Source: EURLEX
Language: en
Format: md

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

**Interinstitutional File:**

**2023/0319(NLE)**

**COVER NOTE**

**Brussels, 8 September 2023**
**(OR. en)**

**12772/23**
**ADD 2**

**UK 168**
**RECH 389**
**ESPACE 48**
**BUDGET 25**

From: Secretary-General of the European Commission, signed by Ms Martine
DEPREZ, Director

To: Ms Thérèse BLANCHET, Secretary-General of the Council of the
European Union

No. Cion doc.: COM(2023) 527 final

Subject: ANNEX to the Proposal for a COUNCIL DECISION on the position to be
taken on behalf of the European Union in the Specialised Committee on
Participation in Union Programmes

Delegations will find attached document COM(2023)527 ANNEX 2.

Encl.: COM(2023) 527 final

12772/23 ADD 2 KB/mab

## GIP.EU-UK EN

EUROPEAN

COMMISSION

**ANNEX**

**to the**

Brussels, 7.9.2023
COM(2023) 527 final

ANNEX 2

**Proposal for a COUNCIL DECISION**

**on the position to be taken on behalf of the European Union in the Specialised**

**Committee on Participation in Union Programmes**

# **EN EN**

**ANNEX 2**

**Decision No 1/2023 of the Specialised Committee on Participation in Union Programmes**

**established by Article 8(1)(s) of the Trade and Cooperation Agreement between the**
**European Union and the European Atomic Energy Community, of the one part, and the**

**United Kingdom of Great Britain and Northern Ireland, of the other part**,

**of …**

**adopting Protocols I and II and amending Annex 47 to the Trade and Cooperation**

**Agreement**

THE SPECIALISED COMMITTEE ON PARTICIPATION IN UNION PROGRAMMES,

Having regard to the Trade and Cooperation Agreement between the European Union and the
European Atomic Energy Community, of the one part, and the United Kingdom of Great
Britain and Northern Ireland, of the other part [1] (the ‘Trade and Cooperation Agreement’), and
in particular Articles 710(2), 714(11) and 731(3) thereof,

Whereas:

(1) Pursuant to Article 710(2), and Article 731(3) of the Trade and Cooperation
Agreement, the Specialised Committee on Participation in Union Programmes
established by Article 8(1)(s) of the Trade and Cooperation Agreement is empowered
to adopt Protocol I Programmes and activities in which the United Kingdom
participates (‘Protocol I’), and Protocol II on access of the United Kingdom to
services established under certain Union programmes and activities in which the
United Kingdom does not participate (‘Protocol II’).

(2) Protocols I and II apply from the fourth year of the Union’s multiannual financial
framework 2021-2027. United Kingdom entities did not participate from the
beginning of the programmes and activities identified therein. Due to these
circumstances, Protocol I should include specific modalities in the form of an
additional mechanism to address the situation in which the amounts of the initial
legal commitments (competitive grants) entered into with the United Kingdom or
United Kingdom entities in relation to a given budgetary year would be substantially
lower than the corresponding operational contribution paid by the United Kingdom
for the same year to the Horizon Europe programme, in line with the existing terms
and conditions of the Trade and Cooperation Agreement. If such difference in
absolute terms exceeds 16% of the corresponding operational contribution for that
budgetary year, under the mechanism, the operational contribution to be paid by the
United Kingdom for the second budgetary year following that budgetary year should
be reduced by the difference between the absolute amount calculated in accordance
with the method laid down in Article 716(2) for that budgetary year and the amount
which corresponds to 16% of the corresponding operational contribution for the same
year. The mechanism should be without prejudice to the performance review set out
in Article 721 of the Trade and Cooperation Agreement. For the purpose of avoiding
a double adjustment, the amount of any adjustment made under the additional
mechanism is to be taken into account in the application of Article 721(3)(b) of the
Trade and Cooperation Agreement.

(3) Pursuant to Article 714(11) of the Trade and Cooperation Agreement, the Specialised
Committee on Participation in Union Programmes established by Article 8(1)(s) of

1 OJ L 149, 30.4.2021, p.10.

# EN 1 EN

the Trade and Cooperation Agreement is empowered to amend Annex 47 to the
Trade and Cooperation Agreement.

(4) The Union programmes’ basic acts referred to in the Joint Declaration on
participation in Union Programmes and access to programme services referred to in
Council Decision (EU) 2020/2252 have now been adopted.

HAS ADOPTED THIS DECISION:

_Article 1_

Protocols I and II as set out in the Annex to this Decision are hereby adopted.

_Article 2_

Annex 47 to the Trade and Cooperation Agreement is hereby amended as follows:

a) Paragraphs 4, 6 and 7 are deleted.

b) Paragraph 5 becomes paragraph 4 and shall read as follows:

“The call for funds for a given year shall have the value established by dividing the
annual amount calculated in application of Article 714 of this Agreement, including
any adjustment under Article 714(8), Article 716 or 717 of this Agreement, by the
number of calls for funds for that year pursuant to paragraph 2 of this Annex.”

c) Paragraphs 8 and 9 become paragraphs 5 and 6 respectively.

_Article 3_

This Decision shall enter into force on the date of its adoption.

It shall apply from 1 January 2024.

Done at …,

_For the Specialised Committee on Participation in Union Programmes_

The Co-chairs

# EN 2 EN

**Protocol I**

Programmes and activities in which the United Kingdom participates

_Article 1: Scope of the United Kingdom’s participation_

_(1)_ The United Kingdom shall participate in and contribute as of 1 January 2024 to the
Union programmes and activities, or parts thereof, established by the following basic

acts:

a) Regulation (EU) 2021/696 of the European Parliament and of the Council of
28 April 2021 establishing the Union Space Programme and the European Union
Agency for the Space Programme and repealing Regulations (EU) No 912/2010,
(EU) No 1285/2013 and (EU) No 377/2014 and Decision No 541/2014/EU [1], insofar
as it concerns the rules applicable to the component referred to in point (c) of Article
3, paragraph 1 of that Regulation (“Copernicus”);

b) Regulation (EU) 2021/695 of the European Parliament and of the Council of

–
28 April 2021 establishing Horizon Europe the Framework Programme for
Research and Innovation, laying down its rules for participation and dissemination,
and repealing Regulations (EU) No 1290/2013 and (EU) No 1291/2013 [2], insofar as it
concerns the rules applicable to the components referred to in paragraph 2(a) and (b)
of Article 1 of that Regulation; and

c) Council Decision (EU) 2021/764 of 10 May 2021 establishing the Specific

–
Programme implementing Horizon Europe the Framework Programme for
Research and Innovation, and repealing Decision 2013/743/EU [3] . [.]

(2) This Protocol shall not apply to award procedures which implement budgetary
commitments for 2021, 2022 and 2023.

_Article 2: Duration of the United Kingdom’s participation_

(1) The United Kingdom shall participate in the Union programmes and activities, or
parts thereof, referred to in Article 1 of this Protocol from 1 January 2024 for their
remaining duration or until the end of the multiannual financial framework 20212027, whichever is shorter.

(2) The United Kingdom or United Kingdom entities shall be eligible under the
conditions laid down in Article 711, with regard to Union award procedures, which
implement the budgetary commitments of the programmes and activities or parts
thereof, referred to in Article 1 of this Protocol within the time limits set out in the
first paragraph of this Article. The United Kingdom or United Kingdom entities shall
not be eligible for Union funding under Union award procedures which implement
budgetary commitments for 2021, 2022 and 2023, without prejudice to the applicable
eligibility rules for entities of non-associated countries laid down in the basic act or
other rules pertaining to the implementation of the Union programme or activity.

_Article 3: Specific terms and conditions of participation in Copernicus_

(1) Subject to the provisions of the Trade and Cooperation Agreement and in particular
of Article 711, the United Kingdom shall participate in Copernicus and benefit from
Copernicus services and products in the same way as other participating countries.

1 OJ L 170, 12.5.2021, p. 69.
2 OJ L 170, 12.5.2021, p. 1.
3 OJ L 167I, 12.5.2021, p. 1.

# EN 1 EN

(2) The United Kingdom shall have full access to the Copernicus Emergency
Management Service and shall notify to the European Commission the national focal
point that will act as Authorised Copernicus Management Service User.

(3) The United Kingdom shall have access as authorised user to the Copernicus Security
Service components to the extent the cooperation between the parties in the relevant
policy areas is agreed. The modalities of activation and use shall be subject to
specific agreements. Detailed rules for the access to such services shall be laid down
in the respective agreements including in relation to the specific operation of Articles
718 (4), 719 (4) and 720 (5).

(4) For the purposes of paragraph 3, negotiations between the United Kingdom and the
Union shall start as soon as possible after the participation of the United Kingdom in
Copernicus has been established in this Protocol and in accordance with the
provisions governing the access to such services. Should such an agreement be
substantially delayed or prove impossible, the Specialised Committee on
Participation on Union Programmes shall examine how to adjust the participation of
the United Kingdom in Copernicus and its financing taking into account this
situation.

(5) Participation by the United Kingdom's representatives in the Security Accreditation
Board meetings shall be governed by the rules and procedures for participating in
this board taking into account the status of the United Kingdom as a third country.

_Article 4: Specific terms and conditions of participation in the Horizon Europe programme_

(1) Subject to Article 6, the United Kingdom shall participate as an associated country in
all parts of the Horizon Europe programme as referred to in Article 4 of Regulation
(EU) 2021/695 implemented through the specific programme established by
Decision (EU) 2021/764 and through a financial contribution to the European
Institute of Innovation and Technology established by Regulation (EU) 2021/819 of
the European Parliament and of the Council of 20 May 2021 on the European
Institute of Innovation and Technology (recast).

(2) Subject to the provisions of the Trade and Cooperation Agreement and in particular
of Article 711, United Kingdom entities may participate in the activities of the Joint
Research Centre (“JRC”) and in indirect actions under equivalent conditions as those
applicable to Union entities.

(3) Where the Union adopts measures for the implementation of Articles 185 and 187 of
the Treaty on the Functioning of the European Union, the United Kingdom and
United Kingdom entities may participate in the legal structures created under those
provisions, in conformity with the Union legal acts relating to the establishment of
these legal structures.

(4) Regulation (EU) 2021/819 [4] or the Union legal act replacing that regulation, and
Decision (EU) 2021/820 of the European Parliament and of the Council of 20 May
2021 on the Strategic Innovation Agenda of the European Institute of Innovation and
Technology (EIT) 2021-2027: Boosting the Innovation Talent and Capacity of
Europe and repealing Decision No. 1312/2013/EU [5], shall apply to participation of

4 OJ L 189, 28.5.2021, p. 61.
5 OJ L 189, 28.5.2021, p. 91.

# EN 2 EN

United Kingdom entities in Knowledge and Innovation Communities in conformity
with Article 711.

(5) Where United Kingdom entities participate in the activities of the JRC,
representatives of the United Kingdom shall have the right to participate as observers
in the Board of Governors of the JRC, without voting rights. Subject to that
condition, such participation shall be governed by the same rules and procedures as
those applicable to representatives of Member States, including speaking rights and
procedures for receipt of information and documentation in relation to a point that
concerns the United Kingdom.

(6) For the purposes of calculating the operational contribution pursuant to Article
714(5) the initial commitment appropriations entered in the Union budget
definitively adopted for the applicable year for financing Horizon Europe, including
the support expenditure of the programme, shall be increased by the appropriations
corresponding to external assigned revenue under Article 2 paragraph 2 letter (a)
point (iv) of Council Regulation (EU) 2020/2094 of 14 December 2020 establishing
a European Union Recovery Instrument to support the recovery in the aftermath of
the COVID-19 crisis [6] .

(7) United Kingdom rights of representation and participation in the European Research
Area Committee and its subgroups shall be those applicable to associated countries.

The United Kingdom may participate in a European Research Infrastructure Consortium
(“ERIC”) in accordance with the legal acts establishing that ERIC and taking into account its
participation in Horizon 2020 in accordance with the terms which apply to that participation
before this Protocol entered into force and its participation in Horizon Europe as established
in this Protocol.

_Article 5: Modalities on the application of an automatic correction mechanism to the Horizon_
_Europe programme under Article 716_

(1) Article 716 shall apply to the Horizon Europe programme.

(2) The following modalities shall apply:

(a) For the purposes of calculating the automatic correction, ‘competitive grants’
means grants awarded through calls for proposals where the final beneficiaries
can be identified at the time of the calculation of the automatic correction with
the exception of financial support to third parties as defined in Article 204 of
the Financial Regulation [7] applicable to the general budget of the Union;

(b) Where a legal commitment is signed with a coordinator of a consortium, the
amounts used to establish the initial amounts of the legal commitment referred
to in Article 716 (1) shall be the cumulative initial amounts allocated in the
legal commitment to members of a consortium that are United Kingdom
entities;

6 OJ L 433I, 22.12.2020, p. 23;.
7 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 (OJ EU L 193, 30.7.2018, p. 1).

# EN 3 EN

(c) All amounts of legal commitments shall be established using the European
Commission electronic system eCorda;

(d) ‘Non-intervention costs’ means operational programme costs other than
competitive grants, including support expenditure, programme-specific
administration and other actions [8] ; and

(e) Amounts allocated to international organisations as legal entities being the final
beneficiary [9] shall be considered as non-intervention costs.

(3) The mechanism shall be applied as follows:

(a) Automatic corrections for year N in relation to the execution of commitment
appropriations for year N shall be applied based on data on year N and year
N+1 from eCorda referred to in point (c) of paragraph 2 in year N+2 after any
adjustments pursuant to Article 714(8) have been applied to the United
Kingdom’s contribution to Horizon Europe. The amount considered will be the
amount of competitive grants for which the data is available.

(b) The amount of the automatic correction shall be calculated by taking the
difference between:

(i) the total amount of these competitive grants apportioned to United
Kingdom entities as commitments made on budget appropriations of year N;
and

(ii) the amount of the United Kingdom adjusted contribution for year N
multiplied by the ratio between:

(A) the amount of competitive grants made on commitment
appropriations of year N for this programme, and

(B) the total of all the legal commitments made on commitment
appropriations of year N, including support expenditure.

Where any adjustment for situations where United Kingdom entities are
excluded, is made, pursuant to the application of Article 714(8), the
corresponding competitive grant amounts shall not be included in the
calculation.

(4) If in relation to the United Kingdom’s operational contribution for a given year N,
the amount of the difference calculated in accordance with the method laid down in
Article 716(2) is negative and in absolute terms exceeds 16% of the corresponding
operational contribution for year N, the future operational contribution of the United
Kingdom for year N+2 shall be reduced by the difference between the absolute
amount calculated in accordance with the method laid down in Article 716(2) for
year N, and the amount which corresponds to 16% of the corresponding operational
contribution for year N.

8 “Other actions” might include prizes, financial instruments, provision of technical/scientific services by
JRC, Subscriptions (OECD, Eureka, IPEEC, IEA, …), delegation agreements, Experts (evaluators,
monitoring of projects).
9 International organisations would only be considered as non-intervention costs if they are final
beneficiaries. This will not apply where an international organization is a coordinator of a project
(distributing funds to other coordinators).

# EN 4 EN

After the end of the period referred to in paragraph 1 of Article 2 of this Protocol,
any reductions of future operational contributions, as referred to in the first
subparagraph of this paragraph, shall be applied to operational contributions of the
United Kingdom to a succeeding programme in which the United Kingdom
participates.

If the operational contribution of the United Kingdom is adjusted in year N+2 in
accordance with the first and second subparagraphs, such adjustment shall be taken
into account for the purpose of calculating the annual amount for year N+2 in
accordance with paragraph 4 of Annex 47.

_Article 6: Exclusion from the European Innovation Council Fund_

(1) The United Kingdom and United Kingdom entities shall not participate in the
European Innovation Council (“EIC”) Fund established under Horizon Europe. The
EIC Fund is the financial instrument which is the part of the EIC Accelerator of
Horizon Europe that provides investment through equity or other repayable form [10] .

(2) As from 2024, and until 2027, each year, the contribution of the United Kingdom to
Horizon Europe shall be adjusted by an amount obtained by multiplying the
estimated amounts to be allocated to beneficiaries of the EIC Fund established under
the programme, excluding the amount stemming from repayments and reflows, by
the contribution key as defined in Article 714(6).

(3) Following any year N in which an adjustment has been made under paragraph 2, the
United Kingdom’s contribution shall in subsequent years be adjusted upwards or
downwards, by multiplying the difference between the estimated amount allocated to
beneficiaries of the EIC Fund, as referred in Article 6(2) of this Protocol, and the
amount allocated to beneficiaries of the EIC Fund in year N, by the contribution key,
as defined in Article 714(6).

_Article 7: Reciprocity_

For the purpose of this article "Union entity" means any type of entity, whether a natural
person, legal person or another type of entity, who resides or which is established in the
Union.

Eligible Union entities may participate in programmes of the United Kingdom equivalent to
those referred in points (b) and (c) of Article 1 of this Protocol in accordance with United
Kingdom law and rules.

_Article 8: Intellectual property_

For the programmes and activities listed in Article 1 of this Protocol and subject to the
provisions of the Trade and Cooperation Agreement and in particular of Article 711, United
Kingdom entities participating in programmes covered by this Protocol shall, as regards
ownership, exploitation and dissemination of information and intellectual property arising
from such participation, have equivalent rights and obligations as entities established in the

10 In accordance with Article 11(3) of Council Decision (EU) 2021/764 of 10 May 2021 establishing the

–
Specific Programme implementing Horizon Europe the Framework Programme for Research and
Innovation and repealing Decision 2013/743/EU, and its Annex I, Pillar III, section 1, the EIC Fund
will manage only the “investment” components of the EIC Accelerator support. United Kingdom
entities may hence only participate in the grant or other non-repayable forms of support provided under
the EIC Accelerator.

# EN 5 EN

Union participating in the programmes and activities in question. This provision shall not
apply to the results obtained from projects started before the application of this Protocol.

# EN 6 EN

**Protocol II**

on access of the United Kingdom to services established under certain Union programmes and

activities in which the United Kingdom does not participate

_Article:1 Scope of the access_

The United Kingdom shall have access to the following services under the terms and
conditions established in the Trade and Cooperation Agreement, the basic acts and any other
rules pertaining to the implementation of the relevant Union programmes and activities:

a) Space Surveillance and Tracking (“SST”) Services as defined in Article 55 of

Regulation (EU) 2021/696 [1] the Space Regulation.

Pending the entry into force of the implementing acts setting the third country conditions to
the three publicly available SST services, SST services as referred to in Article 5.1 of
Decision 541/2014/EU shall be provided to the United Kingdom and public and private
spacecraft owners and operators operating in or from the United Kingdom in accordance with
Article 5.2 of that Decision (or any legislation replacing it with or without modification).

_Article 2: Duration of the access_

The United Kingdom shall have access to the services referred to in Article 1 for the
remaining duration or until the end of the multiannual financial framework 2021-2027,
whichever is shorter.

_Article 3: Specific terms and conditions for access to SST services_

Access of the United Kingdom to publicly available SST services referred to in point (a), (b)
and (c) of Article 55(1) of that Regulation shall be granted in accordance with Article 8(2) of
Regulation (EU) 2021/696, upon request and subject to conditions applicable to third
countries.
Access of the United Kingdom to SST services referred to in point (d) of Article 55(1) of
Regulation (EU) 2021/696 shall, when available, be subject to conditions applicable to third
countries.

1 Regulation (EU) 2021/696 of the European Parliament and of the Council establishing the space
programme of the Union and the European Union Agency for the Space Programme and repealing
Regulations (EU) No 912/2010, (EU) No 1285/2013, (EU) No 377/2014 and Decision 541/2014/EUOJ
L 170, 12.5.2021, p. 69.

# EN 7 EN