UN SDGs, following the principles of the Agenda 2030 and the**

**goals of the Paris Agreement,** through R&I, delivering benefits and impact through R&I missions

_**and European Partnerships**_ and strengthening the uptake of innovation in society _**ultimately**_

_**contributing to people’s well-being**_ . Progress towards this impact will be monitored through proxy

indicators set along the following _**three**_ key impact pathways.

_**Technological**_ /Economic ▌ impact pathway indicators

The Programme is expected to have _**technological/**_ economic ▌impact _**especially within the Union**_

by influencing the creation and growth of companies, _**especially SMEs including start-ups,**_ creating

direct and indirect jobs _**especially within the Union**_, 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.

8571/19 ID/mv 128

# ANNEX GIP.2 EN

**Annex V – table 1**

|Towards scientific<br>impact|Short-term|Medium-term|Longer-term|
|---|---|---|---|
|Creating high-<br>quality new<br>knowledge<br>|Publications - <br>Number of FP peer reviewed scientific<br>publications<br>|Citations -<br>Field-Weighted Citation Index of<br>FP peer reviewed<br>publications|World-class science -<br>Number and share of peer reviewed<br>publications from<br>FP projects that are core contribution to<br>scientific fields|
|Strengthening<br>human capital in<br>R&I<br>|Skills -<br>Number of researchers**_involved in_** upskilling<br>**_(training, mentoring/coaching, mobility and_**<br>**_access to R&I infrastructures)_** activities in FP<br>projects|Careers -<br>Number and share of<br>upskilled FP researchers with<br>**_increased individual impact_** in<br>their R&I field|Working conditions -<br>Number and share of upskilled FP<br>researchers with improved working<br>conditions,**_including researchers' salaries_** <br>|
|Fostering diffusion<br>of knowledge and|Shared knowledge -|Knowledge diffusion -|New collaborations -|

8571/19 ID/mv 129

# ANNEX GIP.2 EN

8571/19 ID/mv 130

# ANNEX GIP.2 EN

**Annex V – table 2**

|Towards societal<br>impact|Short-term|Medium-term|Longer-term|
|---|---|---|---|
|Addressing EU<br>policy priorities <br>**_and global_**<br>**_challenges_**through<br>R&I <br>|Outputs -<br>Number and share of outputs aimed at addressing<br>**_identified_** EU policy priorities**_and global_**<br>**_challenges (including SDGs)_**<br>**_(multidimensional: for each identified priority)_**<br> <br>**_Including: Number and share of climate-_**<br>**_relevant outputs aimed at delivering on the EU's_**<br>**_commitment_**~~**_s _**~~**_under the Paris Agreement_**|Solutions -<br>Number and share of innovations<br>and research results addressing<br>**_identified_** EU policy priorities<br>**_and global challenges (including_**<br>**_SDGs)_**<br>**_(multidimensional: for each_**<br>**_identified priority)_**<br> <br>**_Including: Number and share of_**<br>**_climate-relevant innovations and_**<br>**_research results delivering on_**<br>**_EU's  commitment_**~~**_s _**~~**_under the_**<br>**_Paris Agreement_**|Benefits -<br>Aggregated estimated effects from<br>use/**_exploitation_** of FP-funded results, on<br>tackling**identified** EU policy priorities**and**<br>**global challenges (including SDGs),** <br>including contribution to the policy and law-<br>making cycle (**_such as norms and_**<br>**_standards_**) **(multidimensional: for each**<br>**identified priority)**<br> <br>**_Including: Aggregated estimated effects_**<br>**_from use /exploitation of FP-funded_**<br>**_climate-relevant results on delivering on_**<br>**_the EU's commitment_**~~**_s _**~~**_under the Paris_**<br>**_Agreement including contribution to the_**<br>**_policy and law-making cycle (such as_**|

8571/19 ID/mv 131

# ANNEX GIP.2 EN

|Col1|Col2|Col3|norms and standards)|
|---|---|---|---|
|Delivering benefits<br>and impact through<br>R&I missions|R&I mission outputs -<br>Outputs in specific R&I<br>Missions<br>**(****_multidimensional: for 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 R&I missions<br>**_(multidimensional: for each identified_**<br>**_mission)_**|
|Strengthening the<br>uptake**_of research_**<br>**_and_**innovation in<br>society <br>|Co-creation -<br>Number and share of FP projects where EU<br>citizens and end-users contribute to the co-<br>creation of R&I content|Engagement -<br>Number and share of FP<br>beneficiary entities with<br>citizen and end-users engagement<br>mechanisms after FP project|Societal R&I uptake -<br>Uptake and outreach of FP co-created<br>scientific results and innovative solutions<br>|

8571/19 ID/mv 132

# ANNEX GIP.2 EN

**Annex V – table 3**

|Towards<br>technological /<br>economic impact|Short-term|Medium-term|Longer-term|
|---|---|---|---|
|Generating<br>innovation-based<br>growth|Innovative outputs -<br>Number of innovative products, processes or<br>methods from FP (by type of innovation) &<br>Intellectual Property Rights (IPR) applications|Innovations-<br>Number of innovations from FP<br>projects (by type of innovation)<br>including from awarded IPRs|Economic growth -<br>Creation, growth & market shares of<br>companies having developed FP innovations|
|Creating more and<br>better jobs|Supported employment -<br>Number of FTE jobs created, and jobs maintained<br>in beneficiary entities for the FP project (by type<br>of job)|Sustained employment-<br>Increase of FTE jobs in<br>beneficiary entities following FP<br>project (by type of job)|Total employment <br>Number of direct & indirect jobs created or<br>maintained due to diffusion of FP results (by<br>type of job)|
|Leveraging<br>investments in R&I|Co-investment -<br>Amount of public & private investment mobilised<br>with the initial FP investment|Scaling-up-<br>Amount of public & private<br>investment mobilised to exploit or<br>scale-up FP results**(including**<br>**foreign direct investments)**|Contribution to ‘3% target’ -<br>EU progress towards 3% GDP target due to<br>FP|

8571/19 ID/mv 133

# ANNEX GIP.2 EN

_**ANNEX Va**_

_**Areas for possible missions and areas for possible institutionalised European Partnerships to be**_

_**established under Article 185 or 187 TFEU**_

_**In accordance with Article 7 and 8 of this Regulation, the areas for possible Missions and**_

_**possible European Partnerships to be established under Articles 185 or 187 TFEU are set out in**_

_**this Annex.**_

_**I. Areas for possible Missions**_

_**Missions Area 1: Adaptation to Climate Change, including Societal Transformation**_

_**Mission Area 2: Cancer**_

_**Mission Area 3: Healthy Oceans, Seas, Coastal and Inland Waters**_

_**Mission Area 4: Climate-Neutral and Smart Cities**_

_**Mission Area 5: Soil Health and Food**_

_**Each mission will follow the principles set out in Article 7 paragraph 3 of this Regulation.**_

_**II. Areas for possible institutionalised European Partnerships on the basis of Article 185 TFEU**_

_**or Article 187 TFEU**_

_**Partnership Area 1: Faster development and safer use of health innovations for European**_

_**patients, and global health.**_

_**Partnership Area 2: Advancing key digital and enabling technologies and their use, including**_

_**but not limited to novel technologies such as Artificial Intelligence, photonics and quantum**_

_**technologies.**_

8571/19 ID/mv 134

# ANNEX GIP.2 EN

_**Partnership Area 3: European leadership in Metrology including an integrated Metrology**_

_**system.**_

_**Partnership Area 4: Accelerate competitiveness, safety and environmental performance of EU air**_

_**traffic, aviation and rail.**_

_**Partnership Area 5: Sustainable, inclusive and circular bio-based solutions.**_

_**Partnership Area 6: Hydrogen and sustainable energy storage technologies with lower**_

_**environmental footprint and less energy-intensive production.**_

_**Partnership Area 7: Clean, connected, cooperative, autonomous and automated solutions for**_

_**future mobility demands of people and goods.**_

_**Partnership Area 8: Innovative and R&D intensive small and medium-sized enterprises.**_

_**The process of assessing the need for an institutionalised European partnership in one of the**_

_**abovementioned Partnership Areas may result in a proposal on the basis of Article 185 TFEU or**_

_**Article 187 TFEU, in accordance with the European Commission's right of initiative. Otherwise**_

_**the respective Partnership Area can also be subject to a partnership following Article 8(1)(a) or**_

_**Article 8(1)(b) of the Framework Programme or be implemented by calls for proposals within**_

_**Horizon Europe.**_

8571/19 ID/mv 135

# ANNEX GIP.2 EN

_**As the possible areas for institutionalised European partnerships cover broad thematic fields,**_

_**they can, based on the assessed needs, be implemented by more than one partnership.**_

8571/19 ID/mv 136

# ANNEX GIP.2 EN