CELEX: 52021PC0220
Language: en
Date: 2021-04-30 00:00:00
Title: Recommendation for a COUNCIL DECISION authorising the opening of negotiations on behalf of the European Union for the conclusion of an Agreement between the European Union and the Faroe Islands on the general principles for the participation of the Faroe Islands in Union programmes and the association of the Faroe Islands to Horizon Europe – the Framework Programme for Research and Innovation (2021-2027)

EUROPEAN COMMISSION
            Brussels, 30.4.2021
            COM(2021) 220 final
            Recommendation for a
            COUNCIL DECISION 
            authorising the opening of negotiations on behalf of the European Union for the conclusion of an Agreement between the European Union and the Faroe Islands on the general principles for the participation of the Faroe Islands in Union programmes and the association of the Faroe Islands to Horizon Europe – the Framework Programme for Research and Innovation (2021-2027)
            
               
         
         
            
               EXPLANATORY MEMORANDUM
            
            
               1.CONTEXT OF THE RECOMMENDATION
            
            
               
                  With this recommendation, the European Commission recommends that the Council of the European Union authorises the opening of negotiations between the European Union and the Faroe Islands on an agreement covering the participation of the Faroe Islands to any Union programme and on associating the Faroe Islands to Horizon Europe – the Union’s Framework Programme for Research and Innovation for the period 2021-2027. 
               
            
            
               2.RELATIONS WITH THE FAROE ISLANDS
            
            
               
                  Formal relations between the EU and the Faroe Islands are currently based on separate bilateral agreements dealing with fisheries (1980), the trade in goods (1997), and Faroese participation in the Union framework programme for research and innovation (of 2010 and 2014, both agreements limited in duration to the duration of the respective Union FP). The Faroe Islands became formally associated to the Seventh Framework Programme (FP7) in 2010, and a range of European projects attest to the active involvement of Faroese researchers and institutes in areas such as environment, oceanology, climate change, ecosystems and fisheries management. Faroese association to the Eight Framework Programme - Horizon 2020  - as of 2014 gave researchers, research institutes and enterprises in the Faroe Islands full access to Union funding and collaborative activities for research and innovation on an equal footing with entities from Member States and other third countries that are also associated to Horizon 2020. This participation has become very important for the research community of the Faroe Islands, and represents an important new and successful pillar of the Faroese-EU relations. With the agreements on the association to the Union FP being limited in time to the duration of each subsequent EU programme, there is currently no international agreement in place regulating participation of Faroese entities in Horizon Europe or fostering the scientific, research and innovation cooperation between the EU and Faroese research communities. 
               
            
            
               3.BACKGROUND - THE AGREEMENT COVERING THE PARTICIPATION OF THE FAROE ISLANDS TO ANY UNION PROGRAMME AND THE PROGRAMME-SPECIFIC PROVISIONS
            
            
               
                  On 14 May 2020, by a Letter of Intent, the Faroe Islands has expressed its formal interest to associate to Horizon Europe. Paragraph (1)(d) of Article [16] of the Horizon Europe Regulation concerning the association of third countries to the programme provides that third countries and other territories participate in the programme on the basis of an agreement covering the participation of the third country to any Union programme. The Faroe Islands fulfils the criteria for association of third countries to the Horizon Europe Framework Programme, as set forth by the Horizon Europe Regulation, notably, since it has a good capacity in science, technology and innovation; is committed to a rules-based open market economy, including fair and equitable dealing with intellectual property rights, respect of human rights, and backed by democratic institutions; and actively promotes policies to improve the economic and social well-being of their citizens.
               
               
                  In order to ensure the uninterrupted association of the Faroe Islands with the EU’s R&I Framework Programmes and to establish the general framework for its participation in any Union programme, it is recommended to authorise the opening of negotiations on an agreement with the following content: 
               
            
            
               ·The general principles relevant for participation, to any Union programme, including financial contributions of the third country;
            
            
               ·Programme-specific terms and conditions regarding the association of the Faroe Islands to the Horizon Europe Framework Programme, subject to the terms and conditions therein. 
            
            
               
                  The proposed agreement will set out the general conditions applicable for any eventual participation, to other the Union programmes, to be complemented with programme-specific terms and conditions, in the form of protocols to the agreement, which may be negotiated in the future should the two parties find it in their mutual interest. 
               
               
                  Regarding the programme-specific terms and conditions providing for the association of the Faroe Islands to the Horizon Europe Framework Programme, they should provide for association to all parts of the Programme, except for the specific programme on defence research established by [Regulation …/…/EU Regulation of the European Parliament and of the Council establishing the European Defence Fund]. This will ensure the continuity of the previous full association to Horizon 2020, and its predecessor FP7 (the Faroe Islands have been fully associated to the Framework Programme in Research and Innovation since 2010). Whilst the structure and the dimension of the Faroese R&I system have resulted in a limited participation in Pillar I and III mono-beneficiary instruments (mainly SME instrument), a significant part of the EU contribution was going to collaborative actions under the previous Framework Programme. This participation has been assessed as beneficial to both parties, with a particular value-added in thematic areas such as environment, health and food, as well as ocean research. The Faroe Islands have been a net contributor to the last Framework Programmes by a significant margin. The proposed agreement will set out fair and balanced conditions concerning the financial contribution of the Faroe Islands. The agreement will also build on the Horizon 2020 experience and, as in the previous association agreement, include a reciprocity clause, ensuring that researchers and legal entities established in the Union have as far as possible access to participate to the Faroese research and innovation programmes that are equivalent to the Horizon Europe Framework Programme, in accordance with the conditions laid down in the domestic legislation of the Faroe Islands. 
               
            
            
               4.LEGAL BASIS
            
            
               
                  The procedural legal basis for the recommended  decision is paragraph (3) and (4) of Article 218 TFEU.
               
            
            
               Recommendation for a
            
            
               COUNCIL DECISION
            
            
               authorising the opening of negotiations on behalf of the European Union for the conclusion of an Agreement between the European Union and the Faroe Islands on the general principles for the participation of the Faroe Islands in Union programmes and the association of the Faroe Islands to Horizon Europe – the Framework Programme for Research and Innovation (2021-2027)
            
            
               THE COUNCIL OF THE EUROPEAN UNION,
            
            
               Having regard to the Treaty on the Functioning of the European Union, and in particular Article 218(3) and (4) thereof, 
            
         
         
            
               Having regard to the recommendation from the European Commission, 
            
            
               Whereas the negotiations should be opened with a view to concluding an agreement on the general principles  for the participation of the Faroe Islands in Union programmes and the association of the Faroe Islands to Horizon Europe – the Framework Programme for Research and Innovation (2021-2027),
            
            
               HAS ADOPTED THIS DECISION: 
            
            
               Article 1
            
            
               The European Commission is hereby authorised to negotiate, on behalf of the Union, an agreement on the general principles for the participation of the Faroe Islands in Union programmes and the association of the Faroe Islands to Horizon Europe – the Framework Programme for Research and Innovation (2021-2027).
            
            
               Article 2
            
            
               The negotiating directives are set out in the annex to this Decision.
            
            
               Article 3
            
            
               The negotiations shall be conducted in consultation with the [Special Committee provided for in Article 218 (4) TFEU].
            
            
               Article 4
            
            
               This Decision is addressed to the European Commission.
            
            
               Done at Brussels,
            
            
               
                     For the Council
               
               
                     The President
               
            
         
         
      
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               EUROPEAN COMMISSION
            Brussels, 30.4.2021
            COM(2021) 220 final
            ANNEX 
            to the
            Recommendation for aCOUNCIL DECISION
            authorising the opening of negotiations on behalf of the European Union for the conclusion of an Agreement between the European Union and the Faroe Islands on the general principles for the participation of the Faroe Islands in Union programmes and the association of the Faroe Islands to Horizon Europe – the Framework Programme for Research and Innovation (2021-2027)
            
               
         
         
            
               ANNEX
            
            
               DIRECTIVES FOR THE NEGOTIATION OF AN AGREEMENT BETWEEN the European Union and the Faroe Islands on the general principles for the participation of the Faroe Islands in Union programmes and the association of the Faroe Islands to Horizon Europe – the Framework Programme for Research and Innovation (2021-2027)
            
            
               1.The agreement should provide for the terms and conditions of the participation of the Faroe Islands to any Union programme. It shall:
            
            
               (a)ensure a fair balance as regards the contributions and benefits of the third country participating in the Union programmes; 
            
            
               (b)lay down the conditions of participation in the programmes, including the calculation of financial contributions to individual programmes and their administrative costs. These contributions shall constitute assigned revenues in accordance with Article 21 (5) of the Financial Regulation; 
            
            
               (c)not confer to the third country any decision-making power in respect of the Union programme; 
            
            
               (d)guarantee the rights of the Union to ensure sound financial management and to protect its financial interests.
            
            
               2.The general principles relevant for participation in any Union programme should be set by this agreement. The agreement should foresee that possible future associations of the Faroe Islands in further Union programmes should take the form of protocols to this agreement. Such protocols should be adopted by a body established under the agreement.    
            
            
               3.Subject to the entry into force of [Regulation of the European Parliament and of the Council establishing Horizon Europe – the Framework Programme for Research and Innovation], the agreement should provide for the terms and conditions of the participation of the Faroe Islands to all parts of Horizon Europe – the Framework Programme for Research and Innovation (2021-2027) implemented through the specific programme established by [Decision …/… on establishing the specific programme implementing Horizon Europe – the Framework Programme for Research and Innovation] and through a financial contribution to the European Institute of Innovation and Technology (EIT). Those terms and conditions should be in line with [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, Decision XXX of [date] of the European Parliament and of the Council on establishing the specific programme implementing Horizon Europe – the Framework Programme for Research and Innovation] and any other rules pertaining to the implementation of the Programme.
            
            
               4.The agreement should determine the level of financial contribution payable by the Faroe Islands to the general budget of the Union.
            
            
               5.The agreement should provide for an observer status of the Faroe Islands to the Horizon Europe Programme Committee.
            
            
               6.The agreement should provide for a reciprocity clause ensuring reciprocal participation of legal entities established in the Union in equivalent programme(s) of the Faroe Islands, as far as possible.
            
            
               7.The agreement should set forth rules concerning sound financial management in relation to Union funding. In particular, the agreement should provide for the adequate protection of the financial interest of the Union, 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 penalties and the recovery of money. The European Commission (OLAF) may carry out administrative investigations, including on-the-spot checks and inspections, the European Public Prosecutor's Office may investigate and prosecute offences against the financial interests of the Union.
            
            
               8.The Commission should, during negotiations, assess the possibility to include a clause on provisional application. 
            
            
               9.The agreement should be in coherence with related EU policies and objectives.