Article 1 Establishment
1. For the implementation of the initiative on European High Performance Computing, a Joint Undertaking within the meaning of Article 187 of the Treaty on the Functioning of the European Union (TFEU) (the ‘European High Performance Computing Joint Undertaking’, the ‘Joint Undertaking’) is hereby established for a period until 31 December 2033. 2. In order to take into account the duration of the MFF 2021-2027 and of Horizon Europe, the Digital Europe Programme and the Connecting Europe Facility, calls for proposals and calls for tenders under this Regulation shall be launched by 31 December 2027. In duly justified cases, calls for proposals or calls for tenders may be launched by 31 December 2028. 3. The Joint Undertaking shall have legal personality. In each Member State, it shall enjoy the most extensive legal capacity accorded to legal persons under the laws of that Member State. It may, in particular, acquire or dispose of movable and immovable property and may be a party to legal proceedings. 4. The seat of the Joint Undertaking shall be located in Luxembourg. 5. The Statutes of the Joint Undertaking (‘the Statutes’) are set out in the Annex.
Article 2 Definitions
For the purposes of this Regulation, the following definitions apply: (1) ‘acceptance test’ means a test conducted to determine if the requirements of the system specification are met by a EuroHPC supercomputer; (2) ‘access time’ means the computing time of a supercomputer that is made available to a user or a group of users to execute their computer programmes; (3) ‘affiliated entity’ means any legal entity as defined in Article 187(1) of Regulation (EU, Euratom) 2018/1046; (4) ‘Centre of Excellence in High Performance Computing’ means a collaborative project selected in an open and competitive call for proposals to promote the use of upcoming extreme performance computing capabilities enabling user communities in collaboration with other High Performance Computing stakeholders to scale up existing parallel codes towards exascale and extreme scaling performance; (5) ‘co-design’ means a collective approach between technology suppliers and users engaged in a collaborative and iterative design process for developing new technologies, applications and systems; (6) ‘conflict of interest’ means a situation involving a financial actor or other person as referred to in Article 61 of Regulation (EU, Euratom) 2018/1046; (7) ‘constituent entity’ means an entity that constitutes a Private Member of the Joint Undertaking, pursuant to the statutes of each Private Member; (8) ‘consortium of private partners’ means an association of Union legal entities coming together for the purpose of acquiring jointly with the Joint Undertaking an industrial-grade supercomputer; one or more of these private partners may be participating in the Private Members of the Joint Undertaking; (9) ‘EuroHPC supercomputer’ means any computing system fully owned by the Joint Undertaking or co-owned with other Participating States or a consortium of private partners; it can be a classical supercomputer (high-end supercomputer, industrial-grade supercomputer, or mid-range supercomputer), a hybrid classical-quantum computer, a quantum computer or a quantum simulator; (10) ‘exascale’ means a performance level capable of executing ten to the power of eighteen operations per second (or 1 Exaflop); (11) ‘high-end supercomputer’ means a world-class computing system developed with the most advanced technology available at a given point in time and achieving at least exascale levels of performance or beyond (i.e. post-exascale) for applications addressing problems of greater complexity; (12) ‘hosting consortium’ means a group of Participating States or a consortium of private partners that have agreed to contribute to the acquisition and operation of a EuroHPC supercomputer, including any organisations representing these Participating States; (13) ‘hosting entity’ means a legal entity which includes facilities to host and operate a EuroHPC supercomputer and which is established in a Participating State that is a Member State; (14) ‘hyper-connected’ means a communication capability of transferring data at 10 to the power of twelve bits per second (1 Terabit per second) or beyond; (15) ‘industrial-grade supercomputer’ means at least a mid-range supercomputer specifically designed with security, confidentiality and data integrity requirements for industrial users that are more demanding than for a scientific use; (16) ‘in-kind contributions to indirect actions’ funded from Horizon Europe means contributions by the Participating State or the Private Members of the Joint Undertaking or their constituent entities or their affiliated entities, consisting of the eligible costs incurred by them in implementing indirect actions less the contribution of that Joint Undertaking, of the Participating States of that Joint Undertaking and of any other Union contribution to those costs; (17) ‘in-kind contributions to actions’ funded from the Digital Europe Programme or the Connecting Europe Facility means contributions by the Participating State or the Private Members of the Joint Undertaking or their constituent entities or their affiliated entities, consisting of the eligible costs incurred by them in implementing part of the activities of the Joint Undertaking less the contribution of that Joint Undertaking, of the Participating States of that Joint Undertaking and of any other Union contribution to those costs; (18) ‘mid-range supercomputer’ means a world-class supercomputer with at most one order of magnitude lower performance level than a high-end supercomputer; (19) ‘national High Performance Computing Competence Centre’ means a legal entity, or a consortium of legal entities, established in a Participating State, associated with a national supercomputing centre of that Participating State, providing users from industry, including SMEs, academia, and public administrations with access on demand to the supercomputers and to the latest High Performance Computing technologies, tools, applications and services, and offering expertise, skills, training, networking and outreach; (20) ‘observer State’ means a country eligible to participate in the actions of the Joint Undertaking funded by Horizon Europe or the Digital Europe Programme that is not a Participating State; (21) ‘Participating State’ means a country that is a member of the Joint Undertaking; (22) ‘performance level’ means the number of floating point operations per second (flops) that a supercomputer can execute; (23) ‘Private Member’ means any member of the Joint Undertaking other than the Union or Participating States; (24) ‘quantum computer’ means a computing device that harnesses the laws of quantum mechanics to solve certain particular tasks using therefore fewer computational resources than classical computers; (25) ‘quantum simulator’ means a highly controllable quantum device that allows to obtain insights into properties of complex quantum systems or to solve specific computational problems inaccessible to classical computers; (26) ‘security of the supply chain’ of a EuroHPC supercomputer means the measures to include in the selection of any supplier of this supercomputer to ensure the availability of components, technologies, systems and knowhow required in the acquisition and operation of this supercomputer; this includes measures for mitigating the risks related to eventual disruptions in the supply of such components, technologies, and systems, including price changes or lower performance or alternative sources of supply; it covers the whole lifetime of the EuroHPC supercomputer; (27) ‘Strategic Research and Innovation Agenda’ means the document covering the duration of Horizon Europe that identifies the key priorities and the essential technologies and innovations required to achieve the objectives of the Joint Undertaking; (28) ‘multiannual strategic programme’ means a document laying out a strategy for all the activities of the Joint Undertaking; (29) ‘supercomputing’ means computing at performance levels requiring the massive integration of individual computing elements, including quantum components, for solving problems which cannot be handled by standard computing systems; (30) ‘total cost of ownership’ of a EuroHPC supercomputer means the acquisition costs plus the operating costs, including maintenance, until the ownership of the supercomputer is transferred to the hosting entity or is sold, or until the supercomputer is decommissioned without transfer of ownership; (31) ‘work programme’ means the document referred to in Article 2, point (25), of Regulation (EU) 2021/695 or, where relevant, the document which also functions as the work programme referred to in Article 24 of Regulation (EU) 2021/694, or Article 19 of Regulation (EU) 2021/1153.
Amendment rationale: CONTEXT OF THE PROPOSAL Reasons for and objectives of the proposal Council Regulation (EU) 2021/117 3 , 1 repealing Council Regulation (EU) 2018/1488, 2 establishes th e European High Performance Computing Joint Undertaking and sets out its mission and objectives. The Joint Undertaking ’s mission is to develop, deploy, extend and maintain in the Union a world-leading federated, secure and hyper-connected supercomputing, quantum computing, service and data infrastructure ecosystem; to support the development and uptake of demand-oriented and user-driven innovative and competitive supercomputing systems based on a supply chain that will ensure the availability of components, technologies and knowledge , limit the risk of disruption , and enable the development of a wide range of applications optimised for these systems; and to widen the use of this supercomputing infrastructure to a large number of public and private users a s well as support ing the twin digital and green transition s and the development of key skills for European science and industry. In her 2023 State of the Union Address, 3 President Ursula von der Leyen announced a new initiative to make the Union ’s supercomputing capacity available to innovative European startups in trustworthy artificial intelligence ( AI ) to train their models. These models require substantial amounts of computing power to train and finetune the most advanced foundation models in order to unlock the full potential of AI, a requirement that can be met only with supercomputing . Given that the Union’s most powerful world-class supercomputing capacity is found in the European High Performance Computing (EuroHPC) Joint Undertaking’s (the “Joint Undertaking”) facilities, it is these facilities that will need to be made available in order for this initiative to become a reality. It is accordingly proposed to introduce a further objective for the Joint Undertaking, which will cover the contribution made by supercomputers to this new AI initiative of the Union. This new objective will allow the Joint Undertaking to support the further development of a highly competitive and innovative AI startup and research ecosystem in Europe, including the development and uptake of European AI solution, by operating AI Factories. It will consist of deploying and operating AI dedicated supercomputers co-located with large data centres or connected to data centres via very high speed networks, enhancing the performance of these supercomputers by regularly upgrading their AI capabilities; and, providing dedicated AI oriented supercomputing services in support of the AI startup, science and innovation ecosystem for the large scale training and development of general purpose, trustworthy and ethical AI models and systems, and of AI user communities for the development, validation and running of emerging AI applications, in particular in the areas of health and care, climate change, robotics, and connected and automated driving. It will also foster a talent development pool to provide advanced education, training, skilling and reskilling activities to relevant AI stakeholders. The AI Factories will establish synergies at EU level and will cooperate with and federate other relevant Union AI initiatives, such as the Artificial Intelligence On-Demand platform, the AI Testing and Experimentation Facilities, the EuroHPC Competence Centres, the EuroHPC Centres of Excellence, and any other emerging European AI initiative. These changes will enable the Joint Undertaking to offer tailored computing power and services to nurture large-scale AI training and development and uptake in the Union, which the current Regulation does not specifically foresee. 
Revised version (Article 2 Definitions):
For the purposes of this Regulation, the following definitions apply: (1) ‘acceptance test’ means a test conducted to determine if the requirements of the system specification are met by a EuroHPC supercomputer; (2) ‘access time’ means the computing time of a supercomputer that is made available to a user or a group of users to execute their computer programmes; (3) ‘affiliated entity’ means any legal entity as defined in Article 187(1) of Regulation (EU, Euratom) 2018/1046; (3a) ‘AI-optimised supercomputer’ means a supercomputer that is designed primarily for training large scale, general-purpose artificial intelligence (‘AI’) models and emerging AI applications; (3b) ‘AI factory’ means a centralised or distributed entity that provides an AI supercomputing service infrastructure which is composed of an AI-optimised supercomputer or an AI partition of a supercomputer, an associated data centre, dedicated access and AI-oriented supercomputing services, and which attracts and pools talent to provide the competences required to use the supercomputers for AI; (4) ‘Centre of Excellence in High Performance Computing’ means a collaborative project selected in an open and competitive call for proposals to promote the use of upcoming extreme performance computing capabilities enabling user communities in collaboration with other High Performance Computing stakeholders to scale up existing parallel codes towards exascale and extreme scaling performance; (5) ‘co-design’ means a collective approach between technology suppliers and users engaged in a collaborative and iterative design process for developing new technologies, applications and systems; (6) ‘conflict of interest’ means a situation involving a financial actor or other person as referred to in Article 61 of Regulation (EU, Euratom) 2018/1046; (7) ‘constituent entity’ means an entity that constitutes a Private Member of the Joint Undertaking, pursuant to the statutes of each Private Member; (8) ‘consortium of private partners’ means an association of Union legal entities coming together for the purpose of acquiring jointly with the Joint Undertaking an industrial-grade supercomputer; one or more of these private partners may be participating in the Private Members of the Joint Undertaking; (9) ‘EuroHPC supercomputer’ means any computing system which is fully owned by the Joint Undertaking or co-owned with other Participating States or a consortium of private partners and which is a classical supercomputer (high-end supercomputer, industrial-grade supercomputer, AI-optimised supercomputer or mid-range supercomputer), a hybrid classical-quantum computer, a quantum computer or a quantum simulator; (10) ‘exascale’ means a performance level capable of executing ten to the power of eighteen operations per second (or 1 Exaflop); (11) ‘high-end supercomputer’ means a world-class computing system developed with the most advanced technology available at a given point in time and achieving at least exascale levels of performance or beyond (i.e. post-exascale) for applications addressing problems of greater complexity; (12) ‘hosting consortium’ means a group of Participating States or a consortium of private partners that have agreed to contribute to the acquisition and operation of a EuroHPC supercomputer, including any organisations representing these Participating States; (13) ‘hosting entity’ means a legal entity which includes facilities to host and operate a EuroHPC supercomputer and which is established in a Participating State that is a Member State; (14) ‘hyper-connected’ means a communication capability of transferring data at 10 to the power of twelve bits per second (1 Terabit per second) or beyond; (15) ‘industrial-grade supercomputer’ means at least a mid-range supercomputer specifically designed with security, confidentiality and data integrity requirements for industrial users that are more demanding than for a scientific use; (16) ‘in-kind contributions to indirect actions’ funded from Horizon Europe means contributions by the Participating State or the Private Members of the Joint Undertaking or their constituent entities or their affiliated entities, consisting of the eligible costs incurred by them in implementing indirect actions less the contribution of that Joint Undertaking, of the Participating States of that Joint Undertaking and of any other Union contribution to those costs; (17) ‘in-kind contributions to actions’ funded from the Digital Europe Programme or the Connecting Europe Facility means contributions by the Participating State or the Private Members of the Joint Undertaking or their constituent entities or their affiliated entities, consisting of the eligible costs incurred by them in implementing part of the activities of the Joint Undertaking less the contribution of that Joint Undertaking, of the Participating States of that Joint Undertaking and of any other Union contribution to those costs; (18) ‘mid-range supercomputer’ means a world-class supercomputer with at most one order of magnitude lower performance level than a high-end supercomputer; (19) ‘national High Performance Computing Competence Centre’ means a legal entity, or a consortium of legal entities, established in a Participating State, associated with a national supercomputing centre of that Participating State, providing users from industry, including SMEs, academia, and public administrations with access on demand to the supercomputers and to the latest High Performance Computing technologies, tools, applications and services, and offering expertise, skills, training, networking and outreach; (20) ‘observer State’ means a country eligible to participate in the actions of the Joint Undertaking funded by Horizon Europe or the Digital Europe Programme that is not a Participating State; (21) ‘Participating State’ means a country that is a member of the Joint Undertaking; (22) ‘performance level’ means the number of floating point operations per second (flops) that a supercomputer can execute; (23) ‘Private Member’ means any member of the Joint Undertaking other than the Union or Participating States; (24) ‘quantum computer’ means a computing device that harnesses the laws of quantum mechanics to solve certain particular tasks using therefore fewer computational resources than classical computers; (25) ‘quantum simulator’ means a highly controllable quantum device that allows to obtain insights into properties of complex quantum systems or to solve specific computational problems inaccessible to classical computers; (26) ‘security of the supply chain’ of a EuroHPC supercomputer means the measures to include in the selection of any supplier of this supercomputer to ensure the availability of components, technologies, systems and knowhow required in the acquisition and operation of this supercomputer; this includes measures for mitigating the risks related to eventual disruptions in the supply of such components, technologies, and systems, including price changes or lower performance or alternative sources of supply; it covers the whole lifetime of the EuroHPC supercomputer; (27) ‘Strategic Research and Innovation Agenda’ means the document covering the duration of Horizon Europe that identifies the key priorities and the essential technologies and innovations required to achieve the objectives of the Joint Undertaking; (28) ‘multiannual strategic programme’ means a document laying out a strategy for all the activities of the Joint Undertaking; (29) ‘supercomputing’ means computing at performance levels requiring the massive integration of individual computing elements, including quantum components, for solving problems which cannot be handled by standard computing systems; (30) ‘total cost of ownership’ of a EuroHPC supercomputer means the acquisition costs plus the operating costs, including maintenance, until the ownership of the supercomputer is transferred to the hosting entity or is sold, or until the supercomputer is decommissioned without transfer of ownership; (31) ‘work programme’ means the document referred to in Article 2, point (25), of Regulation (EU) 2021/695 or, where relevant, the document which also functions as the work programme referred to in Article 24 of Regulation (EU) 2021/694, or Article 19 of Regulation (EU) 2021/1153.
Article 3 Mission and objectives
1. The mission of the Joint Undertaking shall be: to develop, deploy, extend and maintain in the Union a world-leading federated, secure and hyper-connected supercomputing, quantum computing, service and data infrastructure ecosystem; to support the development and uptake of demand-oriented and user-driven innovative and competitive supercomputing systems based on a supply chain that will ensure components, technologies and knowledge limiting the risk of disruptions and the development of a wide range of applications optimised for these systems; and, to widen the use of that supercomputing infrastructure to a large number of public and private users, and support the twin transition and the development of key skills for European science and industry. 3. The Joint Undertaking shall contribute to safeguarding the interests of the Union when procuring supercomputers and supporting the development and uptake of High Performance Computing technologies, systems and applications. It shall enable a co-design approach for the acquisition of world-class supercomputers, while safeguarding the security of the supply chain of procured technologies and systems. It shall contribute to the Union’s strategic autonomy, support the development of technologies and applications reinforcing the European High Performance Computing supply chain and promote their integration in supercomputing systems that address a large number of scientific, societal, environmental and industrial needs.
Article 4 Pillars of activity
2. In addition to the activities referred to in paragraph 1, the Joint Undertaking may be entrusted with the implementation of additional tasks in the event of cumulative, complementary or combined funding between Union programmes in accordance with the relevant Commission work programme.
Article 5 Union’s financial contribution
2. The Union financial contribution referred to in paragraph 1 shall be paid from the appropriations in the general budget of the Union allocated to each relevant programme. 3. Additional Union funds complementing the contribution referred to in paragraph 1 of this Article may be allocated to the Joint Undertaking to support its pillars of activities referred to in Article 4, except those referred to in Article 4(1)(a). 4. Contributions from Union programmes corresponding to additional activities entrusted to the Joint Undertaking in accordance with paragraph 3 shall not be accounted for in the calculation of the Union maximum financial contribution. 5. Additional Union funds complementing the contribution referred to in paragraph 1 of this Article may be allocated to the Joint Undertaking from third countries associated to Horizon Europe, the Digital Europe Programme or the Connecting Europe Facility in accordance with their respective association agreements. Those additional Union funds shall not affect the Participating States’ contribution referred to in Article 7(1), unless the Participating States agree otherwise. 6. The Union financial contribution referred to in paragraph 1(a) of this Article shall be used for the Joint Undertaking to provide financial support to indirect actions as defined in Article 2, point (43), of Regulation (EU) 2021/695, corresponding to the research and innovation activities of the Joint Undertaking. 7. The Union financial contribution referred to in paragraph 1(b) shall be used for capability building across the whole Union, including the acquisition, upgrade and operation of High Performance Computers, quantum computers or quantum simulators, the federation of the High Performance Computing and quantum computing service and data infrastructure and the widening of its use, and the development of advanced skills and training. 8. The Union financial contribution referred to in paragraph 1(c) shall be used for the interconnection of the High Performance Computing and data resources and the creation of an integrated pan-European hyper-connected High Performance Computing and data infrastructure.
Article 6 Other Union contributions
Contributions from Union programmes other than those referred to in Article 5(1) that are part of a Union co-financing to a programme implemented by one of the Participating States that is a Member State shall not be accounted for in the calculation of the Union maximum financial contribution referred to in Article 5.
Article 7 Contributions of members other than the Union
1. The Participating States shall make a total contribution that is commensurate to the Union’s contribution referred to in Article 5(1). The Participating States shall arrange among them their collective contributions and how they will deliver them. This shall not affect the ability of each Participating State to define its national financial contribution in accordance with Article 8. 2. The Private Members of the Joint Undertaking shall make or arrange for their constituent entities and affiliated entities to make contributions for at least EUR 900 000 000 to the Joint Undertaking. 3. The contributions referred to in paragraphs 1 and 2 of this Article shall consist of contributions as set out in Article 15 of the Statutes. 5. The members of the Joint Undertaking other than the Union shall report by 31 January of each year to the Governing Board as defined in Article 15 of the Statutes, on the value of the contributions referred to in paragraphs 1 and 2 of this Article made in the previous financial year.
Article 8 Management of contributions from the Participating States
1. Each Participating State shall make an indicative commitment of the amount of their national financial contributions in indirect actions to the Joint Undertaking. Such a commitment shall be made annually to the Joint Undertaking prior to the adoption of the work programme. In addition to the criteria set out in Article 22 of Regulation (EU) 2021/695, in Article 18 of Regulation (EU) 2021/694 or in Article 11 of Regulation (EU) 2021/1153, the work programme may include, as an annex, eligibility criteria regarding the participation of national legal entities. Each Participating State shall entrust the Joint Undertaking with the evaluation of the proposals in accordance with Horizon Europe rules. The selection of proposals shall be based on the ranking list provided by the evaluation committee. The Governing Board may deviate from that list in duly justified cases as set out in the work programme to ensure the overall consistency of the portfolio approach. Each Participating State shall have a right of veto on all issues concerning the use of its own national financial contributions to the Joint Undertaking for applicants established in those Participating States, on the basis of national strategic priorities. 2. Each Participating State shall conclude one or more administrative agreements with the Joint Undertaking laying down the coordination mechanism for the payment of and reporting on contributions to applicants established in that Participating State. Such an agreement shall include the schedule, conditions of payment, reporting and audit requirements. Each Participating State shall strive to synchronise its payment schedule, reporting and audits, with those of the Joint Undertaking and to converge its cost eligibility rules with Horizon Europe’s rules. 3. In the agreement referred to in paragraph 2, each Participating State may entrust the Joint Undertaking with the payment of its contribution to its beneficiaries. After the selection of proposals, the Participating State shall commit the amount necessary for payments. The audit authorities of the Participating State may audit their respective national contributions.
Article 9 Hosting entity
1. EuroHPC supercomputers shall be located in a Participating State that is a Member State. In case a Participating State is already hosting a EuroHPC supercomputer which is a high-end or a mid-range supercomputer, it shall not be eligible to participate in a new call for expression of interest for the incremental generation of such supercomputers before at least five years from the selection date following a previous call for expression of interest. In the case of the acquisition of quantum computers and quantum simulators, or the upgrade of a EuroHPC supercomputer with quantum accelerators, that period is reduced to two years. 2. For the EuroHPC supercomputers referred to in Articles 11, 12 and 14, the hosting entity may represent a Participating State that is a Member State or a hosting consortium. The hosting entity and the competent authorities of the Participating State or Participating States in a hosting consortium shall enter into an agreement to that effect. 3. The Joint Undertaking shall entrust to a hosting entity the operation of each individual EuroHPC supercomputer fully owned by the Joint Undertaking, or jointly owned in accordance with Articles 11, 12 and 14. 4. Hosting entities referred to in paragraph 2 of this Article shall be selected in accordance with paragraph 5 of this Article and the Joint Undertaking’s financial rules referred to in Article 19. 7. The selected hosting entity may decide to invite, subject to the prior agreement of the Commission, additional Participating States, or a consortium of private partners, to join the hosting consortium. The financial or in-kind contribution or any other commitment of the joining Participating States, or Private Members, shall not affect the Union financial contribution and the corresponding ownership rights and percentage of access time allocated to the Union with regard to that EuroHPC supercomputer as defined in Articles 11, 12, 13, and 14.
Amendment rationale: CONTEXT OF THE PROPOSAL Reasons for and objectives of the proposal Council Regulation (EU) 2021/117 3 , 1 repealing Council Regulation (EU) 2018/1488, 2 establishes th e European High Performance Computing Joint Undertaking and sets out its mission and objectives. The Joint Undertaking ’s mission is to develop, deploy, extend and maintain in the Union a world-leading federated, secure and hyper-connected supercomputing, quantum computing, service and data infrastructure ecosystem; to support the development and uptake of demand-oriented and user-driven innovative and competitive supercomputing systems based on a supply chain that will ensure the availability of components, technologies and knowledge , limit the risk of disruption , and enable the development of a wide range of applications optimised for these systems; and to widen the use of this supercomputing infrastructure to a large number of public and private users a s well as support ing the twin digital and green transition s and the development of key skills for European science and industry. In her 2023 State of the Union Address, 3 President Ursula von der Leyen announced a new initiative to make the Union ’s supercomputing capacity available to innovative European startups in trustworthy artificial intelligence ( AI ) to train their models. These models require substantial amounts of computing power to train and finetune the most advanced foundation models in order to unlock the full potential of AI, a requirement that can be met only with supercomputing . Given that the Union’s most powerful world-class supercomputing capacity is found in the European High Performance Computing (EuroHPC) Joint Undertaking’s (the “Joint Undertaking”) facilities, it is these facilities that will need to be made available in order for this initiative to become a reality. It is accordingly proposed to introduce a further objective for the Joint Undertaking, which will cover the contribution made by supercomputers to this new AI initiative of the Union. This new objective will allow the Joint Undertaking to support the further development of a highly competitive and innovative AI startup and research ecosystem in Europe, including the development and uptake of European AI solution, by operating AI Factories. It will consist of deploying and operating AI dedicated supercomputers co-located with large data centres or connected to data centres via very high speed networks, enhancing the performance of these supercomputers by regularly upgrading their AI capabilities; and, providing dedicated AI oriented supercomputing services in support of the AI startup, science and innovation ecosystem for the large scale training and development of general purpose, trustworthy and ethical AI models and systems, and of AI user communities for the development, validation and running of emerging AI applications, in particular in the areas of health and care, climate change, robotics, and connected and automated driving. It will also foster a talent development pool to provide advanced education, training, skilling and reskilling activities to relevant AI stakeholders. The AI Factories will establish synergies at EU level and will cooperate with and federate other relevant Union AI initiatives, such as the Artificial Intelligence On-Demand platform, the AI Testing and Experimentation Facilities, the EuroHPC Competence Centres, the EuroHPC Centres of Excellence, and any other emerging European AI initiative. These changes will enable the Joint Undertaking to offer tailored computing power and services to nurture large-scale AI training and development and uptake in the Union, which the current Regulation does not specifically foresee. 
Revised version (Article 9 Hosting entity):
1. EuroHPC supercomputers shall be located in a Participating State that is a Member State. In case a Participating State is already hosting a EuroHPC supercomputer which is a high-end or a mid-range supercomputer, it shall not be eligible to participate in a new call for expression of interest for the incremental generation of such supercomputers before at least five years from the selection date following a previous call for expression of interest. In the case of the acquisition of quantum computers and quantum simulators, or the upgrade of a EuroHPC supercomputer with quantum accelerators, that period is reduced to two years. 2. For the EuroHPC supercomputers referred to in Articles 11, 12 and 14, the hosting entity may represent a Participating State that is a Member State or a hosting consortium. The hosting entity and the competent authorities of the Participating State or Participating States in a hosting consortium shall enter into an agreement to that effect. 3. The Joint Undertaking shall entrust to a hosting entity the operation of each individual EuroHPC supercomputer fully owned by the Joint Undertaking, or jointly owned in accordance with Articles 11, 12 and 14. 4. Hosting entities referred to in paragraph 2 of this Article shall be selected in accordance with paragraph 5 of this Article and the Joint Undertaking’s financial rules referred to in Article 19. For the AI-optimised supercomputers the following additional selection criteria shall apply for the hosting entities: (a) proximity with an established datacentre or connection to an established datacentre via very high speed networks; (b) vision, plans and capability of the hosting entity to address the challenges of the AI startup ecosystem, the research and innovation ecosystem and the AI user community, and providing a supportive centralised or distributed AI-oriented supercomputing service; (c) quality and pertinence of experience and know-how available amongst the team that is expected to be in charge for the supportive AI-oriented supercomputing service environment; (d) plans for interaction and cooperation with other AI factories, with EuroHPC Competence Centres and EuroHPC Centres of Excellence and with relevant AI initiatives such as the hubs of Artificial Intelligence startups, the Artificial Intelligence and data ecosystems, the Artificial Intelligence Testing and Experimentation Facilities, the European central Artificial Intelligence platform, the Artificial Intelligence-oriented Digital Innovation Hubs and other related initiatives; (e) existing capabilities and future plans of the hosting entity to contribute to the development of the talent pool. 5a. An existing hosting entity may apply to become an AI factory. Following a call for expression of interest, an existing hosting entity shall be selected by the Governing Board through a fair and transparent process based, inter alia, on the selection criteria described in Article 9(5), second subparagraph, and provided that the hosting entity can demonstrate that its EuroHPC supercomputer has enough computing resources for training large scale, general-purpose AI models and emerging AI applications. 6a. For the AI-optimised supercomputers referred to in Article 12a, the hosting entity shall create a one-stop shop for users, including startups, small and medium-sized enterprises and scientific users, to facilitate access to its support services. 7. The selected hosting entity may decide to invite, subject to the prior agreement of the Commission, additional Participating States, or a consortium of private partners, to join the hosting consortium. The financial or in-kind contribution or any other commitment of the joining Participating States, or Private Members, shall not affect the Union financial contribution and the corresponding ownership rights and percentage of access time allocated to the Union with regard to that EuroHPC supercomputer as defined in Articles 11, 12, 13, and 14.
Article 10 Hosting agreement
1. The Joint Undertaking shall conclude a hosting agreement with each selected hosting entity prior to launching the procedure for the acquisition of a EuroHPC supercomputer. 3. The hosting agreement shall be governed by Union law, supplemented, for any matter not covered by this Regulation or by other Union legal acts, by the law of the Member State where the hosting entity is established. 4. The hosting agreement shall contain an arbitration clause, within the meaning of Article 272 TFEU, granting jurisdiction over all matters covered by the hosting agreement to the Court of Justice of the European Union. 5. After the hosting agreement is concluded, and without prejudice to paragraph 2 of this Article, the Joint Undertaking, supported by the selected hosting entity, shall launch the procedures for the acquisition of the EuroHPC supercomputer in accordance with the financial rules of the Joint Undertaking referred to in Article 19. 6. For mid-range supercomputers, after the hosting agreement is concluded, the Joint Undertaking, or the hosting entity shall launch on behalf of both contracting parties the procedures for the acquisition of the EuroHPC supercomputer in accordance with the financial rules of the Joint Undertaking referred to in Article 19.
Article 11 Acquisition and ownership of high-end supercomputers
1. The Joint Undertaking shall acquire the high-end supercomputers and shall own them. 2. The Union financial contribution referred to in Article 5(1) shall cover up to 50 % of the acquisition costs plus up to 50 % of the operating costs of the high-end supercomputers. The remaining total cost of ownership of the high-end supercomputers shall be covered by the Participating State where the hosting entity is established or by the Participating States in the hosting consortium, possibly supplemented by the contributions referred to in Article 6. 3. The selection of the supplier of the high-end supercomputer shall be based on tender specifications that shall take into account the user requirements and the general system specifications provided by the selected hosting entity in its application for the call for expression of interest. The selection shall also address the security of the supply chain. 4. The Joint Undertaking may act as first user and acquire high-end supercomputers that integrate demand-oriented, user driven and competitive technologies primarily developed in the Union. 5. The Governing Board may decide in the work programme, if duly justified for security reasons, to condition the participation of suppliers in the acquisition of the high-end supercomputers in accordance with Article 12(6) of Regulation (EU) 2021/694 or to limit the participation of suppliers for security reasons or actions directly related to the Union’s strategic autonomy, in accordance with Article 18(4) of that Regulation. 6. Without prejudice to the winding up of the Joint Undertaking, as referred to in Article 23(4) of the Statutes, at the earliest five years after the successful acceptance test by the Joint Undertaking of the high-end supercomputers installed in a hosting entity, the ownership of the high-end supercomputer may be transferred to the respective hosting entity, sold to another entity or decommissioned upon decision of the Governing Board and in accordance with the hosting agreement. In the case of transfer of ownership of a high-end supercomputer, the hosting entity shall reimburse the Joint Undertaking the residual value of the supercomputer that is transferred. If there is no transfer of ownership to the hosting entity but a decision for decommissioning, the relevant costs shall be shared equally by the Joint Undertaking and the hosting entity. The Joint Undertaking shall not be liable for any costs incurred after the transfer of ownership of the high-end supercomputer or after its sale or decommissioning.
Article 12 Acquisition and ownership of quantum computers and quantum simulators
1. The Joint Undertaking shall acquire quantum computers and quantum simulators, that could range from pilots and experimental systems to prototypes and operational systems as stand-alone machines or hybridised with high-end or mid-range High Performance Computing machines and accessible via the cloud, and shall own them. 2. The Union financial contribution referred to in Article 5(1) shall cover up to 50 % of the acquisition costs plus up to 50 % of the operating costs of the quantum computers and quantum simulators. The remaining total cost of ownership of the quantum computers and quantum simulators shall be covered by the Participating State where the hosting entity is established or by the Participating States in the hosting consortium, possibly supplemented by the contributions referred to in Article 6. 3. The selection of the supplier of the quantum computers and quantum simulators shall be based on tender specifications that shall take into account the user requirements and the general system specifications provided by the selected hosting entity in its application for the call for expression of interest. The selection shall also address the security of the supply chain. 4. The Joint Undertaking may act as first user and acquire quantum computers and quantum simulators that integrate technologies primarily developed in the Union. 5. The Governing Board may decide in the work programme, if duly justified for security reasons, to condition the participation of suppliers in the acquisition of the quantum computers and quantum simulators in accordance with Article 12(6) of Regulation (EU) 2021/694 or to limit the participation of suppliers for security reasons or actions directly related to the Union’s strategic autonomy, in accordance with Article 18(4) of that Regulation. 6. The quantum computers and quantum simulators shall be located in a hosting entity of a EuroHPC supercomputer or a supercomputing centre located in the Union. 7. Without prejudice to the winding up of the Joint Undertaking, as referred to in Article 23(4) of the Statutes, at the earliest four years after the successful acceptance test by the quantum computer or quantum simulator installed in a hosting entity, the ownership of the quantum computer or quantum simulator may be transferred to that hosting entity, sold to another entity or decommissioned upon decision of the Governing Board and in accordance with the hosting agreement. In the case of transfer of ownership of a quantum computer or quantum simulator, the hosting entity shall reimburse the Joint Undertaking the residual value of the supercomputer that is transferred. If there is no transfer of ownership to the hosting entity but a decision for decommissioning, the relevant costs shall be shared equally by the Joint Undertaking and the hosting entity. The Joint Undertaking shall not be liable for any costs incurred after the transfer of ownership of the quantum computer or quantum simulator or after its sale or decommissioning.
Article 13 Acquisition and ownership of industrial-grade EuroHPC supercomputers
1. The Joint Undertaking shall acquire, together with a consortium of private partners, at least mid-range supercomputers, or partitions of EuroHPC supercomputers, primarily destined for use by industry, and shall own them or co-own them with a consortium of private partners. 2. The Union financial contribution referred to in Article 5(1) shall cover up to 35 % of the acquisition costs of the EuroHPC supercomputers, or the partitions of the EuroHPC supercomputers. The remaining total cost of ownership of the EuroHPC supercomputers, or the partitions of the EuroHPC supercomputers, shall be covered by the consortium of private partners. 3. The selection of the supplier of an industrial-grade EuroHPC supercomputer shall be based on tender specifications that shall take into account the user requirements and the general system specifications provided by the selected hosting entity in its application for the call for expression of interest. The selection shall also address the security of the supply chain. 4. The Governing Board may decide in the work programme, if duly justified for security reasons, to condition the participation of suppliers in the acquisition of the industrial grade EuroHPC supercomputers in accordance with Article 12(6) of Regulation (EU) 2021/694 or to limit the participation of suppliers for security reasons or actions directly related to the Union’s strategic autonomy, in accordance with Article 18(4) of that Regulation. 5. The EuroHPC supercomputers or the EuroHPC supercomputer partitions for industrial use shall be hosted in a hosting entity of a EuroHPC supercomputer. 6. Without prejudice to the winding up of the Joint Undertaking, as referred to in Article 23(4) of the Statutes, at the earliest four years after the successful acceptance test by the Joint Undertaking of the EuroHPC supercomputers installed in a hosting entity, the ownership of the EuroHPC supercomputer may be transferred to the consortium of private partners, sold to another entity or decommissioned upon decision of the Governing Board and in accordance with the consortium of private partners. In the case of transfer of ownership of a EuroHPC supercomputer, the consortium of private partners shall reimburse the Joint Undertaking the residual value of the EuroHPC supercomputer that is transferred. If there is no transfer of ownership to the consortium of private partners but a decision for decommissioning, the relevant costs shall be covered by the consortium of private partners. The Joint Undertaking shall not be liable for any costs incurred after the transfer of ownership of the EuroHPC supercomputer or after its sale or decommissioning.
Article 14 Acquisition and ownership of the mid-range supercomputers
1. The Joint Undertaking shall acquire, jointly with the contracting authorities of the Participating State where the hosting entity is established or with the contracting authorities of the Participating States in the hosting consortium, the mid-range supercomputers and shall co-own them. 2. The Union financial contribution referred to in Article 5(1) shall cover up to 35 % of the acquisition costs and up to 35 % of operating costs of the mid-range supercomputers. The remaining total cost of ownership of the mid-range supercomputers shall be covered by the Participating State where the hosting entity is established or the Participating States in the hosting consortium, possibly supplemented by the contributions referred to in Article 6. 3. The selection of the supplier of the mid-range supercomputer shall be based on tender specifications that shall take into account the user requirements and the general system specifications provided by the selected hosting entity in its application for the call for expression of interest. The selection shall also address the security of the supply chain. 4. The Joint Undertaking may act as first user and acquire mid-range supercomputers that integrate demand-oriented, user driven and competitive technologies primarily developed in the Union. 5. The Governing Board may decide in the work programme, if duly justified for security reasons, to condition the participation of suppliers in the acquisition of the mid-range supercomputers in accordance with Article 12(6) of Regulation (EU) 2021/694 or to limit the participation of suppliers for security reasons or actions directly related to the Union’s strategic autonomy, in accordance with Article 18(4) of that Regulation. 6. Without prejudice to the winding up of the Joint Undertaking, as referred to in Article 23(4) of the Statutes, the part of the ownership of the supercomputer owned by the Joint Undertaking shall be transferred to the hosting entity after the full depreciation of the supercomputer. The hosting entity shall reimburse the Joint Undertaking the residual value of the supercomputer that is transferred. The Joint Undertaking shall not be liable for any costs incurred after the transfer of ownership of the mid-range supercomputer.
Article 15 Upgrading of supercomputers
1. The Joint Undertaking may launch a call for expressions of interest to upgrade the EuroHPC supercomputers it owns or co-owns. The maximum EU contribution to such upgrades may not exceed EUR 150 million for the period 2021-2027. 2. A hosting entity shall be eligible to respond to this call for expressions of interest at the earliest one year after the selection date of the hosting entity of the EuroHPC supercomputer, and no later than three years after this date. A EuroHPC supercomputer may be upgraded only once. 4. The Joint Undertaking shall acquire, jointly with the contracting authorities of the Participating State where the selected hosting entity is established or with the contracting authorities of the Participating States in the selected hosting consortium, the upgrade of the supercomputer and shall own it under the same conditions of ownership of the original EuroHPC supercomputer. 5. The Union financial contribution for the upgrade shall cover up to 35 % of the acquisition costs of the upgrade, depreciated over the expected remaining lifetime of the original supercomputer and up to 35 % of the additional operating costs. The total cost of the upgrade shall not exceed 30 % of the total acquisition cost of the original EuroHPC supercomputer. 6. The share of the Union’s access time to the upgraded EuroHPC supercomputer shall remain unchanged over the lifetime of the machine. If the upgrade entails an increase of capacity, the additional access time shall be directly proportional to the Union contribution.
Amendment rationale: CONTEXT OF THE PROPOSAL Reasons for and objectives of the proposal Council Regulation (EU) 2021/117 3 , 1 repealing Council Regulation (EU) 2018/1488, 2 establishes th e European High Performance Computing Joint Undertaking and sets out its mission and objectives. The Joint Undertaking ’s mission is to develop, deploy, extend and maintain in the Union a world-leading federated, secure and hyper-connected supercomputing, quantum computing, service and data infrastructure ecosystem; to support the development and uptake of demand-oriented and user-driven innovative and competitive supercomputing systems based on a supply chain that will ensure the availability of components, technologies and knowledge , limit the risk of disruption , and enable the development of a wide range of applications optimised for these systems; and to widen the use of this supercomputing infrastructure to a large number of public and private users a s well as support ing the twin digital and green transition s and the development of key skills for European science and industry. In her 2023 State of the Union Address, 3 President Ursula von der Leyen announced a new initiative to make the Union ’s supercomputing capacity available to innovative European startups in trustworthy artificial intelligence ( AI ) to train their models. These models require substantial amounts of computing power to train and finetune the most advanced foundation models in order to unlock the full potential of AI, a requirement that can be met only with supercomputing . Given that the Union’s most powerful world-class supercomputing capacity is found in the European High Performance Computing (EuroHPC) Joint Undertaking’s (the “Joint Undertaking”) facilities, it is these facilities that will need to be made available in order for this initiative to become a reality. It is accordingly proposed to introduce a further objective for the Joint Undertaking, which will cover the contribution made by supercomputers to this new AI initiative of the Union. This new objective will allow the Joint Undertaking to support the further development of a highly competitive and innovative AI startup and research ecosystem in Europe, including the development and uptake of European AI solution, by operating AI Factories. It will consist of deploying and operating AI dedicated supercomputers co-located with large data centres or connected to data centres via very high speed networks, enhancing the performance of these supercomputers by regularly upgrading their AI capabilities; and, providing dedicated AI oriented supercomputing services in support of the AI startup, science and innovation ecosystem for the large scale training and development of general purpose, trustworthy and ethical AI models and systems, and of AI user communities for the development, validation and running of emerging AI applications, in particular in the areas of health and care, climate change, robotics, and connected and automated driving. It will also foster a talent development pool to provide advanced education, training, skilling and reskilling activities to relevant AI stakeholders. The AI Factories will establish synergies at EU level and will cooperate with and federate other relevant Union AI initiatives, such as the Artificial Intelligence On-Demand platform, the AI Testing and Experimentation Facilities, the EuroHPC Competence Centres, the EuroHPC Centres of Excellence, and any other emerging European AI initiative. These changes will enable the Joint Undertaking to offer tailored computing power and services to nurture large-scale AI training and development and uptake in the Union, which the current Regulation does not specifically foresee. 
Revised version (Article 15 Upgrading of supercomputers):
1. The Joint Undertaking may launch a call for expressions of interest to upgrade the EuroHPC supercomputers that it owns or co-owns, to raise the performance level of the supercomputer close to exascale, to increase the AI capabilities of the supercomputer, or to increase the operational performance of the supercomputer in any other way, including by means of quantum accelerators. 4. The Joint Undertaking shall acquire, jointly with the contracting authorities of the Participating State where the selected hosting entity is established or with the contracting authorities of the Participating States in the selected hosting consortium, the upgrade of the supercomputer and shall own it under the same conditions of ownership of the original EuroHPC supercomputer. 5. The percentage of the Union’s financial contribution for the acquisition costs of the upgrade shall be the same as the percentage of the Union’s financial contribution for the original EuroHPC supercomputer, depreciated over the expected remaining lifetime of the original supercomputer. The percentage of the Union’s financial contribution for the additional operational costs of the upgrade shall be the same as the percentage of the Union’s financial contribution for the original EuroHPC supercomputer. For the petascale supercomputers acquired during the time of application of Regulation (EU) 2018/1488 the Union financial contribution for the upgrade shall cover up to 35 % of the additional operating costs. 6. The share of the Union’s access time to the upgraded EuroHPC supercomputer shall remain unchanged over the lifetime of the machine. If the upgrade entails an increase of capacity, the additional access time shall be directly proportional to the Union contribution.
Article 16 Use of EuroHPC supercomputers
1. Without prejudice to Article 17(9), the use of EuroHPC supercomputers shall be open to users from the public and private sectors and shall focus on civilian applications. Except for the industrial-grade EuroHPC supercomputers, their use shall be primarily for research and innovation purposes falling under public funding programmes, for public sector applications and for private innovation activities of SMEs, where appropriate. 2. The Governing Board shall define the general access conditions for using the EuroHPC supercomputers in accordance with Article 17 and may define specific access conditions for different types of users or applications. The security and quality of service shall be the same for all users within each user category, except for the industrial-grade EuroHPC supercomputers, whose security and quality of service shall be compliant with industrial requirements, in accordance with Article 13(1). 3. Users residing, established or located in a Member State or in a third country associated to Horizon 2020 shall be granted access to the Union’s share of access time of the supercomputers acquired by the EuroHPC Joint Undertaking established by Regulation (EU) 2018/1488. 4. Users residing, established or located in a Member State or in a third country associated to the Digital Europe Programme or to Horizon Europe shall be granted the Union’s share of access time to EuroHPC supercomputers acquired after 2020. 5. In duly justified cases, taking into account the interests of the Union, the Governing Board shall decide to grant access time to EuroHPC supercomputers to entities residing, established or located in any third country and to international organisations.
Amendment rationale: CONTEXT OF THE PROPOSAL Reasons for and objectives of the proposal Council Regulation (EU) 2021/117 3 , 1 repealing Council Regulation (EU) 2018/1488, 2 establishes th e European High Performance Computing Joint Undertaking and sets out its mission and objectives. The Joint Undertaking ’s mission is to develop, deploy, extend and maintain in the Union a world-leading federated, secure and hyper-connected supercomputing, quantum computing, service and data infrastructure ecosystem; to support the development and uptake of demand-oriented and user-driven innovative and competitive supercomputing systems based on a supply chain that will ensure the availability of components, technologies and knowledge , limit the risk of disruption , and enable the development of a wide range of applications optimised for these systems; and to widen the use of this supercomputing infrastructure to a large number of public and private users a s well as support ing the twin digital and green transition s and the development of key skills for European science and industry. In her 2023 State of the Union Address, 3 President Ursula von der Leyen announced a new initiative to make the Union ’s supercomputing capacity available to innovative European startups in trustworthy artificial intelligence ( AI ) to train their models. These models require substantial amounts of computing power to train and finetune the most advanced foundation models in order to unlock the full potential of AI, a requirement that can be met only with supercomputing . Given that the Union’s most powerful world-class supercomputing capacity is found in the European High Performance Computing (EuroHPC) Joint Undertaking’s (the “Joint Undertaking”) facilities, it is these facilities that will need to be made available in order for this initiative to become a reality. It is accordingly proposed to introduce a further objective for the Joint Undertaking, which will cover the contribution made by supercomputers to this new AI initiative of the Union. This new objective will allow the Joint Undertaking to support the further development of a highly competitive and innovative AI startup and research ecosystem in Europe, including the development and uptake of European AI solution, by operating AI Factories. It will consist of deploying and operating AI dedicated supercomputers co-located with large data centres or connected to data centres via very high speed networks, enhancing the performance of these supercomputers by regularly upgrading their AI capabilities; and, providing dedicated AI oriented supercomputing services in support of the AI startup, science and innovation ecosystem for the large scale training and development of general purpose, trustworthy and ethical AI models and systems, and of AI user communities for the development, validation and running of emerging AI applications, in particular in the areas of health and care, climate change, robotics, and connected and automated driving. It will also foster a talent development pool to provide advanced education, training, skilling and reskilling activities to relevant AI stakeholders. The AI Factories will establish synergies at EU level and will cooperate with and federate other relevant Union AI initiatives, such as the Artificial Intelligence On-Demand platform, the AI Testing and Experimentation Facilities, the EuroHPC Competence Centres, the EuroHPC Centres of Excellence, and any other emerging European AI initiative. These changes will enable the Joint Undertaking to offer tailored computing power and services to nurture large-scale AI training and development and uptake in the Union, which the current Regulation does not specifically foresee. 
Revised version (Article 16 Use of EuroHPC supercomputers):
1. Without prejudice to Article 17(9), the use of EuroHPC supercomputers shall be open to users from the public and private sectors and shall focus on civilian applications. Except for the industrial-grade EuroHPC supercomputers, their use shall be primarily for research and innovation purposes falling under public funding programmes, for public sector applications and for private innovation activities of SMEs, where appropriate. 1a. The AI-optimised supercomputers and EuroHPC supercomputers upgraded for AI capabilities shall be used primarily for the development, testing, evaluation and validation of large scale, general purpose AI training models and emerging AI applications, as well as for the further development of AI solutions in the Union requiring High Performance Computing and the execution of large-scale AI algorithms for the resolution of science problems. 2. The Governing Board shall define the general access conditions for using the EuroHPC supercomputers in accordance with Article 17 and may define specific access conditions for different types of users or applications. The security and quality of service shall be the same for all users within each user category, except for the industrial-grade EuroHPC supercomputers, whose security and quality of service shall be compliant with industrial requirements, in accordance with Article 13(1). 2a. The Governing Board shall define special access conditions for the AI-optimised supercomputers and the EuroHPC supercomputers upgraded for AI capabilities in accordance with Article 17, taking into account the specific needs of the AI startup ecosystem and the research and innovation ecosystem. Those shall include dedicated access to startups and small and medium-sized enterprises. Only proposals for developing trustworthy and ethical AI models, systems and applications, that are in line with Union values, shall be eligible for access. 3. Users residing, established or located in a Member State or in a third country associated to Horizon 2020 shall be granted access to the Union’s share of access time of the supercomputers acquired by the EuroHPC Joint Undertaking established by Regulation (EU) 2018/1488. 4. Users residing, established or located in a Member State or in a third country associated to the Digital Europe Programme or to Horizon Europe shall be granted the Union’s share of access time to EuroHPC supercomputers acquired after 2020. 5. In duly justified cases, taking into account the interests of the Union, the Governing Board shall decide to grant access time to EuroHPC supercomputers to entities residing, established or located in any third country and to international organisations.
Article 17 Allocation of Union’s access time to the EuroHPC supercomputers
1. The share of the Union’s access time to each high-end and quantum EuroHPC supercomputer shall be directly proportional to the financial contribution of the Union referred to in Article 5(1) to the total cost of ownership of the EuroHPC supercomputer and shall thus not exceed 50 % of the total access time of the EuroHPC supercomputer. 2. The share of the Union’s access time to each mid-range EuroHPC supercomputer shall be directly proportional to the financial contribution of the Union, referred to in Article 5(1), to the acquisition and operating cost of the supercomputer and shall not exceed 35 % of the total access time of the supercomputer. 3. The share of the Union’s access time to each industrial-grade EuroHPC supercomputer shall be directly proportional to the financial contribution of the Union, referred to in Article 5(1), to the acquisition cost of the supercomputer and shall not exceed 35 % of the total access time of the supercomputer. 4. Each Participating State where a hosting entity is established or each Participating State in a hosting consortium shall be allocated the remaining access time to each EuroHPC supercomputer. In the case of a hosting consortium, the Participating States shall agree among themselves the distribution of access time to the supercomputer. 5. The Governing Board shall define the access rights to the Union’s share of access time to the EuroHPC supercomputers. 6. Use of the Union’s share of access time to the EuroHPC supercomputers shall be free of charge for the users from the public sector referred to in Article 16(4). It shall also be free of charge for industrial users for applications related to research and innovation activities funded by Horizon Europe or the Digital Europe Programme as well as those awarded a Seal of Excellence under Horizon Europe or the Digital Europe Programme and for private innovation activities of SMEs, where appropriate. As a guiding principle, allocation of access time for such activities shall be based on a fair and transparent peer review process defined by the Governing Board following continuously open calls for expression of interest launched by the Joint Undertaking. 7. With the exception of SME users undertaking private innovation activities, other users shall adopt an open science approach to disseminating knowledge gained through access to the supercomputers of the Joint Undertaking, in accordance with Article 14 of Regulation (EU) 2021/695. The Governing Board shall define further the applicable open science rules. 8. The Governing Board shall define specific rules for access conditions that depart from the guiding principles referred to in paragraph 6. These concern the allocation of access time for projects and activities considered as strategic for the Union. 9. Upon request of the Union, the Executive Director shall grant direct access to the EuroHPC supercomputers to initiatives that the Union considers essential for providing health- or climate-related or other crucial emergency support services for the public good, to emergency and crisis management situations or to cases that the Union considers essential for its security and defence. The modalities and conditions for the implementation of such access shall be defined in the access conditions adopted by the Governing Board. 10. The Governing Board shall define the conditions that apply for industrial use to provide access to the Union’s share of access time to secure High Performance Computing and data resources for applications other than those specified in paragraph 6. 11. The Governing Board shall regularly monitor the Union’s share of access time granted per Participating State and per user category, including for commercial purposes. It may decide among others to: (a) re-adapt access times per category of activity or user, with the aim to optimise the use capabilities of the EuroHPC supercomputers; (b) propose additional support measures for providing fair access opportunities to users that would aim to raise their level of skills and expertise in High Performance Computing systems.
Article 18 Union’s access time to EuroHPC supercomputers for commercial purposes
1. Specific conditions shall apply to all industry users for commercial purposes on the Union’s share of access time. This service for commercial use shall be a pay-per-use service, based on market prices. The level of the fee shall be established by the Governing Board. 2. The fees generated by the commercial use of the Union’s share of access time shall constitute revenue to the Joint Undertaking budget and shall be used to cover operational costs of the Joint Undertaking. 3. The access time allocated to commercial services shall not exceed 20 % of the Union’s total access time of each EuroHPC supercomputer. The Governing Board shall decide on the allocation of the Union’s access time for the users of commercial services, taking into account the outcome of the monitoring referred to in Article 17(11). 4. The quality of commercial services shall be the same for all users.
Article 19 Financial rules
1. The Joint Undertaking shall adopt its specific financial rules in accordance with Article 71 of Regulation (EU, Euratom) 2018/1046. 2. The financial rules shall be published on the website of the Joint Undertaking.
Article 20 Staff
1. The Staff Regulations of Officials of the European Union (‘Staff Regulations’) and the Conditions of Employment of Other Servants of the European Union (‘Conditions of Employment’), laid down in Council Regulation (EEC, Euratom, ECSC) No 259/68 ( 2 ), and the rules adopted jointly by the institutions of the Union for the purpose of applying the Staff Regulations and Conditions of Employment shall apply to the staff of the Joint Undertaking. 2. The Governing Board shall exercise, with respect to the staff of the Joint Undertaking, the powers conferred by the Staff Regulations on the Appointing Authority and by the Conditions of Employment on the Authority empowered to conclude contracts (‘the appointing authority powers’). 3. The Governing Board shall adopt, in accordance with Article 110 of the Staff Regulations, a decision based on Article 2(1) of the Staff Regulations and on Article 6 of the Conditions of Employment delegating the relevant appointing authority powers to the Executive Director and defining the conditions under which that delegation may be suspended. The Executive Director shall be authorised to sub-delegate those powers. 4. Where exceptional circumstances so require, the Governing Board may decide to temporarily suspend the delegation of the appointing authority powers to the Executive Director and any subsequent sub-delegation of those powers by the latter. In such cases, the Governing Board shall exercise the appointing authority powers itself or shall delegate them to one of its members or to a staff member of the Joint Undertaking other than the Executive Director. 5. The Governing Board shall adopt appropriate implementing rules giving effect to the Staff Regulations and the Conditions of Employment in accordance with Article 110 of the Staff Regulations. 6. The staff resources shall be set out in the staff establishment plan of the Joint Undertaking, indicating the number of temporary posts by function group and by grade, as well as by the number of contract staff expressed in full-time equivalents, in accordance with its annual budget. 7. The staff of the Joint Undertaking shall consist of temporary staff and contract staff. 8. All costs related to staff shall be borne by the Joint Undertaking.
Article 21 Seconded national experts and trainees
1. The Joint Undertaking may make use of seconded national experts and trainees not employed by the Joint Undertaking. The number of seconded national experts expressed in full-time equivalents shall be added to the information on staff resources as referred to in Article 20(6) in accordance with the annual budget. 2. The Governing Board shall adopt a decision laying down rules on the secondment of national experts to the Joint Undertaking and on the use of trainees.
Article 22 Privileges and Immunities
Protocol No 7 on the privileges and immunities of the European Union, annexed to the TEU and the TFEU, shall apply to the Joint Undertaking and its staff.
Article 23 Liability of the Joint Undertaking
1. The contractual liability of the Joint Undertaking shall be governed by the relevant contractual provisions and by the law applicable to the agreement, decision or contract in question. 2. In the case of non-contractual liability, the Joint Undertaking shall, in accordance with the general principles common to the laws of the Member States, make good any damage caused by its staff in the performance of their duties. 3. Any payment by the Joint Undertaking in respect of the liability referred to in paragraphs 1 and 2, and the costs and expenses incurred in that respect, shall be considered as expenditure of the Joint Undertaking and shall be covered by its resources. 4. The Joint Undertaking shall be solely responsible for meeting its obligations. 5. The Joint Undertaking shall not be held liable for any damage resulting from the actions of the hosting entity regarding the operation by the hosting entity of the supercomputers owned by the EuroHPC Joint Undertaking.
Article 24 Monitoring and evaluation
1. The activities of the Joint Undertaking shall be subject to continuous monitoring and periodic reviews in accordance with its financial rules, to ensure the highest impact and excellence, as well as the most effective and efficient use of resources. The outcomes of monitoring and periodic reviews shall feed into the monitoring of European Partnerships and evaluations of the Joint Undertaking as part of the Horizon Europe evaluations referred to in Articles 50 and 52 of Regulation (EU) 2021/695. 2. The Joint Undertaking shall organise the continuous monitoring of its management and implementation activities and periodic reviews of the outputs, results and impacts of the projects implemented in line with Article 50 of, and Annex III to, Regulation (EU) 2021/695. 3. Evaluations of the Joint Undertakings’ operations shall be carried out in a timely manner to feed into the interim evaluation and final evaluation of Horizon Europe and the related decision-making process as specified in Article 52 of Regulation (EU) 2021/695. 4. The Commission shall carry out an interim and a final evaluation of the Joint Undertaking as part of the Horizon Europe evaluations referred to in Article 52 of Regulation (EU) 2021/695. The interim evaluation shall be performed with the assistance of independent experts on the basis of a transparent process once there is sufficient information available about the implementation of Horizon Europe, but no later than four years after the start of the implementation of Horizon Europe. The evaluations shall examine how the Joint Undertaking fulfils its mission in accordance with its economic, technological, scientific, societal and policy objectives, including climate-related objectives, and evaluate the effectiveness, efficiency, relevance, coherence, and Union added value of its activities as part of Horizon Europe, its synergies and complementarities with relevant European, national and, where relevant, regional initiatives, including synergies with other parts of Horizon Europe, such as missions, clusters or thematic or specific programmes. The evaluations shall take into account the views of stakeholders, at both European and national levels, and shall, where relevant, also include an assessment of the long-term scientific, societal, economic and policy-relevant impact of the Joint Undertaking. They shall also include an assessment of the most effective policy intervention mode for any future action, as well as the relevance and coherence of any possible renewal of the Joint Undertaking in the overall European Partnerships landscape and its policy priorities. 5. On the basis of the conclusions of the interim evaluation referred to in paragraph 4 of this Article, the Commission may act in accordance with Article 7(7) or take any other appropriate action. 6. The Commission may carry out further evaluations of themes or topics of strategic relevance, with the assistance of external independent experts selected on the basis of a transparent process, to examine the progress made by the Joint Undertaking towards the objectives set, identify the factors contributing to the implementation of the activities and identify best practices. By carrying out those further evaluations, the Commission shall fully consider the administrative impact on the Joint Undertaking. 7. The Joint Undertaking shall perform periodic reviews of its activities to inform the interim evaluation and final evaluation of the Joint Undertaking as part of Horizon Europe evaluations referred to in Article 52 of Regulation (EU) 2021/695. 8. Periodic reviews and evaluations shall inform the winding up or possible renewal of the Joint Undertaking, in line with Annex III to Regulation (EU) 2021/695. Within six months after the winding-up of the Joint Undertaking, but no later than two years after the triggering of the winding-up procedure referred to in Article 23 of the Statutes, the Commission shall conduct a final evaluation of the Joint Undertaking. The results of that final evaluation shall be presented to the European Parliament and to the Council. 9. The Commission shall publish and communicate the results of the evaluations of the Joint Undertaking, which shall include conclusions of the evaluation and observations by the Commission, to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions as part of the Horizon Europe evaluations referred to in Article 52 of Regulation (EU) 2021/695.
Article 25 Jurisdiction of the Court of Justice of the European Union and applicable law
2. With regard to any matter not covered by this Regulation or by other Union legal acts, the law of the Member State where the seat of the Joint Undertaking is located shall apply.
Article 26 Complaints to the Ombudsman
Decisions taken by the Joint Undertaking in implementing this Regulation may form the subject of a complaint to the Ombudsman in accordance with Article 228 TFEU.
Article 27 Ex post audits
1. Ex post audits of expenditure on actions funded by the Horizon Europe budget shall be carried out in accordance with Article 53 of Regulation (EU) 2021/695 as part of the Horizon Europe indirect actions, in particular in line with the audit strategy referred to in Article 53(2) of that Regulation. 2. Ex post audits of expenditure on activities funded by the Digital Europe Programme budget shall be carried out by the Joint Undertaking in accordance with Article 27 of Regulation (EU) 2021/694. 3. Ex post audits of expenditure on activities funded by the Connecting Europe Facility budget shall be carried out by the Joint Undertaking in accordance with Article 26 of Regulation (EU) 2021/1153 as part of the Connecting Europe Facility actions.
Article 28 Protection of the financial interests of the members
1. The Joint Undertaking shall grant Commission staff and other persons authorised by the respective Joint Undertaking or the Commission, as well as the Court of Auditors or, for the purpose of the audit referred to in Article 8(3), the audit authorities of the Participating States, access to its sites and premises and to all the information, including information in electronic format, needed in order to conduct their audits. 2. OLAF and EPPO may carry out investigations, including on-the-spot checks and inspections, in accordance with the provisions and procedures laid down in Council Regulation (Euratom, EC) No 2185/96 ( 3 ) and Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council ( 4 ) and 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 an agreement, a decision or a contract funded under this Regulation. 3. Without prejudice to paragraphs 1 and 2 of this Article, agreements, decisions and contracts resulting from the implementation of this Regulation shall contain provisions expressly empowering the Commission, the respective Joint Undertaking, the Court of Auditors, EPPO and OLAF, and, for the purpose of the audit referred to in Article 8(3), the audit authorities of the Participating States, to conduct such audits, on-the spot checks and investigations in accordance with their respective competences. 4. The Joint Undertaking shall ensure that the financial interests of its members are adequately protected by carrying out or commissioning appropriate internal and external controls. 5. The Joint Undertaking shall accede to the Interinstitutional Agreement of 25 May 1999 between the European Parliament, the Council of the European Union and the Commission of the European Communities concerning internal investigations by the European Anti-fraud Office (OLAF) ( 5 ). The Joint Undertaking shall adopt the necessary measures needed to facilitate internal investigations conducted by OLAF.
Article 29 Confidentiality
The Joint Undertaking shall ensure the protection of sensitive information the disclosure of which could damage the interests of its members or of participants in the activities of the Joint Undertaking.
Article 30 Transparency
Regulation (EC) No 1049/2001 of the European Parliament and of the Council ( 6 ) shall apply to documents held by the Joint Undertaking.
Article 31 Processing of personal data
Where the implementation of this Regulation requires the processing of personal data, they shall be processed in accordance with Regulation (EU) 2018/1725 of the European Parliament and of the Council ( 7 ).
Article 32 Access to results and information on proposals
1. The Joint Undertaking shall provide the Union institutions, bodies, offices or agencies, as well as the authorities of Participating States, access to all information related to the indirect actions it funds. Such information shall include results of beneficiaries participating in indirect actions of the Joint Undertaking or any other information deemed necessary for developing, implementing, monitoring and evaluating Union policies or programmes. Such access rights are limited to non-commercial and non-competitive use and shall comply with applicable confidentiality rules. 2. For the purposes of developing, implementing, monitoring and evaluating Union policies or programmes, the Joint Undertaking shall provide the Commission with information included in submitted proposals. This shall apply mutatis mutandis to Participating States regarding proposals which include applicants established in their territories, limited to non-commercial and non-competitive use and in accordance with applicable confidentiality rules.
Article 33 Rules for participation and dissemination applicable to indirect actions funded under Horizon Europe
1. Regulation (EU) 2021/695 shall apply to the indirect actions funded by the Joint Undertaking under Horizon Europe. In accordance with that Regulation, the Joint Undertaking shall be considered as a funding body and shall provide financial support to indirect actions as set out in Article 1 of the Statutes. 2. Regulation (EU) 2021/695 shall also apply to the indirect actions funded by the Participating State contributions referred to in Article 15(3)(f) of the Statutes.
Article 34 Reimbursement rates
For indirect actions funded under Horizon Europe, by way of derogation from Article 34 of Regulation (EU) 2021/695, and for activities funded under the Digital Europe Programme, the Joint Undertaking may apply different reimbursement rates for Union funding within an action depending on the type of participant, namely SMEs, and the type of action. The reimbursement rates shall be indicated in the work programme.
Article 35 Rules applicable to the activities funded under the Connecting Europe Facility
Regulation (EU) 2021/1153 shall apply to the activities funded by the Joint Undertaking under the Connecting Europe Facility.
Article 36 Rules applicable to the activities funded under the Digital Europe Programme
Regulation (EU) 2021/694 shall apply to the activities funded by the Joint Undertaking under the Digital Europe Programme.
Article 37 Support from the host Member State
An administrative agreement may be concluded between the Joint Undertaking and the Member State where its seat is located concerning privileges and immunities and other support to be provided by that State to the Joint Undertaking.
Article 38 Repeal
1. Without prejudice to actions initiated under Regulation (EU) 2018/1488, including annual implementation plans and financial obligations related to those actions, Regulation (EU) 2018/1488 is repealed. As regards the actions initiated under Articles 10, 11, 13 and 14 of Regulation (EU) 2018/1488, as well as Articles 6 and 7 of the Statutes annexed to that Regulation, it shall continue to apply until their completion and to the extent necessary. Actions arising from calls for proposals and calls for tenders provided for in annual implementation plans adopted under Regulation (EU) 2018/1488 shall also be regarded as actions initiated under that Regulation. 2. References to Regulation (EU) 2018/1488 shall be construed as references to this Regulation.
Article 39 Transitional provisions
1. This Regulation shall not affect the rights and obligations of staff engaged under Regulation (EU) 2018/1488. To that effect, the employment contracts of staff shall continue under this Regulation in accordance with the Staff Regulations and Conditions of Employment. 2. The Executive Director appointed under Regulation (EU) 2018/1488 shall, for the remaining period of the term of office, be assigned to the functions of the Executive Director provided for in this Regulation with effect from the entry into force of this Regulation. The other conditions of contract shall remain unchanged. 3. Unless otherwise agreed between members, all rights and obligations, including assets, debts or liabilities of the members held pursuant to Regulation (EU) 2018/1488, shall be transferred to the members pursuant to this Regulation. 4. At its first meeting after the entry into force of this Regulation, the Governing Board shall adopt a list of decisions adopted under Regulation (EU) 2018/1488 that shall continue to apply under this Regulation. Any unused appropriations under Regulation (EU) 2018/1488 shall be transferred to the Joint Undertaking established under this Regulation. 5. All rights and obligations including assets, debts or liabilities of the Joint Undertaking and any unused appropriations under Regulation (EU) 2018/1488 shall be transferred to the Joint Undertaking established under this Regulation.
Article 40 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 .