United in diversity

TEXTS ADOPTEDPART VIat the sitting of

Tuesday15 April 2014

P7_TA-PROV(2014)04-15 PROVISIONAL EDITION PE 531.385

EN EN

EUROPEAN PARLIAMENT 2014 - 2015

CONTENTS

TEXTS ADOPTED

P7_TA-PROV(2014)0369Conditions of entry and residence of third-country nationals in the framework of an intra-corporate transfer ***I(A7-0170/2014 - Rapporteur: Salvatore Iacolino)European Parliament legislative resolution of 15 April 2014 on the proposal for a directive of the European Parliament and of the Council on conditions of entry and residence of third-country nationals in the framework of an intra-corporate transfer (COM(2010)0378 – C7-0179/2010 – 2010/0209(COD))....................................................1

P7_TA-PROV(2014)0370Clean Sky 2 Joint Undertaking *(A7-0083/2014 - Rapporteur: Christian Ehler)European Parliament legislative resolution of 15 April 2014 on the proposal for a Council regulation on the Clean Sky 2 Joint Undertaking (COM(2013)0505 – C7-0255/2013 – 2013/0244(NLE))...............................................................................................................91

P7_TA-PROV(2014)0371Bio-Based Industries Joint Undertaking *(A7-0092/2014 - Rapporteur: Lambert van Nistelrooij)European Parliament legislative resolution of 15 April 2014 on the proposal for a Council regulation on the Bio-Based Industries Joint Undertaking (COM(2013)0496 – C7-0257/2013 – 2013/0241(NLE))........................................................................................149

P7_TA-PROV(2014)0372SESAR Joint Undertaking *(A7-0062/2014 - Rapporteur: Britta Thomsen)European Parliament legislative resolution of 15 April 2014 on the proposal for a Council regulation amending Regulation (EC) No 219/2007 on establishment of a Joint Undertaking to develop the new generation European air traffic management system (SESAR) as regards the extension of the Joint Undertaking until 2024 (COM(2013)0503 – C7-0254/2013 – 2013/0237(NLE))...............................................................................193

P7_TA-PROV(2014)0373Innovative Medicines Initiative 2 Joint Undertaking *(A7-0105/2014 - Rapporteur: Teresa Riera Madurell)European Parliament legislative resolution of 15 April 2014 on the proposal for a Council regulation on the Innovative Medicines Initiative 2 Joint Undertaking (COM(2013)0495 – C7-0259/2013 – 2013/0240(NLE))..................................................................................215

PE 531.385\ I

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P7_TA-PROV(2014)0374ECSEL Joint Undertaking *(A7-0074/2014 - Rapporteur: Paul Rübig)European Parliament legislative resolution of 15 April 2014 on the proposal for a Council regulation on the ECSEL Joint Undertaking (COM(2013)0501 – C7-0258/2013 – 2013/0234(NLE)).............................................................................................................259

P7_TA-PROV(2014)0375Fuel Cells and Hydrogen 2 Joint Undertaking *(A7-0094/2014 - Rapporteur: Vladko Todorov Panayotov)European Parliament legislative resolution of 15 April 2014 on the proposal for a Council regulation on the Fuel Cells and Hydrogen 2 Joint Undertaking (COM(2013)0506 – C7-0256/2013 – 2013/0245(NLE))........................................................................................318

P7_TA-PROV(2014)0376Interinstitutional agreement on the transparency register(A7-0258/2014 - Rapporteur: Roberto Gualtieri)European Parliament decision of 15 April 2014 on the modification of the interinstitutional agreement on the Transparency Register (2014/2010(ACI))................364

P7_TA-PROV(2014)0377Tripartite social summit for growth and employment(A7-0136/2014 - Rapporteur: Csaba Őry)European Parliament resolution of 15 April 2014 on the proposal for a Council decision on a Tripartite Social Summit for Growth and Employment (COM(2013)0740 – 2013/0361(APP))..............................................................................................................390

P7_TA-PROV(2014)0378MFF negotiations 2014-2020: lessons to be learned and the way forward(A7-0254/2014 - Rapporteurs: Jean-Luc Dehaene, Ivailo Kalfin)European Parliament resolution of 15 April 2014 on negotiations on the MFF 2014-2020: lessons to be learned and the way forward (2014/2005(INI))..........................................395

II /PE 531.385

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P7_TA-PROV(2014)0369

Conditions of entry and residence of third-country nationals in the framework of an intra-corporate transfer ***I

European Parliament legislative resolution of 15 April 2014 on the proposal for a directive of the European Parliament and of the Council on conditions of entry and residence of third-country nationals in the framework of an intra-corporate transfer (COM(2010)0378 – C7-0179/2010 – 2010/0209(COD))

(Ordinary legislative procedure: first reading)

The European Parliament,

– having regard to the Commission proposal to Parliament and the Council (COM(2010)0378),

– having regard to Article 294(2) and points (a) and (b) of Article 79(2) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C7-0179/2010),

– having regard to the opinion of the Committee on Legal Affairs on the proposed legal basis,

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

– having regard to the opinion of the European Economic and Social Committee of 4 May 20111,

– having regard to the opinion of the Committee of the Regions of 31 March 20112,

– having regard to the undertaking given by the Council representative by letter of 27 February 2014 to approve Parliament's position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

– having regard to Rules 55 and 37 of its Rules of Procedure,

– having regard to the report of the Committee on Civil Liberties, Justice and Home Affairs and the opinion of the Committee on Employment and Social Affairs (A7-0170/2014),

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

2. Approves the joint statement by Parliament, the Council and the Commission annexed to this resolution;

3. Takes note of the Commission statements annexed to this resolution;

1 OJ C 218, 23.7.2011, p. 101.2 OJ C 166, 7.6.2011, p. 59.

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4. Calls on the Commission to refer the matter to Parliament again if it intends to amend its proposal substantially or replace it with another text;

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

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P7_TC1-COD(2010)0209

Position of the European Parliament adopted at first reading on 15 April 2014 with a view to the adoption of Directive 2014/…/EU of the European Parliament and of the Council on the conditions of entry and residence of third-country nationals in the framework of an intra-corporate transfer

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

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

(a) and (b) of Article 79(2) thereof,

Having regard to the proposal from the European Commission,

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

Having regard to the opinion of the European Economic and Social Committee1,

Having regard to the opinion of the Committee of the Regions2,

Acting in accordance with the ordinary legislative procedure3,

1 OJ C 218, 23.7.2011, p. 101.2 OJ C 166, 7.6.2011, p. 59.3 Position of the European Parliament of 15 April 2014.

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Whereas:

(1) For the gradual establishment of an area of freedom, security and justice, the Treaty on

the Functioning of the European Union (TFEU) provides for measures to be adopted in

the field of immigration which are fair towards third-country nationals.

(2) The TFEU provides that the Union is to develop a common immigration policy aimed

at ensuring, at all stages, the efficient management of migration flows and fair

treatment of third-country nationals residing legally in Member States. To that end, the

European Parliament and the Council are to adopt measures on the conditions of entry

and residence, and standards on the issue by Member States of long-term visas and

residence permits, as well as the definition of the rights of third-country nationals

residing legally in a Member State, including the conditions governing freedom of

movement and of residence in other Member States.

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(3) The Commission's Communication of 3 March 2010 entitled "Europe 2020: A strategy

for smart, sustainable and inclusive growth" sets the objective of the Union becoming

an economy based on knowledge and innovation, reducing the administrative burden

on companies and better matching labour supply with demand. Measures to make it

easier for third-country managers, specialists and trainee employees to enter the Union

in the framework of an intra-corporate transfer have to be seen in that broader context.

(4) The Stockholm Programme, adopted by the European Council on 11 December 2009,

recognises that labour immigration can contribute to increased competitiveness and

economic vitality and that, in the context of the important demographic challenges that

will face the Union in the future and, consequently, an increased demand for labour,

flexible immigration policies will make an important contribution to the Union’s

economic development and performance in the longer term. The Stockholm

Programme thus invites the Commission and the Council to continue implementing the

Policy Plan on Legal Migration set out in the Commission's Communication of 21

December 2005.

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(5) As a result of the globalisation of business, increasing trade and the growth and spread

of multinational groups, in recent years movements of managers, specialists and

trainee employees of branches and subsidiaries of multinationals, temporarily

relocated for short assignments to other units of the company, have gained momentum.

(6) Such intra-corporate transfers of key personnel result in new skills and knowledge,

innovation and enhanced economic opportunities for the host entities, thus advancing

the knowledge-based economy in the Union while fostering investment flows across

the Union. Intra-corporate transfers from third countries also have the potential to

facilitate intra-corporate transfers from the Union to third-country companies and to

put the Union in a stronger position in its relationship with international partners.

Facilitation of intra-corporate transfers enables multinational groups to tap their human

resources best.

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(7) The set of rules established by this Directive may also benefit the migrants' countries

of origin as this temporary migration may, under its well-established rules, foster

transfers of skills, knowledge, technology and know-how.

(8) This Directive should be without prejudice to the principle of ▌ preference for Union

citizens as regards access to Member States’ labour market as expressed in the relevant

provisions of the relevant Acts of Accession. ▌

(9) This Directive should be without prejudice to the right of Member States to issue

permits other than intra-corporate transferee permits for any purpose of employment

if a third-country national does not fall within the scope of this Directive.

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(10) This Directive should establish a transparent and simplified procedure for admission of

intra-corporate transferees, based on common definitions and harmonised criteria.

(11) Member States should ensure that appropriate checks and effective inspections are

carried out in order to guarantee the proper enforcement of this Directive. The fact

that an intra-corporate transferee permit has been issued should not affect or

prevent the Member States from applying, during the intra-corporate transfer, their

labour law provisions having - in accordance with Union law - as their objective

checking compliance with the working conditions as set out in Article 18(1).

(12) The possibility for a Member State to impose, on the basis of national law, sanctions

against an intra-corporate transferee's employer established in a third country

should remain unaffected.

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(13) For the purpose of this Directive, intra-corporate transferees should encompass

managers, specialists and trainee employees. Their definition should build on specific

commitments of the Union under the General Agreement on Trade in Services▌

(GATS) and bilateral trade agreements. Since those commitments undertaken under

GATS do not cover conditions of entry, stay and work, this Directive should

complement and facilitate the application of those commitments. However, the scope

of the intra-corporate transfers covered by this Directive should be broader than that

implied by trade commitments, as the transfers do not necessarily take place within the

services sector and may originate in a third country which is not party to a trade

agreement.

(14) To assess the qualifications of intra-corporate transferees, Member States should

make use of the European Qualifications Framework (EQF) for lifelong learning,

as appropriate, for the assessment of qualifications in a comparable and transparent

manner. EQF National Coordination Points may provide information and guidance

on how national qualifications levels relate to the EQF.

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(15) Intra-corporate transferees should benefit from at least the same terms and conditions

of employment as posted workers whose employer is established on the territory of the

Union, as defined by Directive 96/71/EC of the European Parliament and of the

Council1. Member States should require that intra-corporate transferees enjoy equal

treatment with nationals occupying comparable positions as regards the

remuneration which will be granted during the entire transfer. Each Member State

should be responsible for checking the remuneration granted to the intra-corporate

transferees during their stay on its territory. That is intended to protect workers and

guarantee fair competition between undertakings established in a Member State and

those established in a third country, as it ensures that the latter will not be able to

benefit from lower labour standards to take any competitive advantage.

(16) In order to ensure that the skills of the intra-corporate transferee are specific to the host

entity, ▌the transferee should have been employed within the same group of

undertakings from at least three up to twelve uninterrupted months immediately prior

to the transfer in the case of managers and specialists, and from at least three up to

six uninterrupted months in the case of trainee employees.

1 Directive 96/71/EC of the European Parliament and of the Council of 16 December 1996 concerning the posting of workers in the framework of the provision of services (OJ L 18, 21.1.1997, p. 1).

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(17) As intra-corporate transfers constitute temporary migration, the maximum duration

of one transfer to the Union, including mobility between Member States, should not

exceed three years for managers and specialists and one year for trainee employees

after which they should leave for a third country unless they obtain a residence

permit on another basis in accordance with Union or national law. The maximum

duration of the transfer should encompass the cumulated durations of consecutively

issued intra-corporate transferee permits. A subsequent transfer to the Union might

take place after the third-country national has left the territory of the Member

States.

(18) In order to ensure the temporary character of an intra-corporate transfer and

prevent abuses, Member States should be able to require a certain period of time to

elapse between the end of the maximum duration of one transfer and another

application concerning the same third-country national for the purposes of this

Directive in the same Member State.

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(19) As intra-corporate transfers consist of temporary secondment, the applicant should

provide evidence, as part of the work contract or the assignment letter, that the third-

country national will be able to transfer back to an entity belonging to the same group

and established in a third country at the end of the assignment. The applicant should

also provide evidence that the third-country national manager or specialist possesses

the professional qualifications and adequate professional experience needed in the

host entity to which he or she is to be transferred ▌.

(20) Third-country nationals who apply to be admitted as trainee employees should provide

evidence of a university degree. In addition, they should, if required, present a

training agreement, including a description of the training programme, its duration and

the conditions in which the trainee employees will be supervised, proving that they

will benefit from genuine training and not be used as normal workers.

(21) Unless it conflicts with the principle of ▌preference for Union citizens as expressed in

the relevant provisions of the relevant Acts of Accession, no labour market test should

be required ▌.

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(22) A Member State should recognise professional qualifications acquired by a third-

country national in another Member State in the same way as those of Union

citizens and should take into account qualifications acquired in a third country in

accordance with Directive 2005/36/EC of the European Parliament and the

Council1.Such recognition should be without prejudice to any restrictions on access

to regulated professions deriving from reservations to the existing commitments as

regards regulated professions made by the Union or by the Union and its Member

States in the framework of trade agreements. In any event, this Directive should not

provide for a more favourable treatment of intra-corporate transferees, in

comparison with Union or European Economic Area nationals, as regards access to

regulated professions in a Member State.

1 Directive 2005/36/EC of the European Parliament and the Council of 7 September 2005 on the recognition of professional qualifications (OL L 255, 30.9.2005, p. 22).

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(23) This Directive should not affect the right of the Member States to determine the

volumes of admission in accordance with Article 79(5) TFEU.

(24) With a view to fighting possible abuses of this Directive, Member States should be

able to refuse, withdraw or not renew an intra-corporate transferee permit where the

host entity was established for the main purpose of facilitating the entry of intra-

corporate transferees and/or does not have a genuine activity.

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(25) This Directive aims to facilitate mobility of intra-corporate transferees within the

Union ('intra-EU mobility') and to reduce the administrative burden associated with

work assignments in several Member States. For this purpose, this Directive sets up

a specific intra-EU mobility scheme whereby the holder of a valid intra-corporate

transferee permit issued by a Member State is allowed to enter, to stay and to work in

one or more Member States in accordance with the provisions governing short-term

and long-term mobility under this Directive. Short-term mobility for the purposes of

this Directive should cover stays in Member States other than the one that issued the

intra-corporate transferee permit, for a period of up to 90 days per Member State.

Long-term mobility for the purposes of this Directive should cover stays in Member

States other than the one that issued the intra-corporate transferee permit for more

than 90 days per Member State. In order to prevent circumvention of the distinction

between short-term and long-term mobility, short-term mobility in relation to a given

Member State should be limited to a maximum of 90 days in any 180-day period and

it should not be possible to submit a notification for short-term mobility and an

application for long-term mobility at the same time. Where the need for long-term

mobility arises after the short-term mobility of the intra-corporate transferee has

started, the second Member State may request that the application be submitted at

least 20 days before the end of the short-term mobility period.

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(26) While the specific mobility scheme established by this Directive should lay down

autonomous rules regarding entry and stay for the purpose of work as an intra-

corporate transferee in Member States other than the one that issued the intra-

corporate transferee permit, all the other rules governing the movement of persons

across borders as laid down in the relevant provisions of the Schengen acquis

continue to apply.

(27) In order to facilitate checks, if the transfer involves several locations in different

Member States, the competent authorities of second Member States should be

provided where applicable with the relevant information.

(28) Where intra-corporate transferees have exercised their right to mobility, the second

Member State should, under certain conditions, be in a position to take steps so that

the intra-corporate transferees' activities do not contravene the relevant provisions

of this Directive.

(29) Member States should provide for effective, proportionate and dissuasive sanctions,

such as financial sanctions, to be imposed in the event of failure to comply with this

Directive. Those sanctions could inter alia consist of measures as provided for in

Article 7 of Directive 2009/52/EC of the European Parliament and of the Council1.

Those sanctions could be imposed on the host entity established in the Member State

concerned.

1 Directive 2009/52/EC of the European Parliament and of the Council of 18 June 2009 providing for minimum standards on sanctions and measures against employers of illegally staying third-country nationals (OJ L 168, 30.6.2009, p. 24).

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(30) Provision for a single procedure leading to one combined title encompassing both

residence and work permit ("single permit") should contribute to simplifying the rules

currently applicable in Member States.

(31) It should be possible to set up a simplified procedure for entities or groups of

undertakings which have been recognised for that purpose. Recognition should be

regularly assessed.

(32) Once a Member State has decided to admit a third-country national fulfilling the

criteria laid down in this Directive, that third-country national should receive an intra-

corporate transferee permit allowing him or her to carry out, under certain conditions,

his or her assignment in diverse entities belonging to the same transnational

corporation, including entities located in other Member States.

(33) Where a visa is required and the third-country national fulfils the criteria for being

issued with an intra-corporate transferee permit, the Member State should grant the

third-country national every facility to obtain the requisite visa and should ensure

that the competent authorities effectively cooperate for that purpose.

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(34) Where the intra-corporate transferee permit is issued by a Member State not

applying the Schengen acquis in full and the intra-corporate transferee, in the

framework of intra-EU mobility, crosses an external border within the meaning of

Regulation (EC) No 562/2006 of the European Parliament and of the Council1, a

Member State should be entitled to require evidence proving that the intra-corporate

transferee is moving to its territory for the purpose of an intra-corporate transfer.

Besides, in case of crossing of an external border within the meaning of Regulation

(EC) No 562/2006, the Members States applying the Schengen acquis in full should

consult the Schengen information system and should refuse entry or object to the

mobility for persons for whom an alert for the purposes of refusing entry or stay, as

referred to in Regulation (EC) No 1987/2006 of the European Parliament and of the

Council2, has been issued in that system.

1 Regulation (EC) No 562/2006 of the European Parliament and of the Council of 15 March 2006 establishing a Community Code on the rules governing the movement of persons across borders (Schengen Borders Code) (OJ L 105, 13.4.2006, p. 1).

2 Regulation (EC) No 1987/2006 of the European Parliament and of the Council of 20 December 2006 on the establishment, operation and use of the second generation Schengen Information System (SIS II) (OJ L 381, 28.12.2006, p. 4).

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(35) Member States should be able to indicate additional information in paper format or

store such information in electronic format, as referred to in Article 4 of Council

Regulation (EC) No 1030/20021and point (a)16 of the Annex thereto, in order to

provide more precise information on the employment activity during the intra-

corporate transfer. The provision of this additional information should be optional

for Member States and should not constitute an additional requirement that would

compromise the single permit and the single application procedure.

(36) This Directive should not prevent intra-corporate transferees from exercising

specific activities at the sites of clients within the Member State where the host entity

is established in accordance with the provisions applying in that Member State with

regard to such activities.

1 Council Regulation (EC) No 1030/2002 of 13 June 2002 laying down a uniform format for residence permits for third-country nationals (OJ L 157, 15.6.2002, p. 1).

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(37) This Directive does not affect the conditions of the provision of services in the

framework of Article 56 TFEU. In particular, this Directive does not affect the terms

and conditions of employment which, pursuant to Directive 96/71/EC, apply to

workers posted by an undertaking established in a Member State to provide a service

in the territory of another Member State. This Directive should not apply to third-

country nationals posted by undertakings established in a Member State in the

framework of a provision of services in accordance with Directive 96/71/EC. Third-

country nationals holding an intra-corporate transferee permit cannot avail themselves

of Directive 96/71/EC. This Directive should not give undertakings established in a

third country any more favourable treatment than undertakings established in a

Member State, in line with Article 1(4) of Directive 96/71/EC.

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(38) Adequate social security coverage for intra-corporate transferees, including, where

relevant, benefits for their family members, is important for ensuring decent

working and living conditions while staying in the Union. Therefore, equal treatment

should be granted under national law in respect of those branches of social security

listed in Article 3 of Regulation (EC) No 883/2004 of the European Parliament and of

the Council1. This Directive does not harmonise the social security legislation of

Member States. It is limited to applying the principle of equal treatment in the field

of social security to the persons falling within its scope. The right to equal treatment

in the field of social security applies to third-country nationals who fulfil the

objective and non-discriminatory conditions laid down by the law of the Member

State where the work is carried out with regard to affiliation and entitlement to

social security benefits.

1 Regulation (EC) No 883/04 of the European Parliament and of the Council of 29 April 2004 on the coordination of social security systems (OJ L 166, 30.4.2004, p. 1).

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In many Member States, the right to family benefits is conditional upon a certain

connection with that Member State since the benefits are designed to support a

positive demographic development in order to secure the future work force in that

Member State. Therefore, this Directive should not affect the right of a Member

State to restrict, under certain conditions, equal treatment in respect of family

benefits, since the intra-corporate transferee and the accompanying family members

are staying temporarily in that Member State. Social security rights should be

granted without prejudice to provisions of national law and/or bilateral agreements

providing for the application of the social security legislation of the country of

origin. However, bilateral agreements or national law on social security rights of

intra-corporate transferees which are adopted after the entry into force of this

Directive should not provide for less favourable treatment than the treatment

granted to nationals of the Member State where the work is carried out. As a result

of national law or such agreements, it may be, for example, in the interests of the

intra-corporate transferees to remain affiliated to the social security system of their

country of origin if an interruption of their affiliation would adversely affect their

rights or if their affiliation would result in their bearing the costs of double

coverage. Member States should always retain the possibility to grant more

favourable social security rights to intra-corporate transferees. Nothing in this

Directive should affect the right of survivors who derive rights from the intra-

corporate transferee to receive survivor's pensions when residing in a third country.

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(39) In the event of mobility between Member States, Regulation (EU) No 1231/2010 of

the European Parliament and of the Council1 should apply accordingly. This

Directive should not confer more rights than those already provided for in existing

Union law in the field of social security for third-country nationals who have cross-

border interests between Member States.

(40) In order to make the specific set of rules established by this Directive more attractive

and to allow it to produce all the expected benefits for competitiveness of business in

the Union, third-country national intra-corporate transferees should be granted

favourable conditions for family reunification in the Member State which issued the

intra-corporate transferee permit and in those Member States which allow the intra-

corporate transferee to stay and work on their territory in accordance with the

provisions of this Directive on long-term mobility. This right would indeed remove an

important obstacle to potential intra-corporate transferees for accepting an assignment.

In order to preserve family unity, family members should be able to join the intra-

corporate transferee in another Member State, and their access to the labour market

should be facilitated.

1 Regulation (EU) No 1231/2010 of the European Parliament and of the Council of 24 November 2010 extending Regulation (EC) No 883/2004 and Regulation (EC) No 987/2009 on nationals of third countries who are not already covered by these Regulations solely on the ground of their nationality (OJ L 344, 29.12.2010, p.1).

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(41) In order to facilitate the fast processing of applications, Member States should give

preference to exchanging information and transmitting relevant documents

electronically, unless technical difficulties occur or essential interests require

otherwise.

(42) The collection and transmission of files and data should be carried out in

compliance with the relevant data protection and security rules.

(43) This Directive should not apply to third -country nationals who apply to reside in a

Member State as researchers in order to carry out a research project, as they fall within

the scope of Council Directive 2005/71/EC1.

(44) Since the objectives of this Directive, namely a special admission procedure and the

adoption of conditions of entry and residence for the purpose of intra-corporate

transfers of third-country nationals, cannot be sufficiently achieved by the Member

States but can rather, by reason of the scale and effects of the action, be better achieved

at Union level, the Union may adopt measures, in accordance with the principle of

subsidiarity as set out in Article 5 of the Treaty on European Union (TEU). In

accordance with the principle of proportionality as set out in that Article, this Directive

does not go beyond what is necessary in order to achieve those objectives.

1 Council Directive 2005/71/EC of 12 October 2005 on a specific procedure for admitting third-country nationals for the purposes of scientific research (OJ L 289, 3.11.2005, p. 15).

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(45) This Directive respects the fundamental rights and observes the principles recognised

▌by the Charter of Fundamental Rights of the European Union, which itself builds

upon the rights deriving from the Social Charters adopted by the Union and by the

Council of Europe.

(46) In accordance with the Joint Political Declaration of Member States and the

Commission on explanatory documents of 28 September 20111, Member States have

undertaken to accompany, in justified cases, the notification of their transposition

measures with one or more documents explaining the relationship between the

components of a directive and the corresponding parts of national transposition

instruments. With regard to this Directive, the legislator considers the transmission

of such documents to be justified.

1 OJ C 369, 17.12.2011, p. 14.

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(47) In accordance with Articles 1 and 2 of Protocol No 21 on the position of the United

Kingdom and Ireland in respect of the Area of Freedom, Security and Justice, annexed

to the TEU and to the TFEU, and without prejudice to Article 4 of that Protocol, those

Member States are not taking part in the adoption of this Directive, and are not bound

by or subject to its application. ▌

(48) In accordance with Articles 1 and 2 of Protocol No 22 on the position of Denmark

annexed to the TEU and the TFEU, Denmark is not taking part in the adoption of this

Directive, and is not bound by it or subject to its application,

HAVE ADOPTED THIS DIRECTIVE:

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CHAPTER I

GENERAL PROVISIONS

Article 1

Subject-matter

This Directive lays down:

(a) the conditions of entry to, and residence for more than 90 days in, the territory of the

Member States, and the rights, of third-country nationals and of their family members

in the framework of an intra-corporate transfer;

(b) the conditions of entry and residence, and the rights, of third-country nationals,

referred to in point (a), in Member States other than the Member State which first

grants the third-country national an intra-corporate transferee permit on the basis of

this Directive.

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Article 2

Scope

1. This Directive shall apply to third-country nationals who reside outside the territory of

the Member States at the time of application and apply to be admitted or who have

been admitted to the territory of a Member State under the terms of this Directive, in

the framework of an intra-corporate transfer as managers, specialists or trainee

employees.

2. This Directive shall not apply to ▌ third-country nationals who:

(a) apply to reside in a Member State as researchers, within the meaning of

Directive 2005/71/EC, in order to carry out a research project;

(b) ▌under agreements between the Union and its Member States and third

countries, enjoy rights of free movement equivalent to those of Union citizens or

are employed by an undertaking established in those third countries;

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(c) are posted in the framework of ▌ Directive 96/71/EC;

(d) carry out activities as self-employed workers;

(e) are assigned by employment agencies, temporary work agencies or any other

undertakings engaged in making available labour to work under the

supervision and direction of another undertaking;

(f) are admitted as full-time students or who are undergoing a short-term

supervised practical training as part of their studies.

3. This Directive shall be without prejudice to the right of Member States to issue

residence permits, other than the intra-corporate transferee permit covered by this

Directive, for any purpose of employment for third-country nationals who fall

outside the scope of this Directive.

29

Article 3

Definitions

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

(a) ‘third-country national’ means any person who is not a citizen of the Union, within the

meaning of Article 20(1) TFEU;

(b) 'intra-corporate transfer' means the temporary secondment for occupational or

training purposes of a third-country national who, at the time of application for an

intra-corporate transferee permit, resides outside the territory of the Member States,

from an undertaking established outside the territory of a Member State, and to which

the third-country national is bound by a work contract prior to and during the

transfer, to an entity belonging to the undertaking or to the same group of

undertakings which is established in that Member State, and, where applicable, the

mobility between host entities established in one or several second Member States;

30

(c) 'intra-corporate transferee' means any third-country national who resides outside the

territory of the Member States at the time of application for an intra-corporate

transferee permit and who is subject to an intra-corporate transfer;

(d) 'host entity' means the entity to which the intra-corporate transferee is transferred,

regardless of its legal form, established, in accordance with national law, in the

territory of a Member State;

(e) 'manager' means a person holding a senior position, who primarily directs the

management of the host entity, receiving general supervision or guidance principally

from the board of directors or shareholders of the business or equivalent; that position

shall include: directing the host entity or a department or subdivision of the host

entity; supervising and controlling ▌work of the other supervisory, professional or

managerial employees; having the authority to recommend hiring, dismissing or other

personnel action;

31

(f) 'specialist' means a person working within the group of undertakings possessing

specialised knowledge essential ▌to the host entity’s areas of activity, techniques or

management. In assessing such knowledge, account shall be taken not only of

knowledge specific to the host entity, but also of whether the person has a high level of

qualification including adequate professional experience referring to a type of work

or activity requiring specific technical knowledge, including possible membership of

an accredited profession;

(g) 'trainee employee' means a person with a university degree who is transferred to a

host entity for career development purposes or in order to obtain training in business

techniques or methods, and is paid during the transfer;

▌

(i) 'family members' means the third-country nationals referred to in Article 4(1) of

Council Directive 2003/86/EC1;

1 Council Directive 2003/86/EC of 22 September 2003 on the right to family reunification (OJ L 251, 3.10.2003, p. 12).

32

(j) 'intra-corporate transferee permit' means an authorisation bearing the acronym ‘ICT’

entitling its holder to reside and work in the territory of the first Member State and,

where applicable, of second Member States, under the terms of this Directive;

(k) 'permit for long-term mobility' means an authorisation bearing the term “mobile

ICT” entitling the holder of an intra-corporate transferee permit to reside and work

in the territory of the second Member State under the terms of this Directive;

(l) 'single application procedure' means the procedure leading, on the basis of one

application for the authorisation for residence and work of a third-country national in

the territory of a Member State, to a decision on that application;

33

(m) 'group of undertakings' means two or more undertakings recognised as linked under

national law in the following ways: an undertaking, in relation to another undertaking

directly or indirectly, holds a majority of that undertaking's subscribed capital; controls

a majority of the votes attached to that undertaking's issued share capital; is entitled to

appoint more than half of the members of that undertaking's administrative,

management or supervisory body; or the undertakings are managed on a unified

basis by the parent undertaking;

(n) 'first Member State' means the Member State which first issues a third-country

national an intra-corporate transferee permit;

(o) 'second Member State' means any Member State in which the intra-corporate

transferee intends to exercise or exercises the right of mobility within the meaning of

this Directive, other than the first Member State;

(p) 'regulated profession' means a regulated profession as defined in point (a) of Article

3(1) of Directive 2005/36/EC.

34

Article 4

More favourable provisions

1. This Directive shall apply without prejudice to more favourable provisions of:

(a) Union law, including bilateral and multilateral agreements concluded between

the Union and its Member States on the one hand and one or more third countries

on the other;

(b) bilateral or multilateral agreements concluded between one or more Member

States and one or more third countries.

2. This Directive shall not affect the right of Member States to adopt or retain more

favourable provisions for third-country nationals to whom it applies in respect of point

(i) of Article 3, and Articles 15, 18 and 19.

35

CHAPTER II

CONDITIONS OF ADMISSION

Article 5

Criteria for admission

1. Without prejudice to Article 11(1), a third-country national who applies to be admitted

under the terms of this Directive or the host entity shall:

(a) provide evidence that the host entity and the undertaking established in a third

country belong to the same undertaking or group of undertakings;

(b) provide evidence of employment within the same undertaking or group of

undertakings, from at least three up to twelve uninterrupted months

immediately preceding the date of the intra-corporate transfer in the case of

managers and specialists, and from at least three up to six uninterrupted

months in the case of trainee employees;

36

(c) present a work contract and, if necessary, an assignment letter from the

employer containing the following:

(i) details of the duration of the transfer and the location of the host entity or

entities;

(ii) evidence that the third-country national is taking a position as a manager,

specialist or ▌trainee employee in the host entity or entities in the Member

State concerned;

(iii) the remuneration as well as other terms and conditions of employment

granted during the intra-corporate transfer;

(iv) evidence that the third-country national will be able to transfer back to

an entity belonging to that undertaking or group of undertakings and

established in a third country at the end of the intra-corporate transfer;

37

(d) provide evidence that the third-country national has the professional

qualifications and experience needed in the host entity to which he or she is to

be transferred as manager or specialist or, in the case of a trainee employee, the

university degree required;

(e) where applicable, present documentation certifying that the third-country

national fulfils the conditions laid down under the national law of the Member

State concerned for Union citizens to exercise the regulated profession to which

the application relates;

(f) present a valid travel document of the third-country national, as determined by

national law, and, if required, an application for a visa or a visa; Member States

may require the period of validity of the travel document to cover at least the

period of validity of the intra-corporate transferee permit;

38

(g) without prejudice to existing bilateral agreements, provide evidence of having,

or, if provided for by national law, having applied for, sickness insurance for all

the risks normally covered for nationals of the Member State concerned for

periods where no such insurance coverage and corresponding entitlement to

benefits are provided in connection with, or as a result of, the work carried out

in that Member State.

2. Member States may require the applicant to present the documents listed in points

(a), (c), (d), (e) and (g) of paragraph 1 in an official language of the Member State

concerned.

3. Member States may require the applicant to provide, at the latest at the time of the

issue of the intra-corporate transferee permit, the address of the third-country

national concerned in the territory of the Member State.

39

4. Member States shall require that:

(a) all conditions in the law, regulations, or administrative provisions and/or

universally applicable collective agreements applicable to posted workers in a

similar situation in the relevant occupational branches are met during the intra-

corporate transfer with regard to terms and conditions of employment other

than remuneration.

In the absence of a system for declaring collective agreements of universal

application, Member States may base themselves on collective agreements

which are generally applicable to all similar undertakings in the geographical

area and in the profession or industry concerned, and/or collective agreements

which have been concluded by the most representative employers and

employee organisations at national level and which are applied throughout

their national territory;

40

(b) the remuneration granted to the third-country national during the entire intra-

corporate transfer is not less favourable than the remuneration granted to

nationals of the Member State where the work is carried out occupying

comparable positions in accordance with applicable laws or collective

agreements or practices in the Member State where the host entity is

established.

5. On the basis of the documentation provided pursuant to paragraph 1, Member States

may require that the intra-corporate transferee will have sufficient resources during

his or her stay to maintain himself or herself and his or her family members without

having recourse to the Member States’ social assistance systems.

6. In addition to the evidence required under paragraph 1, any third-country national who

applies to be admitted as a ▌trainee employee may be required to present a training

agreement relating to the preparation for his or her future position within the

undertaking or group of undertakings, including a description of the training

programme, which demonstrates that the purpose of the stay is to train the trainee

employee for career development purposes or in order to obtain training in business

techniques or methods, its duration and the conditions under which the trainee

employee is supervised during the programme.

41

▌

7. Any modification during the application procedure that affects the criteria for

admission set out in this Article shall be notified by the applicant to the competent

authorities of the Member State concerned.

8. Third-country nationals who are considered to pose a threat to public policy, public

security or public health shall not be admitted for the purposes of this Directive.

Article 6

Volumes of admission

This Directive shall not affect the right of a Member State to determine the volumes of

admission of third-country nationals in accordance with Article 79(5) TFEU. On that basis,

an application for an intra-corporate transferee permit may either be considered inadmissible

or be rejected.

42

Article 7

Grounds for rejection

1. Member States shall reject an application for an intra-corporate transferee permit in

any of the following cases:

(a) where Article 5 is not complied with;

(b) where the documents presented were fraudulently acquired, or falsified, or

tampered with;

(c) where the host entity was established for the main purpose of facilitating the

entry of intra-corporate transferees;

(d) where the maximum duration of stay as defined in Article 12(1) has been

reached.

43

2. Member States shall, if appropriate, reject an application where the employer or the

host entity has been sanctioned in accordance with national law for undeclared work

and/or illegal employment.

3. Member States may reject an application for an intra-corporate transferee permit in any

of the following cases:

(a) where the employer or the host entity has failed to meet its legal obligations

regarding social security, taxation, labour rights or working conditions;

(b) where the employer's or the host entity's business is being or has been wound

up under national insolvency laws or no economic activity is taking place;

(c) where the intent or effect of the temporary presence of the intra-corporate

transferee is to interfere with, or otherwise affect the outcome of, any labour

management dispute or negotiation.

44

4. Member States may reject an application for an intra-corporate transferee permit on

the ground set out in Article 12(2).

5. Without prejudice to paragraph 1, any decision to reject an application shall take

account of the specific circumstances of the case and respect the principle of

proportionality.

Article 8

Withdrawal or non-renewal of the intra-corporate transferee permit

1. Member States shall withdraw ▌an intra-corporate transferee permit in any of the

following cases:

(a) where it was fraudulently acquired, or falsified, or tampered with;

45

(b) where the intra-corporate transferee is residing in the Member State concerned

for purposes other than those for which he or she was authorised to reside;

(c) where the host entity was established for the main purpose of facilitating the

entry of intra-corporate transferees.

2. Member States shall, if appropriate, withdraw an intra-corporate transferee permit

where the employer or the host entity has been sanctioned in accordance with

national law for undeclared work and/or illegal employment.

3. Member States shall refuse to renew an intra-corporate transferee permit in any of

the following cases:

(a) where it was fraudulently acquired, or falsified, or tampered with;

46

(b) where the intra-corporate transferee is residing in the Member State

concerned for purposes other than those for which he or she was authorised to

reside;

(c) where the host entity was established for the main purpose of facilitating the

entry of intra-corporate transferees;

(d) where the maximum duration of stay as defined in Article 12(1) has been

reached.

4. Member States shall, if appropriate, refuse to renew an intra-corporate transferee

permit where the employer or the host entity has been sanctioned in accordance with

national law for undeclared work and/or illegal employment.

47

5. Member States may withdraw or refuse to renew an intra-corporate transferee permit

in any of the following cases:

(a) where Article 5 is not ▌or is no longer complied with;

(b) where the employer or the host entity has failed to meet its legal obligations

regarding social security, taxation, labour rights or working conditions;

(c) where the employer's or the host entity's business is being or has been wound

up under national insolvency laws or if no economic activity is taking place;

(d) where the intra-corporate transferee has not complied with the mobility rules

set out in Articles 21 and 22.

6. Without prejudice to paragraphs 1 and 3, any decision to withdraw or to refuse to

renew an intra-corporate transferee permit shall take account of the specific

circumstances of the case and respect the principle of proportionality.

48

Article 9

Sanctions

1. Member States may hold the host entity responsible ▌for failure to comply with the

conditions of admission, stay and mobility laid down in this Directive.

2. The Member State concerned shall provide for sanctions where the host entity is

held responsible in accordance with paragraph 1. Those sanctions shall be effective,

proportionate and dissuasive.

3. Member States shall provide for measures to prevent possible abuses and to sanction

infringements of this Directive. Measures shall include monitoring, assessment and,

where appropriate, inspection in accordance with national law or administrative

practice.

49

CHAPTER III

PROCEDURE AND PERMIT

Article 10

Access to information

1. Member States shall make easily accessible to applicants the information on all the

documentary evidence needed for an application and information on entry and

residence, including the rights, obligations and procedural safeguards, of the intra-

corporate transferee and of his or her family members. Member States shall also

make easily available information on the procedures applicable to the short-term

mobility referred to in Article 21(2) and to the long-term mobility referred to in

Article 22(1).

2. The Member States concerned shall make available information to the host entity on

the right of Member States to impose sanctions in accordance with Articles 9 and 23.

50

Article 11

Applications for an intra-corporate transferee permit or a permit for long-term mobility

1. Member States shall determine whether an application is to be submitted by the third-

country national or by the host entity. Member States may also decide to allow an

application from either of the two.

2. The application for an intra-corporate transferee permit shall be submitted when the

third-country national is residing outside the territory of the Member State to which

admission is sought.

3. The application for an intra-corporate transferee permit shall be submitted to the

authorities of the Member State where the first stay takes place. Where the first stay is

not the longest, the application shall be submitted to the authorities of the Member

State where the longest overall stay is to take place during the transfer.

4. Member States shall designate the authorities competent to receive the application and

to issue the intra-corporate transferee permit or the permit for long-term mobility.

51

5. The applicant shall be entitled to submit an application in a single application

procedure.

▌

6. Simplified procedures relating to the issue of intra-corporate transferee permits,

permits for long-term mobility, permits granted to family members of an intra-

corporate transferee, and visas may be made available to entities or to undertakings

or groups of undertakings that have been recognised for that purpose by Member

States in accordance with their national law or administrative practice.

Recognition shall be regularly reassessed.

▌

52

7. The simplified procedures provided for in paragraph 6 shall at least include:

(a) exempting the applicant from presenting some of the evidence referred to in

Article 5 or in point (a) of Article 22(2);

(b) a fast-track admission procedure allowing intra-corporate transferee permits and

permits for long-term mobility to be issued within a shorter time than specified

in Article 15(1) or in point (b) of Article 22(2);

and/or

(c) facilitated and/or accelerated procedures in relation to the issue of the

requisite visas.

53

8. Entities or undertakings or groups of undertakings which have been recognised in

accordance with paragraph 6 shall notify to the relevant authority any modification

affecting the conditions for recognition without delay and, in any event, within 30

days.

9. Member States shall provide for appropriate sanctions, including revocation of

recognition, in the event of failure to notify the relevant authority.

Article 12

Duration of an intra-corporate transfer

1. The maximum duration of the intra-corporate transfer shall be three years for

managers and specialists and one year for trainee employees after which they shall

leave the territory of the Member States unless they obtain a residence permit on

another basis in accordance with Union or national law.

2. Without prejudice to their obligations under international agreements, Member

States may require a period of up to six months to elapse between the end of the

maximum duration of a transfer referred to in paragraph 1 and another application

concerning the same third-country national for the purposes of this Directive in the

same Member State.

54

Article 13

Intra-corporate transferee permit

1. Intra-corporate transferees who fulfil the admission criteria set out in Article 5 and for

whom the competent authorities have taken a positive decision shall be issued with an

intra-corporate transferee permit.

2. The period of validity of the intra-corporate transferee permit shall be at least one year

or the duration of the transfer to the territory of the Member State concerned,

whichever is shorter, and may be extended to a maximum of three years for managers

and specialists and one year for trainee employees.

3. The intra-corporate transferee permit shall be issued by the competent authorities of

the Member State using the uniform format laid down in Regulation (EC) No

1030/2002. ▌

55

4. Under the heading 'type of permit', in accordance with point (a) 6.4 of the Annex to

Regulation (EC) No 1030/2002, the Member States shall enter "ICT".

Member States may also add an indication in their official language or languages.

5. Member States shall not issue any additional permits, in particular work permits of any

kind.

6. Member States may indicate additional information relating to the employment

activity during the intra-corporate transfer of the third-country national in paper

format, and/or store such data in electronic format as referred to in Article 4 of

Regulation (EC) 1030/2002 and point (a)16 of the Annex thereto.

7. The Member State concerned shall grant third-country nationals whose application

for admission has been accepted every facility to obtain the requisite visa.

56

Article 14

Modifications affecting the conditions for admission during the stay

Any modification during the stay that affects the conditions for admission set out in Article 5

shall be notified by the applicant to the competent authorities of the Member State

concerned.

Article 15

Procedural safeguards

1. The competent authorities of the Member State concerned shall adopt a decision on the

application for ▌an intra-corporate transferee permit or a renewal of it and notify the

decision to the applicant in writing, in accordance with the notification procedures

under national law, as soon as possible but not later than 90 days from the date on

which the complete application was submitted. ▌

57

2. Where the information or documentation supplied in support of the application is

incomplete, the competent authorities shall notify the applicant within a reasonable

period of the additional information that is required and set a reasonable deadline for

providing it. The period referred to in paragraph 1 shall be suspended until the

competent authorities have received the additional information required.

3. Reasons for a decision declaring inadmissible or rejecting an application or refusing

renewal shall be given to the applicant in writing. Reasons for a decision withdrawing

an intra-corporate transferee permit shall be given in writing to the intra-corporate

transferee and to the host entity.

4. Any decision declaring inadmissible or rejecting the application, refusing renewal,

or withdrawing an intra-corporate transferee permit shall be open to legal challenge

in the Member State concerned, in accordance with national law. The written

notification shall specify the court or administrative authority with which an appeal

may be lodged and the time-limit for lodging the appeal.

58

5. Within the period referred to in Article 12(1) an applicant shall be allowed to submit

an application for renewal before the expiry of the intra-corporate transferee permit.

Member States may set a maximum deadline of 90 days prior to the expiry of the

intra-corporate transferee permit for submitting an application for renewal.

6. Where the validity of the intra-corporate transferee permit expires during the

procedure for renewal, Member States shall allow the intra-corporate transferee to

stay on their territory until the competent authorities have taken a decision on the

application. In such a case, they may issue, where required under national law,

national temporary residence permits or equivalent authorisations.

59

Article 16

Fees

Member States may require the payment of fees for the handling of applications in

accordance with this Directive. The level of such fees shall not be disproportionate or

excessive.

CHAPTER IV

RIGHTS

Article 17

Rights on the basis of the intra-corporate transferee permit

During the period of validity of an intra-corporate transferee permit, the holder shall enjoy at

least the following rights:

(a) the right to enter and stay in the territory of the first Member State ;

(b) free access to the entire territory of the first Member State in accordance with its

national law;

60

(c) the right to exercise the specific employment activity authorised under the permit in

accordance with national law in any host entity belonging to the undertaking or the

group of undertakings in the first Member State.

▌The rights referred to in points (a) to (c) of the first paragraph of this Article shall be enjoyed

in second Member States in accordance with Article 20.

Article 18

Right to equal treatment

1. Whatever the law applicable to the employment relationship, and without prejudice to

point (b) of Article 5(4), intra-corporate transferees admitted under this Directive shall

enjoy at least equal treatment with persons covered by Directive 96/71/EC with

regard to the terms and conditions of employment in accordance with Article 3 of

Directive 96/71/EC in the Member State where the work is carried out.

▌

61

2. Intra-corporate transferees shall enjoy equal treatment with nationals of the

▌Member State where the work is carried out as regards:

(a) freedom of association and affiliation and membership of an organisation

representing workers or employers or of any organisation whose members are

engaged in a specific occupation, including the rights and benefits conferred by

such organisations, without prejudice to the national provisions on public policy

and public security;

(b) recognition of diplomas, certificates and other professional qualifications in

accordance with the relevant national procedures;

62

(c) ▌provisions in national law regarding the branches of social security defined in

Article 3 of Regulation (EC) No 883/2004, unless the law of the country of

origin applies by virtue of bilateral agreements or the national law of the

Member State where the work is carried out, ensuring that the intra-corporate

transferee is covered by the social security legislation in one of those countries.

In the event of intra-EU mobility, and without prejudice to ▌bilateral agreements

ensuring that the intra-corporate transferee is covered by the national law of

the country of origin, Regulation (EC) No 1231/2010▌ shall apply accordingly;

(d) without prejudice to Regulation (EC) 1231/2010 and to ▌bilateral agreements,

payment of old-age, invalidity and death statutory pensions based on the intra-

corporate transferees’ previous employment and acquired by intra-corporate

transferees moving to a third country, or the survivors of such intra-corporate

transferees residing in a third country deriving rights from the intra-corporate

transferee, in accordance with the legislation set out in Article 3 of Regulation

(EC) No 883/2004, under the same conditions and at the same rates as the

nationals of the Member State concerned when they move to a third country;

63

(e) access to goods and services and the supply of goods and services made

available to the public, except procedures for obtaining housing as provided for

by national law, without prejudice to freedom of contract in accordance with

Union and national law, and services afforded by public employment offices.

The bilateral agreements or national law referred to in this paragraph shall

constitute international agreements or Member States' provisions within the

meaning of Article 4.

3. Without prejudice to Regulation (EU) No 1231/2010, Member States may decide that

point (c) of paragraph 2 with regard to family benefits shall not apply to intra-

corporate transferees who have been authorised to reside and work in the territory of

a Member State for a period not exceeding nine months.

4. This Article shall be without prejudice to the right of the Member State to withdraw or

to refuse to renew the permit in accordance with Article 8.

64

Article 19

Family members

1. Directive 2003/86/EC shall apply in the first Member State and in second Member

States which allow the intra-corporate transferee to stay and work on their territory

in accordance with Article 22 of this Directive, subject to the derogations laid down in

this Article.

2. By way of derogation from Article 3(1) and Article 8 of Directive 2003/86/EC, family

reunification in the ▌Member States shall not be made dependent on the requirement

that the holder of the permit issued by those Member States on the basis of this

Directive has reasonable prospects of obtaining the right of permanent residence and

has a minimum period of residence.

3. By way of derogation from the third subparagraph of Article 4(1) and from Article

7(2) of Directive 2003/86/EC, the integration measures referred to therein may be

applied by the ▌ Member States only after the persons concerned have been granted

family reunification.

65

4. By way of derogation from the first subparagraph of Article 5(4) of Directive

2003/86/EC, residence permits for family members shall be granted by a Member

State, if the conditions for family reunification are fulfilled, ▌ within 90 days from the

date on which the complete application was submitted. The competent authority of

the Member State shall process the residence permit application for the intra-

corporate transferee's family members at the same time as the application for the

intra-corporate transferee permit or the permit for long-term mobility, in cases

where the residence permit application for the intra-corporate transferee's family

members is submitted at the same time. The procedural safeguards laid down in

Article 15 shall apply accordingly.

5. By way of derogation from Article 13(2) ▌of Directive 2003/86/EC, the duration of

validity of the residence permits of family members in a ▌Member State shall, as a

general rule, end on the date of expiry of the intra-corporate transferee permit or the

permit for long-term mobility issued by that Member State.

66

6. By way of derogation from Article 14(2) of Directive 2003/86/EC and without

prejudice to the principle of preference for Union citizens as expressed in the

relevant provisions of the relevant Acts of Accession, the family members of the

intra-corporate transferee who have been granted family reunification shall be

entitled to have access to employment and self-employed activity in the territory of

the Member State which issued the family member residence permit ▌.

CHAPTER V

INTRA-EU MOBILITY

Article 20

Mobility

Third-country nationals who hold a valid intra-corporate transferee permit issued by the first

Member State may, on the basis of that permit and a valid travel document and under the

conditions laid down in Article 21 and 22 and subject to Article 23, enter, stay and work in

one or several second Member States.

67

Article 21

Short-term mobility

1. Third-country nationals who hold a valid intra-corporate transferee permit issued by

the first Member State shall be entitled to stay in any second Member State and work

in any other entity, established in the latter and belonging to the same undertaking

or group of undertakings, for a period of up to 90 days in any 180-day period per

Member State subject to the conditions laid down in this Article.

2. The second Member State may require the host entity in the first Member State to

notify the first Member State and the second Member State of the intention of the

intra-corporate transferee to work in an entity established in the second Member

State.

In such cases, the second Member State shall allow the notification to take place

either:

(a) at the time of the application in the first Member State, where the mobility to

the second Member State is already envisaged at that stage; or

68

(b) after the intra-corporate transferee was admitted to the first Member State, as

soon as the intended mobility to the second Member State is known.

3. The second Member State may require the notification to include the transmission of

the following documents and information:

(a) evidence that the host entity in the second Member State and the undertaking

established in a third country belong to the same undertaking or group of

undertakings;

(b) the work contract and, if necessary, the assignment letter, which were

transmitted to the first Member State in accordance with point (c) of Article

5(1);

69

(c) where applicable, documentation certifying that the intra-corporate transferee

fulfils the conditions laid down under the national law of the Member State

concerned for Union citizens to exercise the regulated profession to which the

application relates;

(d) a valid travel document, as provided for in point (f) of Article 5(1); and

(e) where not specified in any of the preceding documents, the planned duration

and dates of the mobility.

The second Member State may require those documents and that information to be

presented in an official language of that Member State.

70

4. Where the notification has taken place in accordance with point (a) of paragraph 2,

and where the second Member State has not raised any objection with the first

Member State in accordance with paragraph 6, the mobility of the intra-corporate

transferee to the second Member State may take place at any moment within the

period of validity of the intra-corporate transferee permit.

5. Where the notification has taken place in accordance with point (b) of paragraph 2,

the mobility may be initiated after the notification to the second Member State

immediately or at any moment thereafter within the period of validity of the intra-

corporate transferee permit.

6. Based on the notification referred to in paragraph 2, the second Member State may

object to the mobility of the intra-corporate transferee to its territory within 20 days

from having received the notification, where:

71

(a) the conditions set out in point (b) of Article 5(4) or in point (a), (c) or (d) of

paragraph 3 of this Article are not complied with;

(b) the documents presented were fraudulently acquired, or falsified, or tampered

with;

(c) the maximum duration of stay as defined in Article 12(1) or in paragraph 1 of

this Article has been reached.

The competent authorities of the second Member State shall inform without delay

the competent authorities of the first Member State and the host entity in the first

Member State about their objection to the mobility.

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7. Where the second Member State objects to the mobility in accordance with

paragraph 6 of this Article and the mobility has not yet taken place, the intra-

corporate transferee shall not be allowed to work in the second Member State as part

of the intra-corporate transfer. Where the mobility has already taken place, Article

23(4) and (5) shall apply.

8. Where the intra-corporate transferee permit is renewed by the first Member State

within the maximum duration provided for in Article 12(1), the renewed intra-

corporate transferee permit shall continue to authorise its holder to work in the

second Member State, subject to the maximum duration provided for in paragraph 1

of this Article.

9. Intra-corporate transferees who are considered to pose a threat to public policy,

public security or public health shall not be allowed to enter or to stay on the

territory of the second Member State.

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Article 22

Long-term mobility

1. In relation to third-country nationals who hold a valid intra-corporate transferee

permit issued by the first Member State and who intend to stay in any second

Member State and work in any other entity, established in the latter and belonging to

the same undertaking or group of undertakings, for more than 90 days per Member

State, the second Member State may decide to:

(a) apply Article 21 and allow the intra-corporate transferee to stay and work on

its territory on the basis of and during the period of validity of the intra-

corporate transferee permit issued by the first Member State;

or

(b) apply the procedure provided for in paragraphs 2 to 7.

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2. Where an application for long-term mobility is submitted:

(a) the second Member State may require the applicant to transmit some or all of

the following documents where they are required by the second Member State

for an initial application:

(i) evidence that the host entity in the second Member State and the

undertaking established in a third country belong to the same

undertaking or group of undertakings;

(ii) a work contract and, if necessary, an assignment letter, as provided for in

point (c) of Article 5(1);

(iii) where applicable, documentation certifying that the third-country

national fulfils the conditions laid down under the national law of the

Member State concerned for Union citizens to exercise the regulated

profession to which the application relates;

75

(iv) a valid travel document, as provided for in point (f) of Article 5(1);

(v) evidence of having, or, if provided for by national law, having applied

for, sickness insurance, as provided for in point (g) of Article 5(1).

The second Member State may require the applicant to provide, at the latest at

the time of issue of the permit for long-term mobility, the address of the intra-

corporate transferee concerned in the territory of the second Member State.

The second Member State may require those documents and that information

to be presented in an official language of that Member State;

76

(b) the second Member State shall take a decision on the application for long-term

mobility and notify the decision to the applicant in writing as soon as possible

but not later than 90 days from the date on which the application and the

documents provided for in point (a) were submitted to the competent

authorities of the second Member State;

(c) the intra-corporate transferee shall not be required to leave the territories of

the Member States in order to submit the application and shall not be subject

to a visa requirement;

(d) the intra-corporate transferee shall be allowed to work in the second Member

State until a decision on the application for long-term mobility has been taken

by the competent authorities, provided that:

77

(i) the time period referred to in Article 21(1) and the period of validity of

the intra-corporate transferee permit issued by the first Member State

has not expired; and

(ii) if the second Member State so requires, the complete application has

been submitted to the second Member State at least 20 days before the

long-term mobility of the intra-corporate transferee starts;

(e) an application for long-term mobility may not be submitted at the same time as

a notification for short-term mobility. Where the need for long-term mobility

arises after the short-term mobility of the intra-corporate transferee has

started, the second Member State may request that the application for long-

term mobility be submitted at least 20 days before the short-term mobility ends.

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3. Member States may reject an application for long-term mobility where:

(a) the conditions set out in point (a) of paragraph 2 of this Article are not

complied with or the criteria set out in Article 5(4), Article 5(5) or Article 5(8)

are not complied with;

(b) one of the grounds covered by point (b) or (d) of Article 7(1) or by Article 7(2),

(3) or (4) applies;

or

(c) the intra-corporate transferee permit expires during the procedure.

79

4. Where the second Member State takes a positive decision on the application for

long-term mobility as referred to in paragraph 2, the intra-corporate transferee shall

be issued with a permit for long-term mobility allowing the intra-corporate

transferee to stay and work in its territory. This permit shall be issued using the

uniform format laid down in Regulation (EC) No 1030/2002. Under the heading

‘type of permit’, in accordance with point (a) 6.4. of the Annex to Regulation (EC)

No 1030/2002, the Member States shall enter: “mobile ICT”. Member States may

also add an indication in their official language or languages.

Member States may indicate additional information relating to the employment

activity during the long-term mobility of the intra-corporate transferee in paper

format, and/or store such data in electronic format as referred to in Article 4 of

Regulation (EC) 1030/2002 and point (a)16 of the Annex thereto.

5. Renewal of a permit for long-term mobility is without prejudice to Article 11(3).

6. The second Member State shall inform the competent authorities in the first Member

State where a permit for long-term mobility is issued.

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7. Where a Member State takes a decision on an application for long-term mobility,

Article 8, Article 15(2) to (6) and Article 16 shall apply accordingly.

Article 23

Safeguards and sanctions

1. Where the intra-corporate transferee permit is issued by a Member State not

applying the Schengen acquis in full and the intra-corporate transferee crosses an

external border, the second Member State shall be entitled to require as evidence

that the intra-corporate transferee is moving to the second Member State for the

purpose of an intra-corporate transfer:

(a) a copy of the notification sent by the host entity in the first Member State in

accordance with Article 21(2);

or

(b) a letter from the host entity in the second Member State that specifies at least

the details of the duration of the intra-EU mobility and the location of the host

entity or entities in the second Member State.

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2. Where the first Member State withdraws the intra-corporate transferee permit, it

shall inform the authorities of the second Member State immediately.

3. The host entity of the second Member State shall inform the competent authorities of

the second Member State of any modification which affects the conditions on which

basis the mobility was allowed to take place.

4. The second Member State may request that the intra-corporate transferee

immediately cease all employment activity and leave its territory where:

(a) it has not been notified in accordance with Article 21(2) and (3) and requires

such notification;

82

(b) it has objected to the mobility in accordance with Article 21(6);

(c) it has rejected an application for long-term mobility in accordance with Article

22(3);

(d) the intra-corporate transferee permit or the permit for long-term mobility is

used for purposes other than those for which it was issued;

(e) the conditions on which the mobility was allowed to take place are no longer

fulfilled.

5. In the cases referred to in paragraph 4, the first Member State shall, upon request of

the second Member State, allow re-entry of the intra-corporate transferee, and,

where applicable, of his or her family members, without formalities and without

delay. That shall also apply if the intra-corporate transferee permit issued by the first

Member State has expired or has been withdrawn during the period of mobility

within the second Member State.

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6. Where the holder of an intra-corporate transferee permit crosses the external border

of a Member State applying the Schengen acquis in full, that Member State shall

consult the Schengen information system. That Member State shall refuse entry or

object to the mobility of persons for whom an alert for the purposes of refusing entry

and stay has been issued in the Schengen information system.

7. Member States may impose sanctions against the host entity established on its

territory in accordance with Article 9, where:

(a) the host entity has failed to notify the mobility of the intra-corporate transferee

in accordance with Article 21(2) and (3);

(b) the intra-corporate transferee permit or the permit for long-term mobility is

used for purposes other than those for which it was issued;

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(c) the application for an intra-corporate transferee permit has been submitted to

a Member State other than the one where the longest overall stay takes place;

(d) the intra-corporate transferee no longer fulfils the criteria and conditions on

the basis of which the mobility was allowed to take place and the host entity

fails to notify the competent authorities of the second Member State of such a

modification;

(e) the intra-corporate transferee started to work in the second Member State,

although the conditions for mobility were not fulfilled in case Article 21(5) or

point (d) of Article 22(2) applies.

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CHAPTER VI

FINAL PROVISIONS

Article 24

Statistics

1. Member States shall communicate to the Commission statistics on the number of

intra-corporate transferee permits and permits for long-term mobility issued for the

first time, and, where applicable, the notifications received pursuant to Article 21(2)

and, as far as possible, on the number of intra-corporate transferees whose permit has

been renewed or withdrawn. Those statistics shall be disaggregated by citizenship and

by the period of validity of the permit and, as far as possible, by the economic sector

and transferee position.

2. The statistics shall ▌relate to reference periods of one calendar year and shall be

communicated to the Commission within six months of the end of the reference year.

The first reference year shall be …*.

3. The statistics shall be communicated in accordance with Regulation (EC) No

862/2007 of the European Parliament and of the Council1.

* OJ: please insert year: the year following the year referred to in Article 27(1).1 Regulation (EC) No 862/2007 of the European Parliament and of the Council of 11 July 2007

on Community statistics on migration and international protection and repealing Council Regulation (EEC) No 311/76 on the compilation of statistics on foreign workers (JO L 199, 31.7.2007, p. 23).

86

Article 25

Reporting

Every three years, and for the first time by …*, the Commission shall submit a report to the

European Parliament and to the Council on the application of this Directive in the Member

States and shall propose any amendments necessary. The report shall focus in particular on

the assessment of the proper functioning of the intra-EU mobility scheme and on possible

misuses of such a scheme as well as its interaction with the Schengen acquis. The

Commission shall in particular assess the practical application of Articles 20, 21, 22, 23 and

26.

Article 26

Cooperation between contact points

1. Member States shall appoint contact points which shall cooperate effectively and be

responsible for receiving and transmitting the information needed to implement

Articles 21, 22 and 23. Member States shall give preference to exchanging of

information via electronic means.

* OJ: please insert the date: 66 months from the date of entry into force of this Directive.

87

2. Each Member State shall inform the other Member States, via the national contact

points referred to in paragraph 1, about the designated authorities referred to in

Article 11(4) and about the procedure applied to mobility referred to in the Articles

21 and 22.

Article 27

Transposition

1. Member States shall bring into force the laws, regulations and administrative

provisions necessary to comply with this Directive by …*. They shall forthwith

communicate the text of those measures to the Commission ▌.

When Member States adopt those measures, they shall contain a reference to this

Directive or be accompanied by such reference on the occasion of their official

publication. Member States shall determine how such reference is to be made.

2. Member States shall communicate to the Commission the text of the main provisions

of national law which they adopt in the field covered by this Directive.

* OJ: please insert the date: 30 months from the date of entry into force of this Directive.

88

Article 28

Entry into force

This Directive shall enter into force on the day following that of its publication in the Official

Journal of the European Union.

Article 29

Addressees

This Directive is addressed to the Member States in accordance with the Treaties.

Done at,

For the European Parliament For the Council

The President The President

89

ANNEX TO THE LEGISLATIVE RESOLUTION

JOINT STATEMENT BY PARLIAMENT, THE COUNCIL AND THE COMMISSION

This Directive establishes an autonomous mobility scheme providing for specific rules, adopted on the basis of points (a) and (b) of Article 79(2) TFEU, regarding the conditions of entry, stay and freedom of movement of a third-country national for the purpose of work as an intra-corporate transferee in Member States other than the one that issued the intra-corporate transferee permit, which are to be considered as a lex specialis with respect to the Schengen acquis.  Parliament and the Council take note of the Commission's intention to examine whether any action needs to be taken in order to enhance legal certainty as regards the interaction between the two legal regimes, and in particular to examine the need for updating the Schengen Handbook.

COMMISSION STATEMENTS

1) Statement on the definition of specialist:

The Commission considers that the definition of "specialist" in point (f) of Article 3 of this Directive is in line with the equivalent definition (“person possessing uncommon knowledge”) used in the EU’s schedule of specific commitments of the WTO’s General Agreement on Trade in Services (GATS). The use of the word “specialised” instead of “uncommon” does not entail any change or extension of the GATS definition and is only adapted to the language now in use.

2) Statement on the bilateral agreements referred to in points (c) and (d) of Article 18(2):

The Commission will monitor the implementation of points (c) and (d) of Article 18(2) of this Directive in order to assess the possible impact of the bilateral agreements referred to in that Article on the treatment of intra-corporate transferees and on the application of Regulation (EU) No 1231/2010 and take, where necessary, any appropriate measure.

90

P7_TA-PROV(2014)0370

Clean Sky 2 Joint Undertaking *

European Parliament legislative resolution of 15 April 2014 on the proposal for a Council regulation on the Clean Sky 2 Joint Undertaking (COM(2013)0505 – C7-0255/2013 – 2013/0244(NLE))

(Consultation)

The European Parliament,

– having regard to the Commission proposal to the Council (COM(2013)0505),

– having regard to Article 187 and the first paragraph of 188 of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C7-0255/2013),

– having regard to Rule 55 of its Rules of Procedure,

– having regard to the report of the Committee on Industry, Research and Energy (A7-0083/2014),

1. Approves the Commission proposal as amended;

2. Calls on the Commission to alter its proposal accordingly, in accordance with Article 293(2) of the Treaty on the Functioning of the European Union;

3. Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;

4. Asks the Council to consult Parliament again if it intends to substantially amend the Commission proposal;

5. Instructs its President to forward its position to the Council and the Commission.

91

P7_TC1-NLE(2013)0244

Position of the European Parliament adopted on 15 April 2014 with a view to the adoption of Council regulation on the Clean Sky 2 Joint Undertaking

(Text with EEA relevance)

THE COUNCIL OF THE EUROPEAN UNION,

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

187 and the first paragraph of Article 188 thereof,

Having regard to the proposal from the European Commission,

Having regard to the opinion of the European Parliament1,

Having regard to the opinion of the Economic and Social Committee2,

Whereas:

(1) P ublic-private partnerships in the form of Joint Technology Initiatives were initially

provided for in Decision No 1982/2006/EC of the European Parliament and of the

Council of 18 December 2006 concerning the Seventh Framework Programme of the

European Community for research, technological development and demonstration

activities (2007-2013)3.

(2) Council Decision 2006/971/EC of 19 December 2006 concerning the Specific Programme

'Cooperation' implementing the Seventh Framework Programme of the European

Community for research, technological development and demonstration activities (2007-

2013)4 identified specific public-private partnerships to be supported, including a public-

private partnership in the specific area of the Clean Sky Joint Technology Initiative.

1 Position of the European Parliament of 15 April 2014.2 OJ … [ESC opinion]3 OJ L 412 30.12.2006, p. 1.4 OJ L 400 30.12.2006, p.86.

92

(3) Europe 2020 Strategy1 underscores the need to develop favourable conditions for

investment in knowledge and innovation so as to achieve smart, sustainable and inclusive

growth in the Union. Both the European Parliament and the Council have endorsed this

strategy.

(4) Regulation (EU) No 1291/2013 of the European Parliament and of the Council of 11

December 2013 establishing Horizon 2020 - the Framework Programme for Research and

Innovation (2014-2020)2 aims to achieve a greater impact on research and innovation by

combining Horizon 2020 Framework Programme and private-sector funds in public-

private partnerships in key areas where research and innovation can contribute to the

Union's wider competitiveness goals, leverage private investment, and help tackle

societal challenges. Those partnerships should be based on a long-term commitment,

including a balanced contribution from all partners, be accountable for the

achievement of their objectives and be aligned with the Union's strategic goals relating

to research, development and innovation. The governance and functioning of those

partnerships should be open, transparent, effective and efficient and give the

opportunity to a wide range of stakeholders active in their specific areas to participate.

Union involvement in these partnerships can take the form of financial contributions to

joint undertakings established on the basis of Article 187 of the Treaty under Decision No

1982/2006/EC.

(5) In accordance with Regulation (EU) No 1291/2013 and Council Decision 2013/743/EU

of 3 December 2013 establishing the Specific Programme implementing Horizon 2020

(2014-2020)3 further support should be provided to joint undertakings established under

Decision No 1982/2006/EC under the conditions specified in Council Decision

2013/743/EU.

1 COM(2010)2020 final.2 OJ L 347, 20.12.2013, p. 104 [H2020 FP]3 OJ L 347, 20.12.2013, p. 965 [H2020 SP]

93

(6) The Clean Sky Joint Undertaking set up by Regulation (EC) No 71/2008 of the Council of

20 December 2007 setting up the Clean Sky Joint Undertaking1 is fulfilling its objectives

of stimulating new research within the framework of a public-private partnership which

enables long-term cooperation to take place among European aeronautical stakeholders.

Small and medium-sized enterprises (SMEs) have participated very extensively in Clean

Sky, with approximately 40% of the budget for calls for proposals allocated to them. The

interim evaluation2 of the Clean Sky Joint Undertaking has shown that the Joint

Undertaking is successfully stimulating developments towards environmental targets. In

addition, it has been highly successful in attracting extensive and wide-ranging

participation by all Union key industries and a large number of SMEs. It has led to new

collaborations and to the participation of new organisations. Its research area should

therefore continue to be supported in order to achieve its objectives as set out in Article 2

of this Regulation.

(7) Continued support for the Clean Sky research programme should also take into account

the experience acquired from the operations of the Clean Sky Joint Undertaking including

the results of its interim evaluation and the stakeholders' recommendations3. It should be

implemented using a more fit-for-purpose structure and rules in order to enhance

efficiency and to ensure simplification. To this end, the Clean Sky 2 Joint Undertaking

should adopt financial rules specific to its needs in accordance with Article 209 of

Regulation (EU, Euratom) No 966/2012 of the European Parliament and the Council of

25 October 2012 on the financial rules applicable to the general budget of the Union4.

(8) The private members of the Clean Sky Joint Undertaking have expressed in writing their

agreement for the research activities in the area of the Clean Sky Joint Undertaking to be

pursued with a structure better adapted to the nature of a public-private partnership. It is

appropriate that the private members of the Clean Sky 2 Joint Undertaking accept the

Statutes set out in Annex I to this Regulation by means of a letter of endorsement.

1 OJ L 30 4.2.2008, p.1-202 SEC/2011/1072 final3 http://www.cleansky.eu/sites/default/files/news/csjuconsultationreview_final.pdf 4 OJ L 298, 26.10.2012, p.1.

94

(9) In order to achieve its objectives, the Clean Sky 2 Joint Undertaking should provide

financial support, mainly in the form of grants to members and grants to participants

following open and competitive calls for proposals.

(9a) Clean Sky 2 Joint Undertaking should operate in an open and transparent way

providing all relevant information in a timely manner to its appropriate bodies as well

as promoting its activities, including information and dissemination activities to the

wider public. The rules of procedure of the bodies of the Joint Undertaking should be

made publicly available.

(10) Contributions from the private members should not only be limited to the administrative

costs of the Clean Sky 2 Joint Undertaking and to the co-financing required to carry out

research and innovation actions supported by the Clean Sky 2 Joint Undertaking.

(11) Their contributions should also relate to additional activities previously declared and to

be undertaken by the private members as specified in an additional activities plan; in

order to get a proper overview of the leverage effect, those additional activities should

represent contributions to the broader Clean Sky Joint Technology Initiative.

(12) Participation in indirect actions funded by the Clean Sky 2 Joint Undertaking should

comply with Regulation (EU) No 1290/2013 of the European Parliament and of the

Council of 11 December 2013 laying down the rules for the participation and

dissemination in Horizon 2020 the Framework Programme for Research and Innovation

(2014-2020)1. The Clean Sky 2 Joint Undertaking should, moreover, ensure consistent

application of these rules based on relevant measures adopted by the Commission.

1 OJ L 347, 20.12.2013, p. 81 [H2020 RfP]

95

(12a) The Clean Sky 2 Joint Undertaking should also use electronic means managed by the

Commission to ensure openness, transparency and facilitate participation. Therefore,

the calls for proposals launched by the Clean Sky 2 Joint Undertaking should also be

published on the single portal for participants as well as through other Horizon 2020

electronic means of dissemination managed by the Commission. Moreover, relevant

data on inter alia proposals, applicants, grants and participants should be made

available by the Clean Sky 2 Joint Undertaking for inclusion in the Horizon 2020

reporting and dissemination electronic systems managed by the Commission, in an

appropriate format and with the periodicity corresponding to the Commission’s

reporting obligations.

(12b) The Clean Sky 2 Joint Undertaking should take into account the OECD definitions

regarding Technological Readiness Level (TRL) in the classification of technological

research, product development and demonstration activities.

(13) The Union financial contribution should be managed in accordance with the principle of

sound financial management and with the rules on indirect management set out in

Regulation (EU, Euratom) No 966/2012 and Commission delegated Regulation (EU) No

1268/2012 of 29 October 2012 on the rules of application of Regulation (EU, Euratom)

No 966/20121.

(14) For the purpose of simplification, administrative burdens should be reduced for all

parties. Double audits and disproportionate documentation and reporting should be

avoided. Audits of recipients of Union funds under this Regulation should be carried in

compliance with Regulation (EU) No 1291/2013 ▌.

(15) The financial interests of the Union and of the other members of the Clean Sky 2 Joint

Undertaking should be protected through proportionate measures throughout the

expenditure cycle, including the prevention, detection and investigation of irregularities,

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

administrative and financial penalties in accordance with Regulation (EU, Euratom) No

966/2012.

1 OJ L 362 31.12.2012, p.1

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(16) The Commission's internal auditor should exercise the same powers over the Clean Sky 2

Joint Undertaking as those exercised in respect of the Commission.

(17) In view of the specific nature and the current status of the Joint Undertakings, and in

order to ensure continuity with the 7th Framework Programme, the Joint Undertakings

should continue to be subject to a separate discharge. By way of derogation from

Articles 60(7) and 209 of Regulation (EU, Euratom) No 966/2012, discharge for the

implementation of the budget of the Clean Sky 2 Joint Undertaking should therefore be

given by the European Parliament on the recommendation of the Council. Hence, the

reporting requirements set out in Article 60(5) should not apply to the contribution of

the Union to the Clean Sky 2 Joint Undertaking but they should be aligned to the extent

possible to the ones foreseen for bodies under Article 208 of Regulation (EU, Euratom)

No 966/2012. The auditing of accounts and of the legality and regularity of the

underlying transactions should be undertaken by the Court of Auditors.

(18) To implement the Union financial support for large-scale actions phased over several

years, it is advisable to provide for the possibility to split multiannual budgetary

commitments by the Union and the Clean Sky 2 Joint Undertaking into annual

instalments. Commitments binding on the Union and the Clean Sky 2 Joint Undertaking

over the long term should make it possible to reduce the uncertainties connected with the

completion of such large-scale actions.

97

(19) In accordance with the principles of subsidiarity and proportionality as set out in Article 5

of the Treaty on the European Union, the objectives of the Clean Sky 2 Joint Undertaking

in strengthening industrial research and innovation across the Union cannot be

sufficiently achieved by the Member States and can therefore, by reason of avoiding

duplication, retaining critical mass and ensuring that public financing is used in an

optimal way, be better achieved by the Union; this Regulation confines itself to the

minimum required in order to achieve those objectives and does not go beyond what is

necessary for that purpose.

(19a) Horizon 2020 should contribute to the closing of the research and innovation divide

within the Union by promoting synergies with the European Structural and Investment

Funds (ESIF). Therefore the Clean Sky 2 Joint Undertaking should seek to develop

close interactions with the ESIF, which can specifically help to strengthen local,

regional and national research and innovation capabilities in the area of the Clean Sky

2 Joint Undertaking and underpin smart specialisation efforts.

(20) The Clean Sky Joint Undertaking was set up for a period up to 31 December 2017. The

Clean Sky 2 Joint Undertaking should provide continued support to the Clean Sky

research programme by implementing the remaining actions initiated under Regulation

(EC) No 71/2008 in accordance with Regulation (EC) No 71/2008. The transition from

the Clean Sky Joint Undertaking to the Clean Sky 2 Joint Undertaking should be aligned

and synchronized with the transition from the Seventh Framework Programme to the

Horizon 2020 Framework Programme to ensure optimal use of the funding available for

research. In the interest of legal certainty and clarity, Council Regulation (EC) No

71/2008 should therefore be repealed and transitional provisions should be set out.

98

(20a) With a view to the overall aim of Horizon 2020 to achieve greater simplification and

coherence, all calls for proposals under Clean Sky 2 should take into account the

duration of the Horizon 2020 Framework Programme.

(20b) Given the importance of continuous innovation for the competitiveness of the Union's

transport sector and the number of Joint Undertakings in this field, there should be an

analysis in due time, notably in view of the interim evaluation of Horizon 2020,

regarding the appropriateness of efforts in collaborative research in the field of

transport.

HAS ADOPTED THIS REGULATION:

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Article 1

Establishment

1. For the implementation of the Joint Technology Initiative in aeronautics, a joint

undertaking within the meaning of Article 187 of the Treaty (hereinafter 'Clean Sky 2

Joint Undertaking'), is established until 31 December 2024. In order to take into account

the duration of the Horizon 2020 Framework Programme, calls for proposals under

Clean Sky 2 shall be launched at the latest by 31 December 2020. In duly justified cases

calls for proposals may be launched until 31 December 2021.

2. The Clean Sky 2 Joint Undertaking shall replace and succeed the Clean Sky Joint

Undertaking as established by Council Regulation (EC) No 71/2008.

3. The Clean Sky 2 Joint Undertaking shall constitute a body entrusted with the

implementation of a public-private partnership referred to in Article 209 of Regulation

(EU, Euratom) No 966/2012 of the European Parliament and the Council1.

4. The Clean Sky 2 Joint Undertaking shall have legal personality. In each of the Member

States, it shall enjoy the most extensive legal capacity granted to legal persons under the

laws of those States. It may acquire or dispose of movable and immovable property and

may be party to legal proceedings.

5. The seat of the Clean Sky 2 Joint Undertaking shall be located in Brussels, Belgium.

6. The Statutes of the Clean Sky 2 Joint Undertaking are set out in Annex I.

1 OJ L 298, 26.10.2012, p. 1.

100

Article 2

Objectives

The Clean Sky 2 Joint Undertaking shall have the following objectives:

1. To contribute to the finalisation of research activities initiated under Regulation (EC) No

71/2008 and to the implementation of Regulation (EU) No 1291/2013 of the European

Parliament and of the Council of 11 December 2013 establishing the Horizon 2020

Framework Programme, and in particular the Smart, Green and Integrated Transport

Challenge under Part III - Societal Challenges ▌of Council Decision 2013/743/EU;

2. To contribute to improving the environmental impact of the aeronautical technologies,

including those relating to small aviation, as well as to developing a strong and globally

competitive aeronautical industry and supply chain in Europe.

This should be realised through speeding up the development of cleaner air transport

technologies for earliest possible deployment, and in particular the integration,

demonstration and validation of technologies capable of:

(a) increasing aircraft fuel efficiency thus reducing CO2 emissions by 20 to 30 %

compared to "state-of-the-art" aircraft entering into service as from 2014;

(b) reducing aircraft NOx and noise emissions by 20 to 30 % compared to "state-of-the-

art" aircraft entering into service as from 2014.

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Article 3

Union financial contribution

1. The maximum Union contribution, including EFTA appropriations, to the Clean Sky 2

Joint Undertaking, to cover administrative costs and operational costs, shall be EUR 1

755 million. The contribution shall be paid from the appropriations in the general budget

of the Union allocated to the Horizon 2020 Specific Programme implementing the

Horizon 2020 Framework Programme in accordance with Article 58(1)(c)(iv), Article 60

and Article 61 of Regulation (EU, Euratom) No 966/2012 for bodies referred to in Article

209 of that Regulation.

2. The arrangements for the Union financial contribution shall be set out in a delegation

agreement and annual transfer of funds agreements to be concluded between the

Commission, on behalf of the Union, and the Clean Sky 2 Joint Undertaking.

3. The delegation agreement referred to in paragraph 2 shall cover the aspects set out in

Article 58(3), Article 60 and Article 61 of Regulation (EU, Euratom) No 966/2012 and in

Article 40 of Commission delegated Regulation (EU) No 1268/2012, as well as inter alia

the following:

(a) the requirements for the Clean Sky 2 Joint Undertaking's contribution regarding the

relevant performance indicators referred to in Annex II to Council Decision No

2013/743/EU ▌;

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(b) the requirements for the Clean Sky 2 Joint Undertaking's contribution in view of the

monitoring referred to in Annex III to Council Decision No 2013/743/EU ▌;

(c) the specific performance indicators related to the functioning of the Clean Sky 2

Joint Undertaking;

(d) the arrangements regarding the provision of data necessary to ensure that the

Commission is able to meet its dissemination and reporting obligations including

on the single portal for participants as well as through other Horizon 2020

electronic means of dissemination managed by the Commission;

(da) provisions for the publication of calls for proposals of the Clean Sky 2 Joint

Undertaking also on the single portal for participants as well as through other

Horizon 2020 electronic means of dissemination managed by the Commission;

(e) the use of and changes to human resources, in particular recruitment by function

group, grade and category, the reclassification exercise and any changes to the

number of staff members.

Article 4

Contributions of members other than the Union

1. Each Leader and Core Partner of the Clean Sky 2 Joint Undertaking ▌shall make or

arrange for its affiliated entities to make its respective contribution. The total

contribution from all members shall be of at least EUR 2 193,75 million over the period

defined in Article 1.

2. The contribution referred to in paragraph 1 shall consist of the following:

(a) contributions to the Clean Sky 2 Joint Undertaking as laid down in clause 15(2) and

clause 15(3)(b) of the Statutes set out in Annex I.

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(b) in-kind contributions of at least EUR 965,25 million over the period defined in

Article 1 by the Leaders and Core Partners or their affiliated entities, consisting of

the costs incurred by them in implementing additional activities outside the work

plan of the Clean Sky 2 Joint Undertaking contributing to the objectives of the

Clean Sky Joint Technology Initiative. Other Union funding programmes may

support those costs in compliance with the applicable rules and procedures. In such

cases, Union financing shall not substitute for the in-kind contributions from the

Leaders and Core Partners or their affiliated entities.

The costs referred to in point (b) shall not be eligible for financial support by the

Clean Sky 2 Joint Undertaking. The corresponding activities shall be set out in an

additional activities plan that shall indicate the estimated value of those

contributions.

3. The Leaders and Core Partners of the Clean Sky 2 Joint Undertaking ▌shall declare

each year by 31 January to the Governing Board of the Clean Sky 2 Joint Undertaking on

the value of the contributions referred to in paragraph 2 made in each of the previous

financial years. The States Representative Group shall also be informed.

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4. For the purpose of valuing the contributions referred to in point (b) of paragraph 2 and

clause 15(3)(b) of the Statutes set out in Annex I, the costs shall be determined according

to the usual cost accounting practices of the entities concerned, to the applicable

accounting standards of the country where each entity is established, and to the applicable

International Accounting Standards / International Financial Reporting Standards. The

costs shall be certified by an independent external auditor appointed by the entity

concerned. The valuation method may be verified by the Clean Sky 2 Joint Undertaking

should there be any uncertainty arising from the certification. For the purposes of this

Regulation, the costs incurred in additional activities shall not be audited by the Clean

Sky 2 Joint Undertaking or any Union body.

5. The Commission may terminate, proportionally reduce or suspend the Union financial

contribution to the Clean Sky 2 Joint Undertaking or trigger the winding up procedure

referred to in clause 24(2) of the Statutes set out in Annex I if those members or their

affiliated entities do not contribute, contribute only partially or contribute late with regard

to the contributions referred to in paragraph 2. The Commission decision shall not

hinder the reimbursement of eligible costs already incurred by the Members by the time

of the notification of the decision to the Joint Undertaking.

Article 5

Financial rules

Without prejudice to Article 12, the Clean Sky 2 Joint Undertaking shall adopt its specific

financial rules in accordance with Article 209 of Regulation (EU, Euratom) No 966/2012 and

Regulation (EU) No … [Delegated Regulation on the model Financial Regulation for PPPs].

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Article 6

Staff

1. The Staff Regulations of Officials and the Conditions of Employment of Other Servants

of the European Union as laid down by Council Regulation (EEC, Euratom, ECSC) No

259/681 and the rules adopted by agreement between the institutions of the Union for

giving effect to those Staff Regulations and those Conditions of Employment of Other

Servants shall apply to the staff employed by the Clean Sky 2 Joint Undertaking.

2. The Governing Board shall exercise, with respect to the staff of the Clean Sky 2 Joint

Undertaking, the powers conferred by the Staff Regulations on the Appointing Authority

and by the Conditions of Employment of Other Servants on the Authority Empowered to

Conclude Contracts of Employment (hereinafter 'the appointing authority powers').

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 Article 6 of the

Conditions of Employment of Other Servants delegating the relevant appointing authority

powers to the Executive Director and defining the conditions under which this delegation

of powers can be suspended. The Executive Director is authorised to sub-delegate those

powers.

Where exceptional circumstances so require, the Governing Board may by way of a

decision temporarily suspend the delegation of the appointing authority powers to the

Executive Director and those sub-delegated by the latter and exercise them itself or

delegate them to one of its members or to a staff member of the Joint Undertaking other

than the Executive Director.

1 OJ 56, 4.3.1968, p.1

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3. The Governing Board shall adopt implementing rules to the Staff Regulations and the

Conditions of Employment of Other Servants in accordance with Article 110 of the Staff

Regulations.

4. The staff resources shall be determined by the staff establishment plan of the Clean Sky 2

Joint Undertaking indicating the number of temporary posts by function group and by

grade and the number of contract staff expressed in full-time equivalents, in line with its

annual budget.

5. The staff of the Clean Sky 2 Joint Undertaking shall consist of temporary staff and

contract staff.

6. All costs related to staff shall be borne by the Clean Sky 2 Joint Undertaking.

Article 7

Seconded national experts and trainees

1. The Clean Sky 2 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 information on staff as referred to in

Article 6(4) of this Regulation in line with the annual budget.

2. The Governing Board shall adopt a decision laying down rules on the secondment of

national experts to the Clean Sky 2 Joint Undertaking and on the use of trainees.

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Article 8

Privileges and immunities

The Protocol on the Privileges and Immunities of the Union shall apply to the Clean Sky 2 Joint

Undertaking and its staff.

Article 9

Liability of the Clean Sky 2 Joint Undertaking

1. The contractual liability of the Clean Sky 2 Joint Undertaking shall be governed by the

contractual provisions and by the law applicable to the agreement, decision or contract in

question.

2. In the event of non-contractual liability, the Clean Sky 2 Joint Undertaking shall make

good any damage caused by its staff in the performance of their duties, in accordance

with the general principles common to the laws of the Member States.

3. Any payment by the Clean Sky 2 Joint Undertaking in respect of the liability referred to

in paragraphs 1 and 2 and the costs and expenses incurred in that connection shall be

considered as expenditure of the Clean Sky 2 Joint Undertaking and shall be covered by

the resources of the Clean Sky 2 Joint Undertaking.

4. The Clean Sky 2 Joint Undertaking shall be solely responsible for meeting its obligations.

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Article 10

Jurisdiction of the Court of Justice and applicable law

1. The Court of Justice shall have jurisdiction:

(a) ▌

(b) pursuant to any arbitration clause contained in agreements, decisions or contracts

concluded by the Clean Sky 2 Joint Undertaking;

(c) in disputes relating to compensation for damage caused by the staff of the Clean

Sky 2 Joint Undertaking in the performance of their duties;

(d) in any dispute between the Clean Sky 2 Joint Undertaking and its staff within the

limits and under the conditions laid down in the Staff Regulations of Officials and

the Conditions of Employment of Other Servants of the European Union.

2. Regarding any matter not covered by this Regulation or by other acts of Union law, the

law of the State where the seat of the Clean Sky 2 Joint Undertaking is located shall

apply.

Article 11

Evaluation

1. By 30 June 2017 the Commission shall carry out, with the assistance of independent

experts, an interim evaluation of the Clean Sky 2 Joint Undertaking. The Commission

shall prepare a report on that evaluation which includes conclusions of the evaluation

and ▌observations by the Commission. The Commission shall send that report to the

European Parliament and to the Council by 31 December 2017. The results of the interim

evaluation of Clean Sky 2 shall be taken into account in the in-depth assessment and in

the interim evaluation referred to in Article 32 of Regulation (EU) No 1291/2013.

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2. On the basis of the conclusions of the interim evaluation referred to in paragraph 1, the

Commission may act in accordance with Article 4(5) or take any other appropriate

actions.

3. Within six months of the winding up of the Clean Sky 2 Joint Undertaking, but in any

event no later than two years after the triggering of the winding-up procedure referred to

in clause 24 of the Statutes set out in Annex I, the Commission shall conduct a final

evaluation of the Clean Sky 2 Joint Undertaking. The results of that final evaluation shall

be sent to the European Parliament and to the Council.

Article 12

Discharge

By way of derogation from Articles 60(7) and 209 of Regulation No 966/2012, the discharge

for the ▌implementation of the budget of the Clean Sky 2 Joint Undertaking shall be ▌given by

the European Parliament, upon recommendation of the Council ▌in accordance with the

procedure provided for in the financial rules of the Clean Sky 2 Joint Undertaking.

▌

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Article 13

Ex-post audits

1. Ex-post audits of expenditure on indirect actions shall be carried out by the Clean Sky 2

Joint Undertaking in accordance with Article 29 of Regulation (EU) No 1291/2013 as part

of the Horizon 2020 Framework Programme indirect actions.

2. The Commission may decide to carry out the audits referred to in paragraph 1. It shall do

so in accordance with the applicable rules, in particular Regulation (EU, Euratom) No

966/2012, Regulation (EU) No 1291/2013 and Regulation (EU) No 1290/2013.

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Article 14

Protection of the financial interests of the members

1. ▌ The Clean Sky 2 Joint Undertaking shall grant Commission staff and other persons

authorised by the Commission or the Joint Undertaking, as well as the Court of

Auditors, access to its sites and premises and to all the information, including information

in electronic format, needed in order to conduct their audits.

2. The European Anti-fraud Office (OLAF) may carry out investigations, including on-the-

spot checks and inspections, in accordance with the provisions and procedures laid down

in Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the

Council1 and Council Regulation (Euratom, EC) No 2185/96 of 11 November 19962 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 or

decision or a contract funded under this Regulation.

3. Without prejudice to paragraphs 1 and 2, contracts, agreements and decisions, resulting

from the implementation of this Regulation shall contain provisions expressly

empowering the Commission, the Clean Sky 2 Joint Undertaking, the Court of Auditors

and OLAF to conduct such audits and investigations, according to their respective

competences.

4. The Clean Sky 2 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 Clean Sky 2 Joint Undertaking shall accede to the Interinstitutional Agreement of 25

May 1999 between the European Parliament, the Council and the Commission concerning

internal investigations by OLAF3. The Clean Sky 2 Joint Undertaking shall adopt the

necessary measures needed to facilitate internal investigations conducted by OLAF.

1 OJ L 248, 18.9.2013, p.1.2 OJ L 292, 15.11.1996, p. 2-5.3 OJ L 136, 31.5.1999, p. 15.

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Article 15

Confidentiality

Without prejudice to Article 16, the Clean Sky 2 Joint Undertaking shall ensure the protection

of sensitive information whose disclosure could damage the interests of its members or of

participants in the activities of the Clean Sky 2 Joint Undertaking.

Article 16

Transparency

1. Regulation (EC) No 1049/2001 of the European Parliament and of the Council regarding

public access to European Parliament, Council and Commission documents1 shall apply

to documents held by the Clean Sky 2 Joint Undertaking.

2. The Governing Board may adopt practical arrangements for implementing Regulation

(EC) No 1049/2001.

3. Without prejudice to Article 10, decisions taken by the Clean Sky 2 Joint Undertaking

pursuant to Article 8 of Regulation (EC) No 1049/2001 may form the subject of a

complaint to the Ombudsman under the conditions laid down in Article 228 of the Treaty.

4. The Clean Sky 2 Joint Undertaking shall adopt practical arrangements for implementing

Regulation (EC) No 1367/2006 of the European Parliament and of the Council of 6

September 2006 on the application of the provisions of the Aarhus Convention on Access

to Information, Public Participation in Decision-making and Access to Justice in

Environmental Matters to Community institutions and bodies2.

1 OJ L 145, 31.5.2001, p. 43.2 OJ L 264, 25.9.2006, p. 13-19.

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Article 17

Rules for participation and dissemination

Regulation (EU) No 1290/2013 shall apply to the actions funded by the Clean Sky 2 Joint

Undertaking. In accordance with that Regulation, the Clean Sky 2 Joint Undertaking shall be

considered a funding body and shall provide financial support to indirect actions as set out in

clause 2 of the Statutes set out in Annex I.

Article 18

Support from the host State

An administrative agreement may be concluded between the Clean Sky 2 Joint Undertaking and

the State where its seat is located concerning privileges and immunities and other support to be

provided by that State to the Clean Sky 2 Joint Undertaking.

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Article 19

Repeal and transitional provisions

1. Regulation (EC) No 71/2008 is repealed ▌.

2. Without prejudice to paragraph 1, actions initiated under Regulation (EC) No 71/2008,

and financial obligations related to those actions shall continue to be governed by that

Regulation until their completion.

Actions arising from calls for proposals provided for in Annual Implementation Plans

adopted under Regulation (EC) No 71/2008 shall also be regarded as actions initiated

under that Regulation.

The interim evaluation referred to in Article 11(1) shall include a final evaluation of the

Clean Sky Joint Undertaking operations under Regulation (EC) No 71/2008.

3. This Regulation shall not affect the rights and obligations of staff engaged under

Regulation (EC) No 71/2008.

The employment contracts of staff referred to in the first subparagraph may be renewed

under this Regulation in accordance with the Staff Regulations.

In particular, the Executive Director appointed under Regulation (EC) No 71/2008 shall,

for the remaining period of term of office, be assigned to the functions of Executive

Director as provided for in this Regulation with effect from the date of entry into force of

this Regulation. The other conditions of contract shall remain unchanged.

4. Unless otherwise agreed between members pursuant to Regulation (EC) No 71/2008, all

rights and obligations including assets, debts or liabilities of the members pursuant to that

Regulation are transferred to the members pursuant to this Regulation.

5. Any unused appropriations under Regulation (EC) No 71/2008 shall be transferred to the

Clean Sky 2 Joint Undertaking.

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Article 20

Entry into force

This Regulation shall enter into force on the twentieth day following that of its publication in

the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at …,

For the Council

The President

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ANNEX I

STATUTES OF THE CLEAN SKY 2 JOINT UNDERTAKING

1- Definitions

(a) 'Associate' means a legal entity that has been selected under Regulation (EC) No 71/2008

and has accepted the present Statutes by signing a letter of endorsement and whose

membership shall be terminated as soon as the actions initiated under Regulation (EC) No

71/2008 in which it is involved end, and at the latest on 31 December 2017;

(b) 'Core Partner' means a legal entity participating in an ITD or IADP or in Transverse

Activities that has been selected following a call as set out in clause 4(2) and has accepted

the present Statutes by signing a letter of endorsement;

(c) 'IADP' means one of the Innovative Aircraft Demonstration Platforms identified in Clause

11;

(d) 'ITD' means an Integrated Technology Demonstrator identified in Clause 11;

(e) 'Leader' means a co-leader of one of the ITDs or IADPs or Transverse Activities;

(f) 'Participating affiliate' means an affiliated entity as defined in Article 2(1) of Regulation

(EU) No 1290/2013 performing activities of the relevant ▌Leader, Associate or Core

Partner in accordance with the terms and conditions set out in the relevant grant

agreements or decisions;

(g) 'Transverse Activities' (TAs) means actions with relevance across several ITDs and/or

IADPs and requiring coordination and management across the ITDs and/or IADPs for the

optimal delivery of the overall objectives of Clean Sky;

(h) 'TE' means Technology Evaluator.

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2 - Tasks

The Clean Sky 2 Joint Undertaking shall carry out the following tasks:

(a) supporting financially research and innovation indirect actions mainly in the form of

grants;

(b) bringing together a range of ITDs and IADPs supported by Transverse Activities, with the

emphasis on innovative technologies and development of full-scale demonstrators;

(c) focusing efforts within ITDs, IADPs and Transverse Activities on key deliverables that

can help meet the Union's environmental and competitiveness goals, as also outlined in

the Commission's White Paper from 20111;

(d) enhancing the technology verification process in order to identify and remove obstacles to

future market penetration;

(e) pooling user requirements to guide investment in research and development towards

operational and marketable solutions;

(f) ensuring the provision of procurement contracts, where appropriate, through calls for

tender;

(g) mobilising the public and private-sector funds needed;

(h) liaising with national and international activities in the Clean Sky 2 Joint Undertaking

technical domain, in particular with the SESAR Joint Undertaking2;

(i) stimulating the involvement of SMEs in its activities, in line with the objectives of the

Seventh Framework Programme and of Horizon 2020;

(j) developing close cooperation and ensuring coordination with related European (in

particular under the Framework Programmes), national and transnational activities;

1 COM(2011) 144 final: ‘Roadmap to a Single European Transport Area – Towards a competitive and resource efficient transport system’.

2 OJ L 64, 2.3.2007, p. 1.

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(k) information, communication, exploitation and dissemination activities by applying

mutatis mutandis the provisions of Article 28 of Regulation (EU) No 1291/2013,

including making the detailed information on results from calls for proposals available

and accessible in a common H2020 e-database.

(ka) liaising with a broad range of stakeholders including research organisations and

universities;

(l) any other task needed to achieve the objectives set out in Article 2 of this Regulation.

3 - Members

1. The members of the Clean Sky 2 Joint Undertaking shall be the following:

(a) the Union, represented by the Commission,

(b) upon acceptance of these Statutes by means of a letter of endorsement, the Leaders

and the Associates as listed in Annex II to this Regulation, and the Core Partners to

be selected in accordance with clause 4(2).

2. The members other than the Union shall be referred to as the 'private members' of the

Clean Sky 2 Joint Undertaking.

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4 - Changes to membership

1. Provided that it contributes to the funding referred to in clause 15 to achieve the

objectives of the Clean Sky 2 Joint Undertaking set out in Article 2 of this Regulation and

accepts the Statutes of the Clean Sky 2 Joint Undertaking, any legal entity established in a

Member State or in a country associated to the Horizon 2020 Framework Programme may

apply to become a Core Partner of the Clean Sky 2 Joint Undertaking in accordance with

paragraph 2.

2. The Core Partners of the Clean Sky 2 Joint Undertaking and their relevant affiliates shall

be selected through an open, non-discriminatory and competitive call and subject to an

independent evaluation. Calls shall be driven by the need for key capabilities to

implement the programme. They shall be published on the Clean Sky website and

communicated through the States Representatives Group and other channels in order to

ensure the widest possible participation.

3. Any member may terminate its membership to the Clean Sky 2 Joint Undertaking. The

termination shall become effective and irrevocable six months after notification to the

other members. As of then, the former member shall be discharged from any obligations

other than those approved or incurred by the Clean Sky 2 Joint Undertaking prior to

terminating the membership.

4. Membership of the Clean Sky 2 Joint Undertaking may not be transferred to a third party

without prior agreement of the Governing Board.

5. The Clean Sky 2 Joint Undertaking shall publish on its website immediately upon any

change to membership pursuant to this clause, an updated list of members of the Clean

Sky 2 Joint Undertaking together with the date when such change takes effect.

6. The membership of Associates shall be automatically terminated as soon as the actions

initiated under Regulation (EC) No 71/2008 in which they are involved end and at the

latest on 31 December 2017.

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5 - Organisation of the Clean Sky 2 Joint Undertaking

1. The bodies of the Clean Sky 2 Joint Undertaking shall be:

(a) the Governing Board;

(b) the Executive Director;

(c) the Steering Committees;

(d) the Scientific Committee;

(e) the States Representatives Group.

2. The Scientific Committee and the States Representatives Group shall be advisory bodies

to the Clean Sky 2 Joint Undertaking.

6 – Composition of the Governing Board

The Governing Board shall be composed of the following:

(a) one representative of the Commission;

(b) one representative of each Leader;

(ca) one representative of Core Partners per ITD;

(c) one representative of Associates per ITD;

(d) one representative of Core Partners per IADP.

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7 – Functioning of the Governing Board

1. The Commission representative shall hold 50 % of the voting rights. The vote of the

Commission shall be indivisible. Each other representative shall hold an equal number of

votes. The representatives shall use their best endeavours to achieve consensus. Failing

consensus, the Governing Board shall take decisions by a majority of at least 80 % of all

votes, including the votes of those who are not in attendance.

2. The Governing Board shall elect its chairperson for a period of two years.

3. The Governing Board shall hold its ordinary meetings at least twice a year. It may hold

extraordinary meetings at the request of the Commission or of a majority of the

representatives of the private members, or at the request of the chairperson. Meetings of

the Governing Board shall be convened by its chairperson and shall usually take place at

the seat of the Clean Sky 2 Joint Undertaking.

The Executive Director shall have the right to take part in the deliberations, but shall have

no voting rights.

The chairperson or the vice-chair person of the States Representatives Group shall have

the right to attend meetings of the Governing Board as an observer and take part in its

deliberations, but shall have no voting rights.

The chairperson of the Scientific Committee shall have the right, whenever issues

falling within its tasks are discussed, to attend meetings of the Governing Board as an

observer and take part in its deliberations, but shall have no voting rights.

The Governing Board may invite other persons to attend its meetings as observers, in

particular representatives of regional authorities of the Union.

The representatives of the members shall not be personally liable for actions they have

taken in their capacity as representatives on the Governing Board.

The Governing Board shall adopt its own rules of procedure.

The Governing Board shall adopt transitional measures as appropriate.

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8 – Tasks of the Governing Board

1. The Governing Board shall have overall responsibility for the strategic orientation and the

operations of the Clean Sky 2 Joint Undertaking and shall supervise the implementation

of its activities.

1a. The Commission, within its role in the Governing Board, shall seek to ensure

coordination between the activities of the Clean Sky 2 Joint Undertaking and the

relevant activities of Horizon 2020 with a view to promoting synergies when identifying

priorities covered by collaborative research.

2. The Governing Board shall in particular carry out the following tasks:

(a) assess, accept or reject applications for new membership in accordance with clause

4;

(b) decide on the termination of the membership in the Clean Sky 2 Joint Undertaking

of any member that does not fulfil its obligations;

(c) adopt the financial rules of the Clean Sky 2 Joint Undertaking in accordance with

Article 5 of this Regulation;

(d) adopt the annual budget of the Clean Sky 2 Joint Undertaking, including the staff

establishment plan indicating the number of temporary posts by function group and

by grade and the number of contract staff and seconded national experts expressed

in full-time equivalents;

(e) exercise the appointing authority powers with respect to the staff, in accordance

with Article 6(2) of this Regulation;

(f) appoint, dismiss, extend the term of office of, provide guidance to and monitor the

performance of the Executive Director;

(g) approve the organisational structure of the Programme Office referred to in clause

10(5), based on a recommendation by the Executive Director;

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(h) adopt the work plan and the corresponding expenditure estimates, as proposed by

the Executive Director after having consulted the Scientific Committee and the

States Representatives Group;

(i) approve the additional activities plan referred to in Article 4(2)(b) of this Regulation

on the basis of a proposal from the private members and after having consulted,

where appropriate, an ad hoc advisory group;

(ia) receive and provide opinion on the declaration referred to in the Article 4.3.

▌

(k) approve the annual activity report, including the corresponding expenditure;

(l) arrange, as appropriate, for the establishment of an internal audit capability of the

Clean Sky 2 Joint Undertaking;

(m) ensure procedures for open and transparent calls and approve the calls as well as,

where appropriate, the related rules for submission, evaluation, selection, award and

review procedures;

(n) approve the list of proposals and tenders selected for funding on the basis of the

ranking list produced by a panel of independent experts;

(o) establish the Clean Sky 2 Joint Undertaking's communications policy upon

recommendation by the Executive Director;

(p) where appropriate, establish implementing rules in line with Article 6(3) of this

Regulation;

(q) where appropriate, establish rules on the secondment of national experts to the

Clean Sky 2 Joint Undertaking and on the use of trainees in line with Article 7 of

this Regulation;

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(r) where appropriate, set up advisory groups in addition to the bodies of the Clean Sky

2 Joint Undertaking;

(s) where appropriate, submit to the Commission any request to amend this Regulation

proposed by any member of the Clean Sky 2 Joint Undertaking.

(t) be responsible for any task that is not specifically allocated to one of the bodies of

the Clean Sky 2 Joint Undertaking which it may assign to one of those bodies.

9 – Appointment, dismissal or extension of the term of office of the Executive

Director

1. The Executive Director shall be appointed by the Governing Board from a list of

candidates proposed by the Commission following an open and transparent selection

procedure. The Commission shall associate the representation from the other members of

the Clean Sky 2 Joint Undertaking in the selection procedure as appropriate.

In particular, an appropriate representation from the other members of the Clean Sky 2

Joint Undertaking shall be ensured at the pre-selection stage of the selection procedure.

For that purpose, the private members shall appoint by common accord a representative

as well as an observer on behalf of the Governing Board.

2. The Executive Director is a member of staff and shall be employed as a temporary agent

of the Clean Sky 2 Joint Undertaking under point (a) of Article 2 of the Conditions of

Employment of Other Servants of the Union.

For the purpose of concluding the contract with the Executive Director, the Clean Sky 2

Joint Undertaking shall be represented by the chairperson of the Governing Board.

3. The term of office of the Executive Director shall be three years. By the end of that

period, the Commission associating the private members as appropriate shall undertake an

assessment of the performance of the Executive Director and the Clean Sky 2 Joint

Undertaking's future tasks and challenges.

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4. The Governing Board, acting on a proposal from the Commission which takes into

account the assessment referred to in paragraph 3, may extend the term of office of the

Executive Director once, for no more than five years.

5. An Executive Director whose term of office has been extended may not participate in

another selection procedure for the same post at the end of the overall period.

6. The Executive Director may be dismissed only upon a decision of the Governing Board

acting on a proposal from the Commission associating the private members as

appropriate.

10 – Tasks of the Executive Director

1. The Executive Director shall be the chief executive responsible for the day-to-day

management of the Clean Sky 2 Joint Undertaking in accordance with the decisions of the

Governing Board.

2. The Executive Director shall be the legal representative of the Clean Sky 2 Joint

Undertaking. He/she shall be accountable to the Governing Board.

3. The Executive Director shall implement the budget of the Clean Sky 2 Joint Undertaking.

4. The Executive Director shall in particular carry out the following tasks in an independent

manner:

(a) prepare and submit for adoption to the Governing Board the draft annual budget,

including the corresponding staff establishment plan indicating the number of

temporary posts in each grade and function group and the number of contract staff

and seconded national experts expressed in full-time equivalents;

(b) prepare and submit for adoption to the Governing Board the work plan and the

corresponding expenditure estimates;

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(c) submit for approval to the Governing Board the annual accounts;

(d) prepare and submit for approval to the Governing Board the annual activity report,

including the corresponding expenditure;

(e) handle second-instance settlement of disputes within ITDs or IADPs or TAs;

(f) handle first-instance settlement of disputes across ITDs or IADPs or TAs;

(g) oversee the calls for proposals based on the content and topics proposed by the

relevant ITD/IADP Steering Committee and in line with the programme objectives

and submit for approval to the Governing Board the list of actions selected for

funding;

(ga) inform the States Representatives Group and the Scientific Committee regularly

of all matters relevant to their advisory role;

(h) sign individual agreements or decisions;

(i) sign procurement contracts;

(j) implement the Clean Sky 2 Joint Undertaking's communications policy;

(k) organise, direct and supervise the operations and the staff of the Clean Sky 2 Joint

Undertaking within the constraints of the delegation by the Governing Board as

provided for in Article 6(2) of this Regulation;

(l) establish and ensure the functioning of an effective and efficient internal control

system and report any significant change to it to the Governing Board;

(m) ensure that risk assessment and risk management are performed;

(n) take any other measures needed to assess the progress made by the Clean Sky 2

Joint Undertaking towards achieving its objectives;

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(o) perform any other tasks entrusted or delegated to the Executive Director by the

Governing Board;

(p) ensure the coordination between the different ITDs, IADPs and TAs and take

appropriate action to manage interfaces, avoid undue overlaps between projects and

favour synergies across ITD, IADP and TAs;

(q) propose to the Governing Board adaptations of the technical content and budget

allocations between ITDs, IADPs and TAs;

(r) ensure effective communication between the Technology Evaluator, IADPs and

ITDs and ensure that deadlines are met for the transmission of necessary data to the

Technology Evaluator;

(s) chair the governing body of the Technology Evaluator and ensure that all

appropriate measures are taken to enable the Technology Evaluator to perform its

tasks as described in clause 12;

(t) ensure that the planned objectives and the schedules are met, coordinate and follow-

up the ITD and IADP activities and propose any appropriate evolution of the

objectives and related schedule;

(u) monitor the progress made by the ITDs and IADPs towards achieving the

objectives, based in particular on the assessments of the Technology Evaluator;

(v) approve any budget transfers below 10% of the annual budget allocations between

and within ITDs/IADPs;

(w) organise the information exchange with the States Representatives Group (SRG).

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5. The Executive Director shall set up a Programme Office for the execution, under his/her

responsibility, of all support tasks arising from this Regulation. The Programme Office

shall be composed of the staff of the Clean Sky 2 Joint Undertaking and shall, in

particular, carry out the following tasks:

(a) provide support in establishing and managing an appropriate accounting system in

accordance with the financial rules of the Clean Sky 2 Joint Undertaking;

(b) manage the calls as provided for in the work plan and administer the agreements or

decisions, including their coordination;

(c) provide the members and the other bodies of the Clean Sky 2 Joint Undertaking all

information and support needed for them to perform their duties and responding to

their specific requests;

(d) act as the secretariat of the bodies of the Clean Sky 2 Joint Undertaking and provide

support to any advisory group set up by the Governing Board.

11 - Steering Committees

1. Steering Committees shall be established for the following ITDs and IADPs:

(a) Large Passenger Aircraft IADP,

(b) Regional Aircraft IADP,

(c) Rotorcraft IADP,

(d) Airframe ITD,

(e) Engines ITD,

(f) Systems ITD.

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The Steering Committees for the following ITDs of the Clean Sky Joint

Undertaking shall continue to exist and function under their existing rules (as

regards their composition, meetings, tasks and rules of procedure) as defined under

Regulation (EC) No 71/2008 until actions arising under Regulation (EC) No

71/2008 come to an end:

(g) Smart Fixed-Wing Aircraft ITD,

(h) Green Regional Aircraft ITD,

(i) Green Rotorcraft ITD,

(j) Systems for Green Operations ITD,

(k) Sustainable and Green Engines ITD,

(l) Eco-Design ITD.

2. Composition:

Each Steering Committee shall be composed of:

(a) a chairperson — a senior representative of the ITD or IADP Leader(s);

(b) a representative of each Core Partner of the ITD or IADP; representatives of the

leaders of other ITDs or IADPs may also participate;

(c) one or more representatives of the programme office, as designated by the

Executive Director;

3. Meetings

Each Steering Committee shall meet at least every three months. Extraordinary meetings

shall be convened at the request of the chairperson or of the Executive Director.

A representative of the Commission may participate, as an observer.

Other members with an interest in the results of the ITD or IADP may be invited to

attend.

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4. Tasks:

Each Steering Committee shall be responsible for:

(a) guiding and monitoring the technical functions of its ITD or IADP and taking

decisions on behalf of the Clean Sky 2 Joint Undertaking on technical matters

specific to the relevant ITD or IADP in line with the grant agreements or decisions;

(b) reporting to the Executive Director on the basis of reporting indicators to be defined

by the Clean Sky 2 Joint Undertaking;

(c) providing all necessary data to the Technology Evaluator in a format that shall be

agreed with the Technology Evaluator on the basis of the terms and conditions of

the mandate given by the Governing Board to the Technology Evaluator for its

assessment;

(d) establishing the detailed annual implementation plans for the ITD/IADP in line with

the work plan;

(e) proposing the contents of the calls for proposals;

(f) advising on the contents of the calls for tenders to be launched by the Joint

Undertaking in conjunction and cooperation with the members concerned;

(g) establishing the order of rotation of Core Partners' representatives in the Governing

Board. The decisions on this matter shall be taken by the representatives of the Core

Partners only. The representatives of the Leaders shall not have the right to vote;

(h) handling disputes within the ITD/IADP;

(i) proposing to the Executive Director changes of the budget allocation within its

ITD/IADP.

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5. Rules:

Each Steering Committee shall adopt its rules of procedure, based on a model common to all

Steering Committees.

12 - Technology Evaluator and other Transverse Activities

1. An independent Technology Evaluator, as a Transverse Activity, shall exist for the entire

duration of the Clean Sky 2 Joint Undertaking.

The Technology Evaluator shall have the following tasks:

(a) monitoring and assessing the environmental and societal impact of the technological

results arising from individual ITDs and IADPs across all Clean Sky activities,

specifically quantifying the expected improvements on the overall noise,

greenhouse gas and air pollutants emissions from the aviation sector in future

scenarios in comparison to baseline scenarios;

(b) providing feedback to ITDs and IADPs in order to enable the optimisation of their

performance against their respective goals and objectives;

(c) providing input, through the Executive Director to the Governing Board on

environmental and societal impacts across Clean Sky activities to enable the

Governing Board to take all actions necessary to optimise benefits across all Clean

Sky programmes, against the respective programmes’ high-level goals and

objectives;

(d) providing regular information, through the members, the Executive Director and

other bodies of the Joint Undertaking, on the impact of the technological results of

the ITDs and IADPs.

2. The governing body of the Technology Evaluator shall be chaired by the Executive

Director. Its composition and rules of procedure shall be adopted by the Governing

Board, based on a proposal from the Executive Director.

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3. Eco-Design and Small Air Transport Transverse Activities shall each have a

Coordination Committee that shall be in charge of the coordination of their activities in

cooperation with ITDs and IADPs. The Coordination Committee shall be chaired by

the respective Leader(s). Its composition and rules of procedure shall be adopted by the

Governing Board, based on a proposal from the Executive Director.

13 - Scientific Committee

1. The Scientific Committee shall consist of no more than 12 members. It shall elect a

chairperson from amongst its members.

2. The members shall reflect a balanced representation of world-wide recognised experts

from academia, industry and regulatory bodies. Collectively, the Scientific Committee

members shall have the necessary scientific competencies and expertise covering the

technical domain needed to make science-based recommendations to the Clean Sky 2

Joint Undertaking.

3. The Governing Board shall set the criteria and selection process for the composition of

the Scientific Committee and appoint its members. The Governing Board shall take into

consideration the potential candidates proposed by States Representatives Group.

4. The Scientific Committee shall carry out the following tasks:

(a) advise on the scientific priorities to be addressed in the work plans;

(b) advise on the scientific achievements described in the annual activity report.

5. The Scientific Committee shall meet at least twice a year. The meetings shall be convened

by its chairperson.

6. The Scientific Committee may, with the agreement of the chairperson, invite other

persons to attend its meetings.

7. The Scientific Committee shall adopt its own rules of procedure.

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14 - States Representatives Group

1. The States Representatives Group shall consist of one representative of each Member

State and of each country associated to the Horizon 2020 Framework Programme. It shall

elect a chairperson and a vice-chair person among its members.

2. The States Representatives Group shall meet at least twice a year. The meetings shall be

convened by its chairperson. The Executive Director and the chairperson of the

Governing Board or their representatives shall attend the meetings.

The chairperson of the States Representatives Group may invite other persons to attend its

meetings as observers, in particular representatives of regional authorities of the Union

and representatives of SME associations.

3. The States Representatives Group shall be consulted and, in particular, review

information and provide opinions on the following matters:

(a) progress made in the programme of the Clean Sky 2 Joint Undertaking and towards

achievement of its targets;

(b) updates of strategic orientation;

(c) links to the Horizon 2020 Framework Programme;

(d) work plans;

(e) involvement of SMEs.

4. The States Representatives Group shall also provide information to and act as an interface

with the Clean Sky 2 Joint Undertaking on the following matters:

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(a) the status of relevant national or regional research and innovation programmes and

identification of potential areas of cooperation, including deployment of

aeronautical technologies;

(b) specific measures taken at national or regional level with regard to dissemination

events, dedicated technical workshops and communication activities.

5. The States Representatives Group may issue, on its own initiative, recommendations or

proposals to the Governing Board on technical, managerial and financial matters as well

as on annual plans, in particular when those matters affect national or regional interests.

The Governing Board shall inform without undue delay the States Representatives

Group of the follow-up it has given to such recommendations or proposals, including the

reasoning if they are not followed up.

5a. The States Representatives Group shall receive information on a regular basis, among

others  on the participation in actions funded by the Clean Sky 2 Joint Undertaking, on

the outcome of each call and project implementation, on synergies with other relevant

Union programmes, on the execution of the Clean Sky 2 budget.

6. The States Representatives Group shall adopt its own rules of procedure.

15 - Sources of financing

1. The Clean Sky 2 Joint Undertaking shall be jointly funded by the Union and the private

members and their affiliated entities through financial contributions paid in instalments

and contributions consisting of the costs incurred by them in implementing indirect

actions that are not reimbursed by the Clean Sky 2 Joint Undertaking.

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2. The administrative costs of the Clean Sky 2 Joint Undertaking shall not exceed EUR 78

million and shall be covered through financial contributions divided equally on an annual

basis between the Union and the private members of the Clean Sky 2 Joint Undertaking.

If part of the contribution for administrative costs is not used, it may be made available to

cover the operational costs of the Clean Sky 2 Joint Undertaking.

3. The operational costs of the Clean Sky 2 Joint Undertaking shall be covered through:

(a) a financial contribution by the Union;

(b) in-kind contributions by Leaders and Core Partners and their affiliated entities

consisting of the costs incurred by them in implementing indirect actions less the

contribution of the Clean Sky 2 Joint Undertaking and any other Union contribution

to those costs.

4. The resources of the Clean Sky 2 Joint Undertaking entered to its budget shall be

composed of the following contributions:

(a) members' financial contributions to the administrative costs;

(b) Union financial contribution to the operational costs;

(c) any revenue generated by the Clean Sky 2 Joint Undertaking;

(d) any other financial contributions, resources and revenues.

Any interest yielded by the contributions paid to the Clean Sky 2 Joint Undertaking by its

members shall be considered to be its revenue.

5. All resources of the Clean Sky 2 Joint Undertaking and its activities shall be devoted to

the objectives set out in Article 2 of this Regulation.

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6. The Clean Sky 2 Joint Undertaking shall own all assets generated by it or transferred to it

for the fulfilment of its objectives set out in Article 2 of this Regulation.

7. Except when the Clean Sky 2 Joint Undertaking is wound up pursuant to clause 24, any

excess revenue over expenditure shall not be paid to the members of the Clean Sky 2

Joint Undertaking.

16 - Allocation of the Union contribution

1. The Union contribution dedicated to operational costs shall be allocated as follows:

(a) up to 40% of the total Union funding, shall be allocated to Leaders and their

participating affiliates.

(b) up to 30% of the total Union funding, shall be allocated to Core Partners and their

participating affiliates.

(c) at least 30% of the total Union funding, shall be allocated by way of competitive

calls for proposals and calls for tenders. Particular attention shall be paid to

ensuring adequate participation of SMEs.

2. Funding under paragraph 1 shall be allocated following evaluation of proposals by

independent experts.

3. An indicative breakdown of the allocation of the Union contribution to the

ITDs/IADPs/TAs is provided in Annex III to this Regulation.

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17 - Financial commitments

1. Financial commitments of the Clean Sky 2 Joint Undertaking shall not exceed the amount

of financial resources available or committed to its budget by its members.

2. Budgetary commitments may be divided into annual instalments. Each year the

Commission and the Clean Sky 2 Joint Undertaking shall commit the annual instalments

taking into account the progress of the actions receiving financial support, the estimated

needs and the budget available.

The indicative timetable for the commitment of the individual annual instalments shall be

communicated to the concerned recipients of Union funds.

18 - Financial year

The financial year shall run from 1 January to 31 December.

19 - Operational and financial planning

1. The Executive Director shall submit for adoption to the Governing Board a draft

multiannual or annual work plan which shall include a detailed plan of the research and

innovation activities, the administrative activities and the corresponding expenditure

estimates. The draft work plan shall also include the estimated value of the contributions

to be made in accordance with clause 15(3)(b).

2. The work plan shall be adopted by the end of the year prior to its implementation. The

work plan shall be made publicly available.

3. The Executive Director shall prepare the draft annual budget for the following year and

submit it to the Governing Board for adoption.

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4. The annual budget for a particular year shall be adopted by the Governing Board by the

end of the previous year.

5. The annual budget shall be adapted in order to take into account the amount of the Union

contribution as set out in the Union budget.

20 - Operational and financial reporting

1. The Executive Director shall report annually to the Governing Board on the performance

of his/her duties in accordance with the financial rules of the Clean Sky 2 Joint

Undertaking.

Within two months of the closure of each financial year, the Executive Director shall

submit to the Governing Board for approval an annual activity report on the progress

made by the Clean Sky 2 Joint Undertaking in the previous calendar year, in particular in

relation to the annual work plan for that year. That report shall include, inter alia,

information on the following matters:

(a) research, innovation and other actions carried out and the corresponding

expenditure;

(b) the actions submitted, including a breakdown by participant type, including SMEs,

and by country;

(c) the actions selected for funding, including a breakdown by participant type,

including SMEs, and by country and indicating the contribution of the Clean Sky 2

Joint Undertaking to the individual participants and actions.

2. Once approved by the Governing Board, the annual activity report shall be made publicly

available.

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3. By 1 March of the following financial year, the accounting officer of the Clean Sky 2

Joint Undertaking shall send the provisional accounts to the Commission's accounting

officer and the Court of Auditors.

By 31 March of the following financial year, the Clean Sky 2 Joint Undertaking shall

send the report on the budgetary and financial management to the European

Parliament, the Council and the Court of Auditors.

On receipt of the Court of Auditors' observations on the Clean Sky 2 Joint

Undertaking's provisional accounts pursuant to Article 148 of Regulation (EU,

Euratom) No 966/2012, the accounting officer shall draw up the Clean Sky 2 Joint

Undertaking's final accounts and the Executive Director shall submit them to the

Governing Board for an opinion.

The Governing Board shall deliver an opinion on the Clean Sky 2 Joint Undertaking's

final accounts.

The Executive Director shall, by 1 July following each financial year, send the final

accounts to the European Parliament, the Council, the Commission and the Court of

Auditors, together with the Governing Board's opinion.

The final accounts shall be published in the Official Journal of the European Union by

15 November of the following year.

The Executive Director shall send the Court of Auditors a reply to its observations

made in its annual report by 30 September. The Executive Director shall also send this

reply to the Governing Board.

The Executive Director shall submit to the European Parliament, at the latter's request,

any information required for the smooth application of the discharge procedure for the

financial year in question, in accordance with Article 165(3) of Regulation (EU,

Euratom) No 966/2012.

▌

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21 - Internal audit

The Commission's internal auditor shall exercise the same powers over the Clean Sky 2 Joint

Undertaking as those exercised in respect of the Commission.

22 - Liability of members and insurance

1. The financial liability of the members for the debts of the Clean Sky 2 Joint Undertaking

shall be limited to their contribution already made for the administrative costs.

2. The Clean Sky 2 Joint Undertaking shall take out and maintain appropriate insurance.

23 - Conflict of interest

1. The Clean Sky 2 Joint Undertaking, its bodies and staff shall avoid any conflict of interest

in implementing their activities.

2. The Governing Board shall adopt rules to prevent and manage conflicts of interest

applicable to its members, bodies and staff. In those rules, provision shall be made to

avoid a conflict of interest for the representatives of the members serving in the

Governing Board.

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24 - Winding up

1. The Clean Sky 2 Joint Undertaking shall be wound up at the end of the period defined in

Article 1 of this Regulation.

2. The winding up procedure shall be automatically triggered if the Commission or all

private members withdraw from the Clean Sky 2 Joint Undertaking.

3. For the purpose of conducting the proceedings to wind up the Clean Sky 2 Joint

Undertaking, the Governing Board shall appoint one or more liquidators, who shall

comply with the decisions of the Governing Board.

4. When the Clean Sky 2 Joint Undertaking is being wound up, its assets shall be used to

cover its liabilities and the expenditure relating to its winding up. Any surplus shall be

distributed among the members at the time of the winding up in proportion to their

financial contribution to the Clean Sky 2 Joint Undertaking. Any such surplus distributed

to the Union shall be returned to the Union budget.

5. An ad hoc procedure shall be set up to ensure the appropriate management of any

agreement concluded or decision adopted by the Clean Sky 2 Joint Undertaking as well as

any procurement contract with a longer duration than the Clean Sky 2 Joint Undertaking.

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ANNEX II

PRIVATE MEMBERS OF THE CLEAN SKY 2 JOINT UNDERTAKING

1. LEADERS:

1. AgustaWestland SpA and AgustaWestland Limited

2. Airbus SAS

3. Alenia Aermacchi SpA

4. Dassault Aviation SA

5. Deutsches Zentrum für Luft- und Raumfahrt (DLR) e.V.

6. EADS-CASA

7. Airbus Helicopters SAS

8. Evektor

9. Fraunhofer Gesellschaft zur Förderung der angewandten Forschung e.V

10. Liebherr-Aerospace Lindenberg GmbH

11. MTU Aero Engines AG

12. Piaggio Aero Industries

13. Rolls-Royce Plc.

14. SAAB AB

15. Safran SA

16. Thales Avionics SAS

2. 2. ASSOCIATES

List of Associates of the Clean Sky Joint Undertaking under Regulation (EC) No 71/2008 that

shall also be members of the Clean Sky 2 Joint Undertaking under this Regulation until

completion of their actions initiated under Regulation (EC) 71/20081.

1. LMS International NV

2. Micromega Dynamics

3. EPFL Ecole Polytechnique Lausanne

4. ETH Zurich

5. Huntsman Advanced Materials

6. RUAG Schweiz AG

7. University of Applied Sciences NW Switzerland (FHNW) ▌

1 This list is based on Annex II of Regulation (EC) No 71/2008, updated on the basis of the existing grant agreements signed by the Clean Sky Joint Undertaking.

143

8. DIEHL Aerospace

9. DLR

10. EADS Deutschland GmbH

11. HADEG Recycling GmbH

12. MTU Aero Engines

13. Aeronova Aerospace SAU

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14. Aeronova Engineering Solutions

15. Aeronova Manufacturing Engineering

16. ITP

17. EADS France

18. ONERA

19. Zodiac ECE

20. Zodiac Intertechnique

21. Zodiac Aerazur

22. HAI

23. IAI

24. Aerosoft

25. Avio

26. CIRA

27. CSM

28. DEMA

29. FOX BIT

30. IMAST

31. Piaggio Aero Industries

32. Politecnico di Torino

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33. Universita degli Studi Di Napoli “Federico II” Polo delle Scienze e della Tecnologia

34. Selex ES

35. SICAMB SPA

36. Univesità di Bologna

37. Università degli Studi di Pisa

38. ATR

39. ELSIS

40. University of Malta

41. Aeronamic

42. Airborne Technology Centre

43. KIN Machinebouw B.V.

44. Eurocarbon

45. Fokker Aerostructures B.V.1

46. Fokker Elmo

47. Green Systems for Aircraft Foundation (GSAF)

48. Igor Stichting IGOR

49. Microflown Technologies

50. NLR

1 Previously Stork Aerospace

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51. Stichting NL Cluster for ED

52. Stichting NL Cluster for SFWA

53. Sergem Engineering

54. GKN Aerospace Norway1

55. TU Delft

56. Universiteit Twente

57. PZL - Świdnik

58. Avioane Craiova

59. INCAS

60. Romaero

61. Straero

62. GKN Aerospace Sweden AB2

63. CYTEC3

64. Cranfield University

65. QinetiQ

66. University of Nottingham

1 Previously Volvo Aero Norge AS2 Previously Volvo Aero Corporation 3 Previously UMECO Structural Materials (DERBY) Limited; Previously Advanced

Composites Group (ACG)

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ANNEX III

Indicative allocation of the Union contribution to ITDs/IADPs/TAs

100%

IADPs

Large passenger aircraft 32%

Regional aircraft 6%

Rotorcraft 12%

ITDs

Airframes 19%

Engines 17%

Systems 14%

Transverse activities

Technology Evaluator 1% of the above IADP/ITD values

Eco-DESIGN Transverse Activity 2% of the above IADP/ITD values

Small Air Transport Transverse Activity 4% of the above IADP/ITD values

148

P7_TA-PROV(2014)0371

Bio-Based Industries Joint Undertaking *

European Parliament legislative resolution of 15 April 2014 on the proposal for a Council regulation on the Bio-Based Industries Joint Undertaking (COM(2013)0496 – C7-0257/2013 – 2013/0241(NLE))

(Consultation)

The European Parliament,

– having regard to the Commission proposal to the Council (COM(2013)0496),

– having regard to Article 187 and the first paragraph of 188 of the Treaty on European Union, pursuant to which the Council consulted Parliament (C7-0257/2013),

– having regard to Rule 55 of its Rules of Procedure,

– having regard to the report of the Committee on Industry, Research and Energy and the opinion of the Committee on Regional Development (A7-0092/2014),

1. Approves the Commission proposal as amended;

2. Calls on the Commission to alter its proposal accordingly, in accordance with Article 293(2) of the Treaty on the Functioning of the European Union;

3. Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;

4. Asks the Council to consult Parliament again if it intends to substantially amend the Commission proposal;

5. Instructs its President to forward its position to the Council and the Commission.

149

P7_TC1-NLE(2013)0241

Position of the European Parliament adopted on 15 April 2014 with a view to the adoption of Council regulation on the Bio-Based Industries Joint Undertaking

(Text with EEA relevance)

THE COUNCIL OF THE EUROPEAN UNION

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

187 and the first paragraph of Article 188 thereof,

Having regard to the proposal from the European Commission,

Having regard to the opinion of the European Parliament1,

Having regard to the opinion of the Economic and Social Committee2,

Whereas

(1) Public-private partnerships in the form of Joint Technology Initiatives were initially

provided for in Decision (EC) No 1982/2006 of the European Parliament and of the

Council of 18 December 2006 concerning the Seventh Framework Programme of the

European Community for research, technological development and demonstration

activities (2007-2013)3.

(2) Council Decision 2006/971/EC of 19 December 2006 concerning the Specific

Programme ‘Cooperation’ implementing the Seventh Framework Programme of the

European Community for research, technological development and demonstration

activities (2007-2013)4 identified specific public-private partnerships to be supported.

1 Position of the European Parliament of 15 April 2014.2 OJ … [ESC opinion]3 OJ L 412, 30.12.2006, p. 1.4 OJ L 400, 30.12.2006, p. 86.

150

(3) Regulation (EU) No 1291/2013 of the European Parliament and of the Council of

11 December 2013 establishing Horizon 2020 - The Framework Programme for

Research and Innovation (2014-2020)1 aims to achieve a greater impact on research

and innovation by combining Horizon 2020 Framework Programme and private-sector

funds in public-private partnerships in key areas where research and innovation can

contribute to the Union's wider competitiveness goals, leverage private investment,

and help tackle societal challenges. Those partnerships should be based on a long-

term commitment, including a balanced contribution from all partners, be

accountable for the achievement of their objectives and be aligned with the Union's

strategic goals relating to research, development and innovation. The governance

and functioning of those partnerships should be open, transparent, effective and

efficient and give the opportunity to a wide range of stakeholders active in their

specific areas to participate. The involvement of the Union in those partnerships may

take the form of financial contributions to joint undertakings established on the basis

of Article 187 of the Treaty under Decision No 1982/2006/EC

(4) In accordance with Regulation (EU) No 1291/2013 and Council Decision

2013/743/EU of 3 December 2013 establishing the Specific Programme implementing

Horizon 2020 (2014-2020)2 support may be provided to joint undertakings established

in the Horizon 2020 Framework Programme under the conditions specified in that

Decision.

(5) Europe 2020 Strategy3 underscores the need to develop favourable conditions for

investment in knowledge and innovation so as to achieve smart, sustainable and

inclusive growth in the Union. Both European Parliament and Council have endorsed

this strategy.

1 OJ L 347, 20.12.2013, p. 104 [H2020 FP]2 OJ L 347, 20.12.2013, p. 965 [H2020 SP]3 COM(2010)2020 final.

151

(6) The Bio-based Industries Consortium (hereinafter "BIC") developed a vision paper and

a Strategic Innovation and Research Agenda, based on extensive consultation with

public and private stakeholders. The Strategic Innovation and Research Agenda

describes the main technological and innovation challenges that need to be overcome

in order to develop sustainable and competitive bio-based industries in Europe and

identifies research, demonstration and deployment activities to be carried out by a

Joint Technology Initiative on "Bio-based Industries".

(7) BIC is a non-profit organisation that was created to represent the industry group that

supports the Joint Technology Initiative on Bio-based Industries. Its members cover

the entire bio-based value chain and consist of large industries, small and medium-

sized enterprises (SMEs), regional clusters, European trade associations, and European

Technology Platforms. The aim of BIC is to ensure and promote the technological and

economic development of the bio-based industries in Europe. Any interested

stakeholders along the bio-based value chain may apply for membership. It applies

general principles of openness and transparency regarding membership, ensuring a

wide industrial involvement.

(7a) Any eligible institution may become a participant or a coordinator in the selected

projects.

(8) The Commission Communication of 13 February 2012 "Innovating for Sustainable

Growth: A Bioeconomy for Europe"1 and in particular its Action Plan calls for a public

private partnership to support the establishment of sustainable and competitive bio-

based industries and value chains in Europe. In view of moving towards a post-

petroleum society, the Communication aims to integrate better biomass producing and

processing sectors in order to reconcile food security and natural resource scarcity and

environmental objectives with the use of biomass for industrial and energy purposes.

1 COM(2012) 60.

152

(9) The Commission Communication of 10 October 2012 "A Stronger European Industry

for Growth and Economic Recovery"1 confirms the strategic importance of bio-based

industries for the future competitiveness of Europe, as identified in the Commission

Communication of 21 December 2007 "A lead market initiative for Europe"2 and

stresses the need for a Joint Technology Initiative on "Bio-based Industries".

(10) Bio-based industries and their value chains are facing complex and substantial

technology and innovation challenges. As a nascent sector, bio-based industries have

to overcome the dispersion of technical competences and the limited publically

available data on real resource availability in order to build sustainable and

competitive value chains. In order to tackle these challenges, critical mass has to be

achieved in a focused and coherent way at European level in terms of scale of activity,

excellence, and potential for innovation.

(11) The Joint Technology Initiative on Bio-based Industries should mitigate the different

types of market failures that discourage private investment into pre-competitive

research, demonstration and deployment activities for bio-based industries in Europe.

In particular, it should ascertain the availability of reliable biomass supply taking into

account other competing social and environmental demands, and support the

development of advanced processing technologies, large scale demonstration activities

and policy instruments, thus reducing the risk for private research and innovation

investment in the development of sustainable and competitive bio-based products and

biofuels.

(12) The Joint Technology Initiative on Bio-based Industries should be a public-private

partnership aiming at increasing investment in the development of a sustainable bio-

based industry sector in Europe. It should provide environmental and socio-economic

benefits for European citizens, increase the competitiveness of Europe and contribute

to establishing Europe as a key player in research, demonstration and deployment of

advanced bio-based products and biofuels.

1 COM(2012) 582 final.2 COM(2007) 860 final.

153

(13) The objective of the Joint Technology Initiative on Bio-based Industries is to

implement a programme of research and innovation activities in Europe that will

assess the availability of renewable biological resources that can be used for the

production of bio-based materials and on that basis support the establishment of

sustainable bio-based value chains. These activities should be carried out through

collaboration between stakeholders along the entire bio-based value chains, including

primary production and processing industries, consumer brands, SMEs, research and

technology centres and universities.

(14) The ambition and scope of the objectives of the Joint Technology Initiative on Bio-

based Industries, the scale of the financial and technical resources that need to be

mobilized, and the need to achieve effective coordination and synergy of resources and

funding, require the involvement of the Union. Therefore a Joint Undertaking for the

implementation of the Joint Technology Initiative on Bio-based Industries (hereinafter

the BBI Joint Undertaking) should be established as a legal entity.

(15) The objective of the BBI Joint Undertaking should be achieved through support of

research and innovation activities by using resources from the public and private

sectors. To this end, the BBI Joint Undertaking should organise calls for proposals for

supporting research, demonstration and deployment activities.

(16) To achieve maximum impact, the Bio-Based Industries Joint Undertaking should

develop close synergies with other Union programmes in areas such as education,

environment, competitiveness and SMEs, and with the Cohesion Policy funds and

Rural Development Policy, which can specifically help to strengthen national and

regional research and innovation capabilities in the context of smart specialisation

strategies.

(16a) Horizon 2020 should contribute to the closing of the research and innovation divide

within the Union by promoting synergies with the European Structural and

Investment Funds (ESIF). Therefore the BBI Joint Undertaking should seek to

develop close interactions with the ESIF, which can specifically help to strengthen

local, regional and national research and innovation capabilities in the area of the

BBI Joint Undertaking and underpin smart specialisation efforts.

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(17) The founding members of the BBI Joint Undertaking should be the Union and BIC.

(18) The rules for the organisation and operation of the BBI Joint Undertaking should be

laid down in the Statutes of the BBI Joint Undertaking as part of this Regulation.

(19) BIC has expressed, in writing, its agreement to pursue the research activities in the

area of the BBI Joint Undertaking within a structure well adapted to the nature of a

public-private partnership. It is appropriate that BIC accedes to the Statutes set out in

Annex to this Regulation by signing a letter of endorsement.

(20) In order to achieve its objectives, the BBI Joint Undertaking should provide its

financial support to the actions through open and transparent procedures mainly in

the form of grants to participants following open and competitive calls ▌.

(21) Contributions from the private Members should not only be limited to the

administrative costs of the BBI Joint Undertaking and to the co-financing required to

carry out research and innovation actions supported by the BBI Joint Undertaking.

(22) Their contributions should also relate to additional activities to be undertaken by the

private Members, as specified in an additional activities plan; in order to get a proper

overview of the leverage effect those additional activities should represent

contributions to the broader Joint Technology Initiative on Bio-Based Industries.

(23) Participation in indirect actions funded by the BBI Joint Undertaking should comply

with Regulation (EU) No 1290/2013 of the European Parliament and of the Council of

11 December 2013 laying down the rules for participation and dissemination in

"Horizon 2020 - the Framework Programme for Research and Innovation (2014-

2020)"1. The BBI Joint Undertaking should, moreover, ensure consistent application

of these rules based on relevant measures adopted by the Commission.

1 OJ L 347, 20.12.2013, p. 81 [H2020 RfP]

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(23a) The BBI Joint Undertaking should also use electronic means managed by the

Commission to ensure openness, transparency and facilitate participation.

Therefore, the calls for proposals launched by the BBI Joint Undertaking should

also be published on the single portal for participants as well as through other

Horizon 2020 electronic means of dissemination managed by the Commission.

Moreover, relevant data on inter alia proposals, applicants, grants and participants

should be made available by the BBI Joint Undertaking for inclusion in the Horizon

2020 reporting and dissemination electronic systems managed by the Commission,

in an appropriate format and with the periodicity corresponding to the

Commission’s reporting obligations.

(24) The Union financial contribution to the BBI Joint Undertaking should be managed in

accordance with the principle of sound financial management and with the relevant

rules on indirect management set out in Regulation (EU, Euratom) No 966/2012 and

Commission delegated Regulation (EU) No 1268/2012 of 29 October 2012 on the

rules of application of Regulation (EU, Euratom) No 966/20121.

(25) For the purpose of simplification, administrative burdens should be reduced for all

parties. Double audits and disproportionate documentation and reporting should be

avoided. Audits of recipients of Union funds under this Regulation should be carried

out in ▌compliance with Regulation (EU) No 1291/2013 ▌.

(26) The financial interests of the Union and of the other members of the BBI Joint

Undertaking should be protected through proportionate measures throughout the

expenditure cycle including the prevention, detection and investigation of

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

appropriate, administrative and financial penalties in accordance with Regulation (EU,

Euratom) No 966/2012.

(27) The Commission's internal auditor should exercise the same powers over the BBI Joint

Undertaking as those exercised in respect of the Commission.

(28) In view of the specific nature and the current status of the Joint Undertakings, and

in order to ensure continuity with the 7th Framework Programme, the Joint

1 OJ L 362, 31.12.2012, p. 1.

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Undertakings should continue to be subject to a separate discharge. By way of

derogation from Articles 60(7) and 209 of Regulation (EU, Euratom) No 966/2012,

discharge for the implementation of the budget of the BBI Joint Undertaking should

therefore be given by the European Parliament on the recommendation of the

Council. Hence, the reporting requirements set out in Article 60(5) should not apply

to the contribution of the Union to the BBI Joint Undertaking but they should be

aligned to the extent possible to the ones foreseen for bodies under Article 208 of

Regulation (EU, Euratom) No 966/2012. The auditing of ▌accounts and of the legality

and regularity of the underlying transactions should be undertaken by the Court of

Auditors.

(28a) The BBI Joint Undertaking should operate in an open and transparent way

providing all relevant information in a timely manner to its appropriate bodies as

well as promoting its activities, including information and dissemination activities to

the wider public. The rules of procedure of the bodies of the Joint Undertaking

should be made publicly available.

(29) In order to facilitate its establishment, the Commission should be responsible for the

establishment and initial operation of the BBI Joint Undertaking until it has the

operational capacity to implement its own budget.

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(30) In accordance with the principles of subsidiarity and proportionality as set out in

Article 5 of the Treaty on European Union, the objectives of the BBI Joint

Undertaking in strengthening industrial research and innovation across the Union

cannot be sufficiently achieved by the Member States and can therefore, by reason of

avoiding duplication, retaining critical mass and ensuring that public financing is used

in an optimal way, be better achieved by the Union; this Regulation confines itself to

the minimum required in order to achieve those objectives and does not go beyond

what is necessary for that purpose.

(31) With a view to the overall aim of Horizon 2020 to achieve greater simplification and

coherence, all calls for proposals under BBI should take into account the duration

of the Horizon 2020 Framework Programme.

HAS ADOPTED THIS REGULATION:

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Article 1

Establishment

1. For the implementation of the Joint Technology Initiative on Bio-Based Industries, a

joint undertaking within the meaning of Article 187 of the Treaty (hereinafter "BBI

Joint Undertaking"), is established until 31 December 2024. In order to take into

account the duration of the Horizon 2020 Framework Programme, calls for

proposals under BBI shall be launched at the latest by 31 December 2020. In duly

justified cases calls for proposals may be launched until 31 December 2021.

2. The BBI Joint Undertaking shall constitute a body entrusted with the implementation

of a public-private partnership referred to in Article 209 of Regulation (EU, Euratom)

No 966/2012 of the European Parliament and the Council1.

3. The BBI Joint Undertaking shall have legal personality. In each of the Member States,

it shall enjoy the most extensive legal capacity accorded to legal persons under the

laws of those Member States. It may, in particular, acquire or dispose of movable and

immovable property and may be party to legal proceedings.

4. The seat of the BBI Joint Undertaking shall be located in Brussels, Belgium.

5. The Statutes of the BBI Joint Undertaking are set out in the Annex.

Article 2

Objectives

The BBI Joint Undertaking shall have the following objectives:

(a) to contribute to the implementation of Regulation (EU) No 1291/2013 of the European

Parliament and of the Council of 11 December 2013 establishing the Horizon 2020

Framework Programme and in particular Part III of Council Decision 2013/743/EU

▌.

1 OJ L 298, 26.10.2012, p.1.

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(b) to contribute to the objectives of the Biobased Industries Joint Technology Initiative

for a more resource efficient and sustainable low-carbon economy and increasing

economic growth and employment, in particularly in rural areas, by developing

sustainable and competitive bio-based industries in Europe based on advanced

biorefineries that source their biomass sustainably; and in particular to:

(c) demonstrate technologies that enable new chemical building blocks, new materials,

and new consumer products from European biomass and which replace the need for

fossil based inputs;

(d) develop business models that integrate economic actors along the whole value chain

from supply of biomass to biorefinery plants to consumers of bio-based materials,

chemicals and fuels, including through creating new cross-sector interconnections and

supporting cross-industry clusters; and

(e) set up flagship biorefinery plants that deploy the technologies and business models for

bio-based materials, chemicals and fuels and demonstrate cost and performance

improvements to levels that are competitive with fossil based alternatives.

Article 3

Union financial contribution

1. The maximum Union contribution, including EFTA appropriations to the BBI Joint

Undertaking to cover administrative costs and operational costs shall be EUR 975

million. The contribution shall be paid from the appropriations in the general budget of

the Union allocated to the Horizon 2020 Specific Programme implementing the

Horizon 2020 Framework Programme in accordance with the relevant provisions of

Article 58(1)(c)(iv) and Articles 60 and 61 of Regulation (EU, Euratom) No 966/2012

for bodies referred to in Article 209 of that Regulation.

2. The arrangements for the Union financial contribution shall be set out in a delegation

agreement and annual transfer of funds agreements to be concluded between the

Commission, on behalf of the Union, and the BBI Joint Undertaking.

3. The delegation agreement referred to in paragraph 2 shall address the elements set out

in Article 58(3) and Articles 60 and 61 of Regulation (EU, Euratom) No 966/2012 and

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in Article 40 of Commission delegated Regulation (EU) No 1268/2012 as well as inter

alia the following:

(a) the requirements for the BBI Joint Undertaking's contribution regarding the

relevant performance indicators referred to in Annex II to Council Decision No

2013/743/EU ▌;

(b) the requirements for the BBI Joint Undertaking's contribution in view of the

monitoring referred to in Annex III to Council Decision No 2013/743/EU ▌

(c) the specific performance indicators related to the functioning of the BBI Joint

Undertaking;

(d) the arrangements regarding the provision of data necessary to ensure that the

Commission is able to meet its dissemination and reporting obligations

including on the single portal for participants as well as through other

Horizon 2020 electronic means of dissemination managed by the Commission;

(da) provisions for the publication of calls for proposals of the BBI Joint

Undertaking also on the single portal for participants as well as through other

Horizon 2020 electronic means of dissemination managed by the Commission;

(e) the use of and changes to human resources, in particular recruitment by function

group, grade and category, the reclassification exercise and any changes to the

number of staff members.

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Article 4

Contributions of Members other than the Union

1. The Members of the BBI Joint Undertaking other than the Union shall make or arrange

for their constituent entities to make a total contribution of at least EUR 2 730 million

over the period defined in Article 1.

2. The contribution referred to in paragraph 1 shall consist of the following:

(a) contributions to the BBI Joint Undertaking as laid down in clause 12(2), clause

12(3)(b) and clause 12(3)(c) of the Statutes contained in the Annex.

(b) in kind contributions of at least EUR 1 755 million over the period defined in

Article 1 by the Members other than the Union or their constituent entities

consisting of the costs incurred by them in implementing additional activities

outside the work plan of the BBI Joint Undertaking contributing to the objectives

of the BBI Joint Technology Initiative. Other Union funding programmes may

support those costs in compliance with the applicable rules and procedures. In

such cases, Union financing shall not substitute for the in kind contributions

from the Members other than the Union or their constituent entities.

Those costs referred to in point (b) shall not be eligible for financial support by

the BBI Joint Undertaking. The corresponding activities shall be set out in an

annual additional activities plan that shall indicate the estimated value of those

contributions.

3. The Members of the BBI Joint Undertaking other than the Union shall report each year

by 31 January to the Governing Board of the BBI Joint Undertaking on the value of the

contributions referred to in paragraph 2 made in each of the previous financial years.

The States Representatives Group shall also be informed in a timely manner.

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4. For the purpose of valuing the contributions referred to in point (b) of paragraph 2 and

clause 12(3)(c) of the Statutes contained in the Annex, the costs shall be determined

according to the usual cost accounting practices of the entities concerned, to the

applicable accounting standards of the country where each entity is established, and to

the applicable International Accounting Standards / International Financial Reporting

Standards. The costs shall be certified by an independent external auditor appointed by

the entity concerned. The valuation method may be verified by the BBI Joint

Undertaking should there be any uncertainty arising from the certification. For the

purposes of this Regulation, the costs incurred in additional activities shall not be

audited by the BBI Joint Undertaking or any Union body.

5. The Commission may terminate, proportionally reduce or suspend the Union financial

contribution to the BBI Joint Undertaking or trigger the winding up procedure referred

to in clause 20(2) of the Statutes contained in the Annex if those Members or their

constituent entities do not contribute, contribute only partially or contribute late with

regard to the contributions referred to in paragraph 2. The Commission decision shall

not hinder the reimbursement of eligible costs already incurred by the Members by

the time of the notification of the decision to the Joint Undertaking.

Article 5

Financial rules

Without prejudice to Article 12, the BBI Joint Undertaking shall adopt its specific Financial

rules in accordance with Article 209 of Regulation (EU, Euratom) No 966/2012 and Regulation

(EU) No … [Delegated Regulation on the model Financial Regulation for PPPs].

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Article 6

Staff

1. The Staff Regulations of Officials and the Conditions of Employment of Other

Servants of the European Union as laid down by Council Regulation (EEC, Euratom,

ECSC) No 259/681 and the rules adopted by agreement between the institutions of the

Union for giving effect to those Staff Regulations and those Conditions of

Employment of Other Servants shall apply to the staff employed by the BBI Joint

Undertaking.

2. The Governing Board shall exercise, with respect to the staff of the BBI Joint

Undertaking, the powers conferred by the Staff Regulations on the Appointing

Authority and by the Conditions of Employment of Other Servants on the Authority

Empowered to Conclude Contract of Employment (hereinafter "the appointing

authority powers").

The Governing Board shall adopt, in accordance with Article 110 of the Staff

Regulations, a decision based on Article 2 paragraph 1 of the Staff Regulations and on

Article 6 of the Conditions of Employment of Other Servants delegating the relevant

appointing authority powers to the Executive Director and defining the conditions

under which this delegation of powers can be suspended. The Executive Director is

authorised to sub-delegate those powers

Where exceptional circumstances so require, the Governing Board may by way of a

decision temporarily suspend the delegation of the appointing authority powers to the

Executive Director and those sub-delegated by the latter and exercise them itself or

delegate them to one of its members or to a staff member of the Joint Undertaking

other than the Executive Director

3. The Governing Board shall adopt appropriate implementing rules to the Staff

Regulations and the Conditions of Employment of Other Servants in accordance with

Article 110 of the Staff Regulations.

1 OJ 56, 4.3.1968, p. 1.

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4. The staff resources shall be determined by the staff establishment plan of the BBI Joint

Undertaking indicating the number of temporary posts by function group and by grade

and the number of contract staff expressed in full-time equivalents, in line with its

annual budget.

5. The staff of the BBI Joint Undertaking shall consist of temporary staff and contract

staff.

6. All cost related to staff shall be borne by the BBI Joint Undertaking.

Article 7

Seconded national experts and trainees

1. The BBI 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 information on staff as referred to

in Article 6(4) of this Regulation in line with the annual budget.

2. The Governing Board shall adopt a decision laying down rules on the secondment of

national experts to the BBI Joint Undertaking and on the use of trainees.

Article 8

Privileges and Immunities

The Protocol on the Privileges and Immunities of the Union shall apply to the BBI Joint

Undertaking and its staff.

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Article 9

Liability of the BBI Joint Undertaking

1. The contractual liability of the BBI 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 BBI 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 BBI Joint Undertaking in respect of the liability referred to in

paragraphs 1 and 2 and the costs and expenses incurred in connection therewith shall

be considered as expenditure of the BBI Joint Undertaking and shall be covered by the

resources of the BBI Joint Undertaking.

4. The BBI Joint Undertaking shall be solely responsible for meeting its obligations.

Article 10

Jurisdiction of the Court of Justice and applicable law

1. The Court of Justice shall have jurisdiction:

▌

(b) pursuant to any arbitration clause contained in agreements, decisions or contracts

concluded by the BBI Joint Undertaking;

(c) in disputes relating to compensation for damage caused by the staff of the BBI

Joint Undertaking in the performance of their duties;

(d) in any dispute between the BBI Joint Undertaking and its servants within the

limits and under the conditions laid down in the Staff Regulations of Officials

and the Conditions of Employment of Other Servants of the European Union.

2. Regarding any matter not covered by this Regulation or by other acts of Union law, the

law of the State where the seat of the BBI Joint Undertaking is located shall apply.

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Article 11

Evaluation

1. By 30 June 2017 the Commission shall carry out, with the assistance of independent

experts, an interim evaluation of the BBI Joint Undertaking. The Commission shall

prepare a report on that evaluation which includes conclusions of the evaluation and

observations by the Commission. The Commission shall send that report to the

European Parliament and to the Council by 31 December 2017. The results of the

interim evaluation of BBI shall be taken into account in the in-depth assessment and

in the interim evaluation referred to in Article 32 of Regulation (EU) No 1291/2013.

2. On the basis of the conclusions of the interim evaluation referred to in paragraph 1 the

Commission may act in accordance with Article 4(5) or take any other appropriate

action.

3. Within six months after the winding up of the BBI Joint Undertaking, but no later than

two years after the triggering of the winding up procedure referred to in clause 20 of

the Statutes contained in the Annex, the Commission shall conduct a final evaluation

of the BBI Joint Undertaking. The results of that final evaluation shall be presented to

the European Parliament and to the Council.

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Article 12

Discharge

By way of derogation from Articles 60(7) and 209 of Regulation No 966/2012, the discharge

for the ▌implementation of the budget of the BBI Joint Undertaking shall be ▌ given by the

European Parliament, upon recommendation of the Council ▌ in accordance with the procedure

provided for in the financial rules of the BBI Joint Undertaking.

▌.

Article 13

Ex-post audits

1. Ex-post audits of expenditure on indirect actions shall be carried out by the BBI Joint

Undertaking in accordance with Article 29 of Regulation (EU) No 1291/2013 as part

of the Horizon 2020 Framework Programme indirect actions.

2. ▌The Commission may decide to carry out the audits referred to in paragraph 1. It

shall do so in accordance with the applicable rules, in particular Regulation (EU,

Euratom) No 966/2012, Regulation (EU) No 1291/2013 and Regulation (EU) No

1290/2013.

Article 14

Protection of the financial interests of the Members

1. ▌The BBI Joint Undertaking shall grant Commission staff and other persons

authorised by the Joint Undertaking or the Commission, as well as the Court of

Auditors, access to its sites and premises and to all the information, including

information in electronic format, needed in order to conduct their audits.

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2. The European Anti-fraud Office (OLAF) may carry out investigations, including on-

the-spot checks and inspections, in accordance with the provisions and procedures laid

down in Regulation (EC, Euratom) No 883/2013 of the European Parliament and of

the Council ▌and Council Regulation (Euratom, EC) No 2185/96 ▌with a view to

establishing whether there has been fraud, corruption or any other illegal activity

affecting the financial interests of the Union in connection with an agreement or

decision or a contract funded under this Regulation.

3. Without prejudice to paragraphs 1 and 2, contracts, agreements and decisions, resulting

from the implementation of this Regulation shall contain provisions expressly

empowering the Commission, the BBI Joint Undertaking, the Court of Auditors and

OLAF to conduct such audits and investigations, according to their respective

competences.

4. The BBI 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 BBI Joint Undertaking shall accede to the Interinstitutional Agreement of 25 May

1999 between the European Parliament, the Council and the Commission concerning

internal investigations by OLAF1. The BBI Joint Undertaking shall adopt the necessary

measures needed to facilitate internal investigations conducted by OLAF.

1 OJ L 136, 31.5.1999, p. 15.

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Article 15

Confidentiality

Without prejudice to Article 16, the BBI Joint Undertaking shall ensure the protection of

sensitive information whose disclosure could damage the interests of its Members or of

participants in the activities of the BBI Joint Undertaking.

Article 16

Transparency

1. Regulation (EC) No 1049/2001 of the European Parliament and of the Council

regarding public access to European Parliament, Council and Commission documents1,

shall apply to documents held by the BBI Joint Undertaking.

2. The BBI Joint Undertaking Governing Board may adopt practical arrangements for

implementing Regulation (EC) No 1049/2001.

3. Without prejudice to Article 10, decisions taken by the BBI Joint Undertaking pursuant

to Article 8 of Regulation (EC) No 1049/2001 may form the subject of a complaint to

the Ombudsman under the conditions laid down in Article 228 of the Treaty.

Article 17

Rules for participation and dissemination

Regulation (EU) No 1290/2013 shall apply to the actions funded by the BBI Joint Undertaking.

In accordance with that Regulation, the BBI Joint Undertaking shall be considered as a funding

body and shall provide financial support to indirect actions as set out in clause 1 of the Statutes

contained in the Annex.

1 OJ L 145, 31.5.2001, p. 43.

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Article 18

Support from the host State

An administrative agreement may be concluded between the BBI Joint Undertaking and the

State where its seat is located concerning privileges and immunities and other support to be

provided by this State to the BBI Joint Undertaking.

Article 19

Initial actions

1. The Commission shall be responsible for the establishment and initial operation of the

BBI Joint Undertaking until it has the operational capacity to implement its own

budget. The Commission shall carry out, in accordance with Union law, all necessary

actions in collaboration with the other Members and with the involvement of the

competent bodies of the BBI Joint Undertaking.

2. For that purpose,

(a) until the Executive Director takes up his duties following his/her appointment by

the Governing Board in accordance with clause 8 of the Annex, the Commission

may designate a Commission official to act as interim Executive Director and

exercise the duties assigned to the Executive Director who may be assisted by a

limited number of Commission officials:

(b) by derogation from Article 6 (2) of this Regulation, the interim Director shall

exercise the appointing authority powers;

(c) the Commission may assign a limited number of its officials on an interim basis.

3. The interim Executive Director may authorise all payments covered by the

appropriations provided in the annual budget of the BBI Joint Undertaking once

approved by the Governing Board and may conclude agreements, decisions and

contracts, including staff contracts following the adoption of the BBI Joint

Undertaking's staff establishment plan.

4. The interim Executive Director shall in common accord with the Executive Director of

the BBI Joint Undertaking and subject to the approval of the Governing Board

determine the day on which the BBI Joint Undertaking has the capacity to implement

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its own budget. From that day, the Commission shall abstain from making

commitments and executing payments for the activities of the BBI Joint Undertaking.

Article 20

Entry into force

This Regulation shall enter into force on the twentieth day following that of its publication in

the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at …,

For the Council

The President

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ANNEX

STATUTES OF THE BBI JOINT UNDERTAKING

1 - Tasks

The BBI Joint Undertaking shall carry out the following tasks:

(a) ensure the establishment and sustainable management of the Joint Technology

Initiative on Bio-Based Industries;

(b) mobilise the public and private sector resources needed;

(c) establish and develop close and long-term cooperation between the Union, industry

and the other stakeholders;

(d) ensure the efficiency of the Joint Technology Initiative on Bio-Based Industries;

(e) reach the critical mass of research effort to embark on a long-term programme;

(f) monitor progress towards the achievement of the objectives of the BBI Joint

Undertaking;

(g) support financially research and innovation indirect actions mainly through grants;

(h) information, communication, exploitation and dissemination activities by applying

mutatis mutandis the provisions of Article 28 of Regulation (EU) No 1291/2013,

including making the detailed information on results from calls for proposals

available and accessible in a common H2020 e-database;

(ha) liaising with a broad range of stakeholders including research organisations and

universities;

(i) any other task needed to achieve the objectives set out in Article 2 of this Regulation.

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2 - Members

1. The Members of the BBI Joint Undertaking shall be the following:

(a) the Union, represented by the Commission,

(b) upon acceptance of these Statutes, by means of a letter of endorsement, the Bio-

based Industries Consortium Aisbl (hereinafter referred to as BIC), a non-profit

organization established under Belgium law (registration number: 0521-857-

822), with its permanent office in Brussels, Belgium

1a. Constituent entities are the entities that constitute each Member of the Joint

Undertaking other than the Union, according to that Member's Statutes.

3 - Changes to membership

1. Provided that it contributes to the funding referred to in clause 12 to achieve the

objectives of the BBI Joint Undertaking set out in Article 2 of this Regulation, and

accepts the Statutes of the BBI Joint Undertaking, any legal entity that directly or

indirectly supports research and innovation in a Member State or in a country

associated to the Horizon 2020 Framework Programme may apply to become a

Member of the BBI Joint Undertaking.

2. Any application for new membership to the BBI Joint Undertaking shall be addressed

to the Governing Board, accompanied by a proposal to adapt the composition of the

Governing Board set out in clause 5.

3. The Governing Board shall assess the application taking into account the relevance and

the potential added value of the applicant for the achievement of the objectives of the

BBI Joint Undertaking. It shall then decide on the application.

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4. Any Member may terminate its membership to the BBI Joint Undertaking. The

termination shall become effective and irrevocable six months after notification to the

other Members. As of then, the former Member shall be discharged from any

obligations other than those approved or incurred by the BBI Joint Undertaking prior

to terminating the membership.

5. Membership of the BBI Joint Undertaking may not be transferred to a third party

without prior agreement of the Governing Board.

6. The BBI Joint Undertaking shall publish on its website immediately upon any change

to membership pursuant to this clause an updated list of Members of the BBI Joint

Undertaking together with the date when such change takes effect.

4 - Organisation of the BBI Joint Undertaking

1. The bodies of the BBI Joint Undertaking shall be:

(a) the Governing Board;

(b) the Executive Director;

(c) the Scientific Committee;

(d) the States Representatives Group.

2. The Scientific Committee and the States Representatives Group shall be advisory

bodies to the BBI Joint Undertaking.

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5 - Composition of the Governing Board

1. The Governing Board shall be composed of the following:

– five representatives of the Commission;

– five representatives of the private Members, at least one of which should be a

Small and Medium Enterprise representative.

6 - Functioning of the Governing Board

1. The Commission shall hold 50 % of the voting rights. The vote of the Commission

shall be indivisible. The private Members shall hold an equal number of votes. The

Members shall use their best efforts to achieve consensus. Failing consensus, the

Governing Board shall take its decisions by a majority of at least 75% of all votes,

including the votes of those who are not in attendance.

2. The Governing Board shall elect its chairperson for a period of two years.

3. The Governing Board shall hold its ordinary meetings twice a year. It may hold

extraordinary meetings at the request of the Commission or of a majority of the

representatives of the private Members or at the request of the chairperson. The

meetings of the Governing Board shall be convened by its chairperson and shall

usually take place at the seat of the BBI Joint Undertaking.

The Executive Director shall have the right to take part in the deliberations, but shall

have no voting rights.

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The chairperson of the States Representatives Group shall have the right to attend

meetings of the Governing Board as an observer and take part in its deliberations, but

shall have no voting rights.

The chairperson of the Scientific Committee shall have the right, whenever issues

falling within its tasks are discussed, to attend meetings of the Governing Board as

an observer and take part in its deliberations, but shall have no voting rights.

The Governing Board may invite, on a case by case basis, other persons to attend its

meetings as observers, in particular representatives of regional authorities of the Union

and representatives of civil society.

The representatives of the Members shall not be personally liable for actions they have

taken in their capacity as representatives on the Governing Board.

The Governing Board shall adopt its own rules of procedure.

7 - Tasks of the Governing Board

1. The Governing Board shall have overall responsibility for the strategic orientation and

the operations of the BBI Joint Undertaking and shall supervise the implementation of

its activities.

1a. The Commission, within its role in the Governing Board, shall seek to ensure

coordination between the activities of the BBI Joint Undertaking and the relevant

activities of Horizon 2020 with a view to promoting synergies when identifying

priorities covered by collaborative research.

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2. The Governing Board shall in particular carry out the following tasks:

(a) assess, accept or reject applications for new membership in accordance with

clause 3;

(b) decide on the termination of the membership in the BBI Joint Undertaking of any

Member that does not fulfil its obligations;

(c) adopt the Financial rules of the BBI Joint Undertaking in accordance with Article

5 of this Regulation;

(d) adopt the annual budget of the BBI Joint Undertaking, including the staff

establishment plan indicating the number of temporary posts by function group

and by grade as well as the number of contract staff and seconded national

experts expressed in full-time equivalents;

(e) exercise the appointing authority powers with respect of the staff, in accordance

with Article 6(2) of this Regulation;

(f) appoint, dismiss, extend the term of office of, provide guidance to and monitor

the performance of the Executive Director;

(g) approve the organisational structure of the Programme Office, referred to in

clause 9(5), upon recommendation by the Executive Director;

(h) adopt the annual work plan and the corresponding expenditure estimates, as

proposed by the Executive Director after having consulted the Scientific

Committee and the States Representatives Group;

(i) approve the annual additional activities plan referred to in Article 4(2)(b) of this

Regulation on the basis of a proposal from the private Members and after having

consulted, where appropriate, an ad hoc advisory group

▌

(k) approve the annual activity report, including the corresponding expenditure;

178

(l) arrange, as appropriate, for the establishment of an internal audit capability of the

BBI Joint Undertaking;

(m) approve the calls as well as, where appropriate, the related rules for submission,

evaluation, selection, award and review procedures;

(n) approve the list of actions selected for funding on the basis of the ranking list

produced by a panel of independent experts;

(o) establish the BBI Joint Undertaking's communications policy upon a

recommendation by the Executive Director;

(p) where appropriate, establish implementing rules in line with Article 6(3) of this

Regulation;

(q) where appropriate, establish rules on the secondment of national experts to the

BBI Joint Undertaking and on the use of trainees in line with Article 7 of this

Regulation;

(r) where appropriate, set up advisory groups in addition to the bodies to the BBI

Joint Undertaking;

(s) where appropriate, submit to the Commission any request to amend this

Regulation proposed by any Member of the BBI Joint Undertaking;

(t) be responsible for any task that is not specifically allocated to one of the bodies

of the BBI Joint Undertaking which it may assign to one of those bodies;

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8 – Appointment, dismissal or extension of the term of office of the Executive Director

1. The Executive Director shall be appointed by the Governing Board, from a list of

candidates proposed by the Commission, following an open and transparent selection

procedure. The Commission shall associate the representation from the other Members

of the BBI Joint Undertaking in the selection procedure as appropriate.

In particular, an appropriate representation from the other Members of the BBI Joint

Undertaking shall be ensured at the pre-selection stage of the selection procedure. For

that purpose, the private Members shall appoint by common accord a representative as

well as an observer on behalf of the Governing Board.

2. The Executive Director is a member of staff and shall be engaged as a temporary agent

of the BBI Joint Undertaking under point (a) of Article 2 of the Conditions of

Employment of Other Servants of the Union.

For the purpose of concluding the contract of the Executive Director, the BBI Joint

Undertaking shall be represented by the chairperson of the Governing Board.

3. The term of office of the Executive Director shall be three years. By the end of that

period, the Commission associating the private Members as appropriate shall

undertake an assessment of the performance of the Executive Director and the BBI

Joint Undertaking's future tasks and challenges.

4. The Governing Board, acting on a proposal from the Commission which takes into

account the assessment referred to in paragraph 3, may extend the term of office of the

Executive Director once, for no more than four years.

5. An Executive Director whose term of office has been extended may not participate in

another selection procedure for the same post at the end of the overall period.

6. The Executive Director may be dismissed only upon a decision of the Governing

Board acting on a proposal from the Commission associating the private Members as

appropriate.

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9 - Tasks of the Executive Director

1. The Executive Director shall be the chief executive responsible for the day-to-day

management of the BBI Joint Undertaking in accordance with the decisions of the

Governing Board.

2. The Executive Director shall be the legal representative of the BBI Joint Undertaking.

He/ she shall be accountable to the Governing Board.

3. The Executive Director shall implement the budget of the BBI Joint Undertaking.

4. The Executive Director shall in particular carry out the following tasks in an

independent manner:

(a) prepare and submit for adoption to the Governing Board the draft annual budget,

including the corresponding staff establishment plan indicating the number of

temporary posts in each grade and function group and the number of contract

staff and seconded national experts expressed in full-time equivalents;

(b) prepare and submit for adoption to the Governing Board the annual work plan

and the corresponding expenditure estimates;

(c) submit for approval to the Governing Board the annual accounts;

(d) prepare and submit for approval to the Governing Board the annual activity

report, including the corresponding expenditure;

(e) submit for approval to the Governing Board the list of actions selected for

funding;

(ea) inform the States Representatives Group and the Scientific Committee

regularly of all matters relevant to their advisory role;

(f) sign individual agreements or decisions;

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(g) sign procurement contracts;

(h) implement the BBI Joint Undertaking's communications policy;

(i) organise, direct and supervise the operations and the staff of the BBI Joint

Undertaking within the constraints of the delegation by the Governing Board as

provided for in Article 6(2) of this Regulation;

(j) establish and ensure the functioning of an effective and efficient internal control

system and report any significant change to it to the Governing Board;

(k) ensure that risk assessment and risk management are performed;

(l) take any other measures needed for assessing the progress of the BBI Joint

Undertaking towards achieving its objectives;

(m) perform any other tasks entrusted or delegated to the Executive Director by the

Governing Board.

5. The Executive Director shall set up a Programme Office for the execution, under his/

her responsibility, of all support tasks arising from this Regulation. The Programme

Office shall be composed of the staff of BBI Joint Undertaking and shall in particular

carry out the following tasks:

(a) provide support in establishing and managing an appropriate accounting system

in accordance with the Financial rules of the BBI Joint Undertaking;

(b) manage the calls as provided for in the annual work plan and the administration

of the agreements or decisions, including their coordination;

(c) provide to the Members and the other bodies of the BBI Joint Undertaking all

relevant information and support necessary for them to perform their duties as

well as responding to their specific requests;

182

(d) act as the secretariat of the bodies of the BBI Joint Undertaking and provide

support to any advisory group set up by the Governing Board.

10 - Scientific Committee

1. The Scientific Committee shall consist of no more than fifteen members. It shall elect

a chairperson from amongst its members.

2. The members shall reflect a balanced representation of world-wide recognised experts

from academia, industry, small and medium enterprises, non-governmental

organisations and regulatory bodies. Collectively, the Scientific Committee members

shall have the necessary scientific competencies and expertise covering the technical

domain needed to make science-based recommendations to the BBI Joint Undertaking.

3. The Governing Board shall establish the specific criteria and selection process for the

composition of the Scientific Committee and shall appoint its members. The

Governing Board shall take into consideration the potential candidates proposed by the

BBI States Representatives Group.

4. The Scientific Committee shall carry out the following tasks:

(a) advise on the scientific priorities to be addressed in the annual work plans;

(b) advise on the scientific achievements described in the annual activity report.

5. The Scientific Committee shall meet at least twice a year. The meetings shall be

convened by its chairperson.

6. The Scientific Committee may, with the agreement of the chairperson, invite other

persons to attend its meetings.

7. The Scientific Committee shall adopt its own rules of procedure.

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11 - States Representatives Group

1. The BBI States Representatives Group shall consist of one representative of each

Member State and of each country associated to the Horizon 2020 Framework

Programme. It shall elect a chairperson among its members.

2. The States Representatives Group shall meet at least twice a year. The meetings shall

be convened by its chairperson. The Executive Director and the chairperson of the

Governing Board or their representatives shall attend the meetings.

The chairperson of the States Representatives Group may invite other persons to attend

its meetings as observers, in particular representatives of regional authorities of the

Union, representatives of civil society or representatives of SME associations.

3. The States Representatives Group shall be consulted and, in particular, review

information and provide opinions on the following matters:

(a) programme progress in the BBI Joint Undertaking and achievement of its targets

including the calls and proposals evaluation process;

(b) updating of strategic orientation;

(c) links to the Horizon 2020 Framework Programme;

(d) annual work plans;

(e) involvement of SMEs.

184

4. The States Representatives Group shall also provide information to and act as an

interface with the BBI Joint Undertaking on the following matters:

(a) the status of relevant national or regional research and innovation programmes

and identification of potential areas of cooperation, including deployment of

relevant technologies, to allow synergies and avoid overlaps;

(b) specific measures taken at national or regional level with regard to dissemination

events, dedicated technical workshops and communication activities.

(c) specific measures taken at national or regional level with regard to deployment

activities in relation to the Joint Technology Initiative on Bio-based Industries.

5. The States Representatives Group may issue, on its own initiative, recommendations

or proposals to the Governing board on technical, managerial and financial matters as

well as on annual plans, in particular when those matters affect national or regional

interests.

The Governing board shall inform without undue delay the States Representatives

Group of the follow up it has given to such recommendations or proposals, including

the reasoning if they are not followed up.

5a. The States Representatives Group shall receive information on a regular basis,

among others on the participation in indirect actions funded by the BBI Joint

Undertaking, on the outcome of each call and project implementation, on synergies

with other relevant Union programmes, and on the execution of the BBI budget.

6. The States Representatives Group shall adopt its own rules of procedure.

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12 - Sources of financing

1. The BBI Joint Undertaking shall be jointly funded by the Union and the Members

other than the Union or their constituent entities through financial contributions paid in

instalments and contributions consisting of the costs incurred by them in implementing

indirect actions that are not reimbursed by the BBI Joint Undertaking.

2. The administrative costs of the BBI Joint Undertaking shall not exceed EUR 58,5

million and shall be covered through financial contributions divided equally on an

annual basis between the Union and the Members other than the Union. If part of the

contribution for administrative costs is not used, it may be made available to cover the

operational costs of the BBI Joint Undertaking.

3. The operational costs of the BBI Joint Undertaking shall be covered through:

(a) a financial contribution by the Union;

(b) a financial contribution by the Members other than the Union;

(c) in kind contributions by the Members other than the Union or their constituent

entities consisting of the costs incurred by them in implementing indirect actions

less the contribution of the BBI Joint Undertaking and any other Union

contribution to those costs.

4. The financial contribution by the Members other than the Union to the operational

costs referred to in paragraph 3(b) shall be at least EUR 182,50 million over the period

provided for in Article 1 of this Regulation.

5. The resources of the BBI Joint Undertaking entered to its budget shall be composed of

the following contributions:

(a) Members' financial contributions to the administrative costs;

(b) Members' financial contributions to the operational costs;

(c) any revenue generated by the BBI Joint Undertaking;

186

(d) any other financial contributions, resources and revenues.

Any interest yielded by the contributions paid to the BBI Joint Undertaking by its

Members shall be considered to be its revenue.

6. All resources of the BBI Joint Undertaking and its activities shall be devoted to the

objectives set out in Article 2 of this Regulation.

7. The BBI Joint Undertaking shall own all assets generated by it or transferred to it for

the fulfilment of its objectives set out in Article 2 of this Regulation

8. Except when the BBI Joint Undertaking is wound up pursuant to clause 20, any excess

revenue over expenditure shall not be paid to the Members of the BBI Joint

Undertaking.

13 - Financial commitments

Financial commitments of the BBI Joint Undertaking shall not exceed the amount of financial

resources available or committed to its budget by its Members.

14 - Financial year

The financial year shall run from 1 January to 31 December.

187

15 - Operational and financial planning

1. The Executive Director shall submit for adoption to the Governing Board a draft

annual work plan, which shall include a detailed plan of the research and innovation

activities, the administrative activities and the corresponding expenditure estimates for

the coming year. The draft work plan shall also include the estimated value of the

contributions to be made in accordance with clause 12(3)(c).

2. The annual work plan for a particular year shall be adopted by the end of the previous

year. The annual work plan shall be made publicly available.

3. The Executive Director shall prepare the draft annual budget for the following year and

submit it to the Governing Board for adoption.

4. The annual budget for a particular year shall be adopted by the Governing Board by

the end of the previous year.

5. The annual budget shall be adapted in order to take into account the amount of the

Union contribution as set out in the Union budget.

16 - Operational and financial reporting

1. The Executive Director shall report annually to the Governing Board on the

performance of his/her duties in accordance with the Financial rules of the BBI Joint

Undertaking.

Within two months of the closure of each financial year, the Executive Director shall

submit to the Governing Board for approval an annual activity report on the progress

made by the BBI Joint Undertaking in the previous calendar year, in particular in

relation to the annual work plan for that year. That report shall include, inter alia,

information on the following matters:

188

(a) research, innovation and other actions carried out and the corresponding

expenditure;

(b) the actions submitted, including a breakdown by participant type, including

SMEs, and by country;

(c) the actions selected for funding, including a breakdown by participant type,

including SMEs, and by country and indicating the contribution of the BBI Joint

Undertaking to the individual participants and actions.

2. Once approved by the Governing Board, the annual activity report shall be made

publicly available.

3. By 1 March of the following financial year, the accounting officer of the BBI Joint

Undertaking shall send the provisional accounts to the Commission's accounting

officer and the Court of Auditors.

By 31 March of the following financial year, the BBI Joint Undertaking shall send

the report on the budgetary and financial management to the European Parliament,

the Council and the Court of Auditors.

On receipt of the Court of Auditors' observations on the BBI Joint Undertaking's

provisional accounts pursuant to Article 148 of Regulation (EU, Euratom) No

966/2012, the accounting officer shall draw up the BBI Joint Undertaking's final

accounts and the Executive Director shall submit them to the Governing Board for

an opinion.

The Governing Board shall deliver an opinion on the BBI Joint Undertaking's final

accounts.

189

The Executive Director shall, by 1 July following each financial year, send the final

accounts to the European Parliament, the Council, the Commission and the Court of

Auditors, together with the Governing Board's opinion.

The final accounts shall be published in the Official Journal of the European Union

by 15 November of the following year.

The Executive Director shall send the Court of Auditors a reply to its observations

made in its annual report by 30 September. The Executive Director shall also send

this reply to the Governing Board.

The Executive Director shall submit to the European Parliament, at the latter's

request, any information required for the smooth application of the discharge

procedure for the financial year in question, in accordance with Article 165(3) of

Regulation (EU, Euratom) No 966/2012.

▌

17 - Internal audit

The Commission's internal auditor shall exercise the same powers over the BBI Joint

Undertaking as those exercised in respect of the Commission.

18 - Liability of Members and insurance

1. The financial liability of the Members for the debts of the BBI Joint Undertaking shall

be limited to their contribution already made for the administrative costs.

2. The BBI Joint Undertaking shall take out and maintain appropriate insurance.

190

19 - Conflict of interest

1. The BBI Joint Undertaking, its bodies and staff shall avoid any conflict of interest in

the implementation of their activities.

2. The BBI Joint Undertaking Governing Board shall adopt rules for the prevention and

management of conflicts of interest in respect of its Members, bodies and staff. In

those rules provision shall be made to avoid a conflict of interest for the

representatives of the Members serving in the Governing Board.

20 - Winding up

1. The BBI Joint Undertaking shall be wound up at the end of the period defined in

Article 1 of this Regulation.

2. The winding up procedure shall be automatically triggered if the Commission or all

private Members withdraw from the BBI Joint Undertaking.

3. For the purpose of conducting the proceedings to wind up the BBI Joint Undertaking,

the Governing Board shall appoint one or more liquidators, who shall comply with the

decisions of the Governing Board.

4. When the BBI Joint Undertaking is being wound up, its assets shall be used to cover

its liabilities and the expenditure relating to its winding up. Any surplus shall be

distributed among the Members at the time of the winding up in proportion to their

financial contribution to the BBI Joint Undertaking. Any such surplus distributed to

the Union shall be returned to the Union budget.

5. An ad hoc procedure shall be set up to ensure the appropriate management of any

agreement concluded or decision adopted by the BBI Joint Undertaking as well as any

procurement contract with duration longer than its duration.

191

192

P7_TA-PROV(2014)0372

SESAR Joint Undertaking *

European Parliament legislative resolution of 15 April 2014 on the proposal for a Council regulation amending Regulation (EC) No 219/2007 on establishment of a Joint Undertaking to develop the new generation European air traffic management system (SESAR) as regards the extension of the Joint Undertaking until 2024 (COM(2013)0503 – C7-0254/2013 – 2013/0237(NLE))

(Consultation)

The European Parliament,

– having regard to the Commission proposal to the Council (COM(2013)0503),

– having regard to Articles 187 and 188 of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C7-0254/2013),

– having regard to Rule 55 of its Rules of Procedure,

– having regard to the report of the Committee on Industry, Research and Energy and the opinion of the Committee on Transport and Tourism (A7-0062/2014),

1. Approves the Commission proposal as amended;

2. Calls on the Commission to alter its proposal accordingly, in accordance with Article 293(2) of the Treaty on the Functioning of the European Union;

3. Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;

4. Asks the Council to consult Parliament again if it intends to substantially amend the Commission proposal;

5. Instructs its President to forward its position to the Council and the Commission.

193

P7_TC1-NLE(2013)0237

Position of the European Parliament adopted on 15 April 2014 with a view to the adoption of Council regulation amending Regulation (EC) No 219/2007 on the establishment of a Joint Undertaking to develop the new generation European air traffic management system (SESAR) as regards the extension of the Joint Undertaking until 2024

(Text with EEA relevance)

THE COUNCIL OF THE EUROPEAN UNION,

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

Articles 187 and 188 thereof,

Having regard to the proposal from the European Commission,

Having regard to the opinion of the European Parliament1,

Having regard to the opinion of the European Economic and Social Committee2,

Whereas:

1 Position of the European Parliament of 15 April 2014.2 OJ C , , p. .

194

(1) The Single European Sky Air Traffic Management Research and Development project

(the 'SESAR project') aims to modernise the air traffic management ('ATM') in Europe

and represents the technological pillar of the Single European Sky ('SES'). It aims by

2030 to provide the Union with a high performance air traffic control infrastructure

which will enable the safe and environmentally friendly development of air transport.

(2) The SESAR project comprises three interrelated, continuous and evolving

collaborative processes: the definition of the content and priorities, the development of

new technological systems, components and operational procedures of the SESAR

concept and the deployment plans of the next generation of ATM systems contributing

to the achievement of the Single European Sky performance targets.

(3) The first phase of the definition process ran from 2004 to 2008 and delivered the

SESAR ATM Master Plan (D5) which was the base for the first edition of the

European ATM Master plan (the 'ATM Master Plan') endorsed by the Council on the

30th of March 2009. The ATM Master Plan identifies three steps in the SESAR

development process: Time Based operations (Step 1), Trajectory Based Operations

(Step 2) and Performance Based Operations (Step 3). The ATM Master Plan is the

agreed roadmap to bring ATM research and development to the deployment phase.

(4) The SESAR Joint Undertaking (the 'Joint Undertaking') was set up by Regulation (EC)

No 219/20071 of 27 February 2007, for the purpose of managing the activities of the

development process of the SESAR project under the Union’s 2007-2013 financial

perspectives. The main task of the Joint Undertaking is the execution of the ATM

Master Plan.

1 OJ L 64, 2.3.2007, p. 1.

195

(5) The Joint Undertaking’s work programme, covered by the Union’s 2007-2013

financial perspectives, addresses all elements of Step 1 and approximately 80% of Step

2 of the ATM Master Plan. The related activities should be completed by 2016. The

remaining activities of Step 2 and those related to Step 3 should start in 2014 under the

Union’s 2014-2020 financial framework. The cost of these activities has been

estimated at EUR 1.585 billion, including EUR 85 million for exploratory research,

EUR 1.2 billion for applied research and pre-industrial development and EUR 300

million for large-scale demonstrations. Exploratory research activities should be

entirely paid from the Union budget. In this light the Union budget for the execution

of the remaining activities should be supplemented by contributions of industry and

EUROCONTROL, following the same approach taken during the Union's 2007-

2013 financial perspectives.

(6) In accordance with Article 1(2) of Regulation (EC) No 219/2007, the Joint

Undertaking should cease to exist on 31 December 2016 or eight years after an

endorsement by the Council of the European Air Traffic Management Master Plan (the

'ATM Master Plan'), whichever is the earlier. The Commission communicated the

ATM Master Plan to the Council on 14 November 20081 and the Council endorsed it

on 30 March 2009.

(7) The Joint Undertaking fulfils the criteria for public-private partnerships established

under Regulation (EU) No 1291/2013 and Decision (EU) No …/2013 of the Council

of … 2013 establishing the Specific Programme implementing Horizon 2020 (2014-

2020)2 (the 'Horizon 2020 Specific Programme').

(7a) Regulation (EU) No 1291/2013 of the European Parliament and of the Council of

11 December 2013 aims to achieve a greater impact on research and innovation by

combining Horizon 2020 Framework Programme and private-sector funds in

public-private partnerships in key areas where research and innovation can

contribute to the Union's wider competitiveness goals, leverage private investment,

and help tackle societal challenges. Those partnerships should be based on a long-

term commitment, including a balanced contribution from all partners, be

accountable for the achievement of their objectives and be aligned with the Union's

1 OJ C 76, 25.3.2010, p. 28 ▌.2 OJ … [H2020 SP]

196

strategic goals relating to research, development and innovation. The governance

and functioning of those partnerships should be open, transparent, effective and

efficient and give the opportunity to a wide range of stakeholders active in their

specific areas to participate. Union involvement in these partnerships can take the

form of financial contributions to joint undertakings established on the basis of

Article 187 of the Treaty under Decision No 1982/2006/EC.

197

(8) To continue the development of the activities defined in the ATM Master Plan, it is

necessary to extend the duration of the Joint Undertaking until 2024, which reflects the

duration of the Union’s 2014-2020 financial framework and allows 4 additional years

for completion of the Joint Undertaking's Work Programme and the closing of

projects that would be initiated by the end of that financial framework. Such an

extension should therefore allow for the execution of the whole ATM Master Plan

(step 2 and step 3) as it stands today.

(9) Council Regulation (EC) No 1361/2008 of 16 December 2008 amending Regulation

(EC) No 219/2007 on the establishment of a joint undertaking to develop the new

generation European air traffic management system (SESAR)1 indicates that the

mandate of the Executive Director in force on 1 January 2009 shall cease on the date

on which the Joint Undertaking shall cease to exist and that in the event of an

extension of the duration of the Joint Undertaking, a new procedure leading to the

appointment of the Executive Director should be launched in accordance with Article

7(2) of the Annex to Regulation (EC) No 219/2007.

(10) An open call for new members should be organised for the activities to be carried

out under the Union's 2014-2020 financial framework and the membership of

members of the Joint Undertaking who do not contribute to the activities financed

under the Union’s 2014-2020 financial framework should be terminated by 31

December 2016.

1 OJ L 352, 31.12.2008, p. 12 ▌.

198

(10a) The Joint Undertaking should continue to be open to and encourage the widest

possible participation and representation of stakeholders from all Member States,

including small and medium enterprises, through the accession of new members or

other forms of participation. Furthermore, participation should ensure a proper

balance between airspace users, air navigation service providers, airports, military,

professional staff and manufacturers, and offer opportunities to SMEs, academia

and research organisations.

(10b) Horizon 2020 should contribute to the closing of the research and innovation divide

within the Union by promoting synergies with the European Structural and

Investment Funds (ESIF). Therefore the SESAR Joint Undertaking should seek to

develop close interactions with the ESIF, which can specifically help to strengthen

local, regional and national research and innovation capabilities in the area of the

SESAR Joint Undertaking and underpin smart specialisation efforts.

(10c) The SESAR Joint Undertaking should operate in an open and transparent way

providing all relevant information in a timely manner to its appropriate bodies as

well as promoting its activities, including information and dissemination activities to

the wider public. The rules of procedure of the bodies of the Joint Undertaking

should be made publicly available.

(10d) The SESAR Joint Undertaking should also use electronic means managed by the

Commission to ensure openness, transparency and facilitate participation.

Therefore, the calls for proposals launched by the SESAR Joint Undertaking should

also be published on the single portal for participants as well as through other

Horizon 2020 electronic means of dissemination managed by the Commission.

Moreover, relevant data on inter alia proposals, applicants, grants and participants

should be made available by SESAR Joint Undertaking for inclusion in the Horizon

2020 reporting and dissemination electronic systems managed by the Commission,

in an appropriate format and with the periodicity corresponding to the

Commission’s reporting obligations.

(11) The experience acquired from the operation of the Joint Undertaking as a Union body

under Article 185 of Regulation (EC, Euratom) No 1605/20021 shows that the current

1 OJ L 248, 19.6.2002, p. 1.

199

framework of operation is sufficiently flexible and adapted to the needs of the Joint

Undertaking. The Joint Undertaking should operate in accordance with Article 208 of

Regulation (EU, Euratom) No 966/2012 of the European Parliament and the Council

of 25 October 2012 on the financial rules applicable to the general budget of the

Union1, which replaced Article 185 of Regulation No 1605/2002, and should adopt

financial rules which should not depart from the framework Financial Regulation

except where its specific needs so require and with the Commission’s prior consent.

(12) The participation in indirect actions funded by the Joint Undertaking should comply

with Regulation (EU) No … /2013 of the European Parliament and of the Council of

[…] 2013 laying down the rules for the participation and dissemination in "Horizon

2020 - the Framework Programme for Research and Innovation (2014-2020)"2 and no

derogation in accordance with Article 1(3) of Regulation (EU) No [….] should be

required. The SESAR Joint Undertaking should, moreover, ensure consistent

application of these rules based on relevant measures adopted by the Commission.

(12a) With a view to the overall aim of Horizon 2020 to achieve greater simplification and

coherence, all calls for proposals under the SESAR Joint Undertaking should take

into account the duration of Horizon 2020 Framework Programme."

1 OJ L 298, 26.10.2012, p. 1 ▌.2 OJ … [H2020 RfP]

200

(13) In order to ensure uniform conditions for the implementation of this Regulation,

implementing powers should be conferred on the Commission. Those powers should

be exercised in accordance with Regulation (EU) No 182/2011 of the European

Parliament and of the Council of 16 February 2011 laying down the rules and general

principles concerning mechanisms for control by Member States of the Commission's

exercise of implementing powers.

(14) Therefore, Regulation (EC) No 219/2007 should be amended accordingly,

HAS ADOPTED THIS REGULATION:

201

Article 1

Amendments to Regulation (EC) No 219/2007

Regulation (EC) No 219/2007 is amended as follows:

1. Article 1, is amended as follows:

(a) paragraph 2 is replaced by the following:

“2. The Joint Undertaking shall cease to exist on 31 December 2024. In order

to take into account the duration of the Horizon 2020 Framework

Programme, calls for proposals under the Joint Undertaking shall be

launched at the latest by 31 December 2020. In duly justified cases calls

for proposals may be launched until 31 December 2021.”

(b) paragraph 3 is deleted;

(c) in paragraph (5), the fifth indent is replaced by the following:

"- ensuring the supervision of activities related to the development of

common products duly identified in the ATM Master Plan, through grants

to Members and through the most appropriate measures, such as

procurement or the award of grants following calls for proposals to achieve

the programme objectives, in accordance with Regulation (EU) No[….]

laying down the rules for participation and dissemination in 'Horizon 2020

– the Framework Programme for Research and Innovation (2014-2020)'.";

202

2. In Article 2a, paragraph 5 is replaced by the following:

“5. The staff of the Joint Undertaking shall consist of temporary agents and contract

agents. The total period of engagement shall not in any case exceed the duration

of the Joint Undertaking.”;

3. Article 4 is amended as follows:

(a) the first subparagraph of paragraph 2 is replaced by the following:

"2. The ▌Union contribution ▌under the Multiannual Financial Framework

2014-2020 ▌, including EFTA contributions, paid from the budget

appropriations allocated to the Horizon 2020 - The Framework Programme

for Research and Innovation (2014-2020) shall be EUR 585 million1. ";

(aa) the second subparagraph of paragraph 2 is replaced by the following:

"The arrangements for the Union contribution shall be established by means

of a general agreement and annual financial implementation agreements,

which shall be concluded between the Commission, on behalf of the Union,

and the Joint Undertaking. The arrangements shall include provision of data

necessary to ensure that the Commission is able to meet its dissemination and

reporting obligations; including on the single portal for participants as well as

through other Horizon 2020 electronic means of dissemination managed by

the Commission and provisions for the publication of calls for proposals of the

Joint Undertaking also on the single portal for participants as well as through

other Horizon 2020 electronic means of dissemination managed by the

Commission."

(b) paragraph 3 is replaced by the following:

"3. All Union financial contributions to the Joint Undertaking shall cease upon

expiry of the 2014-2020 financial framework unless otherwise decided by

the Council on the basis of a Commission proposal.";

1 Indicative amount in current prices. The amount will depend on the final agreed amount for DG MOVE for the theme 'Smart, green and integrated transport' which will be approved by the Budgetary Authority in the final version of the legislative and financial statement.

203

4. Article 4a is amended as follows:

(a) paragraph 1 is replaced by the following:

"1. The financial rules applicable to the Joint Undertaking shall be adopted by

the Administrative Board after consulting the Commission. They shall not

depart from the framework Financial Regulation unless it is specifically

required for the Joint Undertaking’s operation and the Commission has

given its prior consent.";

(b) paragraph 2 is deleted.

5. Article 5 is amended as follows:

(a) paragraph 2 is replaced by the following:

"The Commission shall adopt the Union position in the Administrative Board."

(b) paragraph 3 is deleted.

(c) paragraph 4 is replaced by the following:

"4. Without prejudice to paragraph 2, the position of the Union in the

Administrative Board as regards decisions concerning significant

modifications of the ATM Master Plan shall be adopted by the

Commission. Those implementing acts shall be adopted in accordance with

the examination procedure referred to in Article 6(2)."

204

6. Article 6 is replaced by the following:

"Article 6

1. The Commission shall be assisted by the Single Sky Committee established by

Regulation (EC) No 549/2004. That committee shall be a committee within the

meaning of Regulation (EU) No 182/2011.

2. Where reference is made to this paragraph, Article 5 of Regulation (EU) No

182/2011 shall apply. Where the committee delivers no opinion, the

Commission shall not adopt the draft implementing act and the third

paragraph of Article 5(4) of Regulation (EU) 182/2011 shall apply."

7. Article 7 is replaced by the following:

"Article 7

Evaluation

By 30 June 2017 the Commission shall carry out, with the assistance of independent

experts, an interim evaluation on the implementation of this Regulation and the

results obtained by the Joint Undertaking, focussing in particular on the impact and

effectiveness of these concrete results achieved under the given term, in accordance

with the ATM Master Plan. The evaluation shall also cover the working methods, as

well as ▌the general financial situation of the Joint Undertaking. The Commission

shall prepare a report on that evaluation which includes conclusions of the

evaluation and observations by the Commission. The Commission shall send that

report to the European Parliament and to the Council by 31 December 2017. The

results of the interim evaluation of the Joint Undertakings shall be taken into

account in the in-depth assessment and in the interim evaluation referred to in

Article 32 of Regulation (EU) No 1291/2013."

8. The Annex is amended in accordance with the Annex to this Regulation.

Article 2

Transitional provisions relating to the mandate of the Executive Director

205

The mandate of the Executive Director in office on 1 January 2009 shall expire on

31 December 2016 at the latest. Upon expiry of that mandate or the replacement of the

Executive Director in office on 1 January 2009, a new procedure leading to the appointment of

the Executive Director shall be launched in accordance with Article 7(2) of the Annex to

Regulation (EC) No 219/2007.

206

Article 3

Transitional provisions relating to the membership in the Joint Undertaking

Membership in the Joint Undertaking shall end by 31 December 2016 with regards to the

Members of the Joint Undertaking who, as of 1 January 2014, do not contribute in kind or in

cash to the costs of the Joint Undertaking's work programme related to the Union’s 2014-2020

financial framework.

Article 4

Transitional provisions relating to the activities of the Joint Undertaking financed under the

Union’s 2007-2013 financial framework

The activities of the Joint Undertaking financed under the 7th Framework Programme for

research and technological development and the Framework Programme on Trans-European

networks initiated until 31 December 2013 shall be terminated by 31 December 2016, with the

exclusion ofproject management activities related to their closing down.

Article 5

Entry into force and application

This Regulation shall enter into force on the twentieth day following that of its publication in

the Official Journal of the European Union.

It shall apply from 1 January 2014.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at

For the Council

The President

207

ANNEX

The Annex is amended as follows:

1. Article 5 is amended as follows :

(a) in paragraph 1, points (m) and (n) are replaced by the following:

"(m) laying down the rules and procedures for awarding the contracts or grants

and any other agreement necessary to implement the ATM Master Plan,

including specific procedures for avoidance of conflict of interest;

(n) deciding on proposals to the Commission to amend the statutes";

(b) in paragraph 2, point (a) is replaced by the following:

"(a) the Administrative Board shall meet at least three times a year.

Extraordinary meetings shall be convened either at the request of one-third

of the members of the Administrative Board representing at least 30 % of

the voting rights, at the request of the Commission or of the Executive

Director;”;

2. In Article 6, paragraph 1 is replaced by the following:

"1. Members of the Joint Undertaking or of the Administrative Board and Joint

Undertaking staff are not allowed to participate in the preparation, evaluation or

the award procedure of financial support from the Joint Undertaking, in

particular following calls for tender or calls for proposals if they own, represent

or have agreements with bodies which are potential candidates or applicants."

3. In Article 7, paragraph 2 is replaced by the following:

"2. The Executive Director shall be engaged as a temporary agent of the Joint

Undertaking under Article 2(a) of the Conditions of employment of other

servants. The Executive Director shall be appointed by the Administrative

Board, from a list of candidates proposed by the Commission, following an open

and transparent selection procedure.

208

For the purpose of concluding the contract with the Executive Director, the Joint

Undertaking shall be represented by the Chairperson of the Administrative Board.

The term of office of the Executive Director shall be five years. By the end of that

period, the Commission shall undertake an assessment that takes into account an

evaluation of the performance of the Executive Director and the Joint Undertaking's

future tasks and challenges.

The Administrative Board, acting on a proposal from the Commission, which takes

into account the assessment referred to in the third subparagraph of this paragraph,

may extend once the term of office of the Executive Director for no more than five

years.

An Executive Director whose term of office has been extended may not participate in

another selection procedure for the same post at the end of the overall period.

The Executive Director may be removed from office only upon a decision of the

Administrative Board acting on a proposal from the Commission.";

4. In Article 9, paragraph 1 is replaced by the following:

"In order to carry out the tasks defined in Article 1(5) of this Regulation, the Joint

Undertaking may conclude specific agreements with and award grants to its members,

in accordance with the applicable financial regulations.";

209

5. Article 10 is replaced by the following:

"Article 10

Contracts and grants

1. Notwithstanding the provisions of Article 9, the Joint Undertaking may conclude

service and supply contracts or grant agreements with undertakings or a

consortium of undertakings, in particular to carry out the tasks provided for in

Article 1(5) of this Regulation.

2. The Joint Undertaking shall ensure that the contracts and grant agreements and

agreements referred to in paragraph 1 provide for the right of the Commission to

carry out controls in order to ensure that the financial interests of the Union are

protected.

3. The contracts and grant agreements referred to in paragraph 1 shall include all

appropriate provisions relating to the intellectual property rights referred to in

Article 18. In order to avoid any conflict of interest, members involved in

defining work that is subject to a procurement or grant procedure, including their

staff seconded under Article 8, may not take part in carrying out that work."

210

5a. In Article 12(3), the first subparagraph is replaced by the following:

"The members referred to in the second indent of Article 1(2) shall undertake to pay

a minimum initial contribution of EUR 10 million within a period of one year from

when their accession to the Joint Undertaking is accepted. This amount shall be

reduced to EUR 5 million for members that subscribe to the Joint Undertaking

within 24 months of its constitution or after a call for new membership."

6. In Article 13, paragraph 2 is amended as follows:

"Any interest yielded by the contributions paid by the members of the Joint

Undertaking shall be considered to be revenue of the Joint Undertaking."

7. In Article 16, the introductory part of paragraph 1 is replaced by the following:

“The Joint Undertaking shall draw up its work programme on the basis of the financial

framework referred to in Article 4(2) of this Regulation and on the basis of sound

management and accountability principles setting out clear deliverables and

milestones. It shall consist of:”;

211

8. Article 17 is replaced by the following:

"Article 17

Protection of the Union's financial interests

1. The Joint Undertaking shall take appropriate measures ensuring that, when

actions financed under this Regulation are implemented, the financial interests of

the Union are protected by the application of preventive measures against fraud,

corruption and any other illegal activities, by effective checks and, if

irregularities are detected, by the recovery of the amounts wrongly paid and,

where appropriate, by effective, proportional and deterrent penalties.

2. The Commission or its representatives and the Court of Auditors shall have the

power of audit, on the basis of documents as well as on-the-spot, over all grant

beneficiaries, contractors and subcontractors who have received Union funds.

3. The European Anti-Fraud Office ('OLAF') shall be authorised to carry out on-

the-spot checks and inspections on economic operators concerned directly or

indirectly by such funding in accordance with the procedures laid down in

Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996

concerning on-the-spot checks and inspections carried out by the Commission in

order to protect the European Communities' financial interests against fraud and

other irregularities with a view to establishing that there has been fraud,

corruption or any other illegal activity affecting the financial interests of the

Union in connection with a grant agreement or decision or a contract concerning

Union funding.

4. Without prejudice to paragraphs 1, 2 and 3, cooperation agreements with

international organisations, grant agreements, decisions and contracts resulting

from the implementation of this Regulation shall expressly entitle the

Commission, the Court of Auditors and OLAF to conduct such audits, on-the-

spot checks and inspections.".

9. Article 24 is deleted.

212

_______________

213

P7_TA-PROV(2014)0373

Innovative Medicines Initiative 2 Joint Undertaking *

European Parliament legislative resolution of 15 April 2014 on the proposal for a Council regulation on the Innovative Medicines Initiative 2 Joint Undertaking (COM(2013)0495 – C7-0259/2013 – 2013/0240(NLE))

(Consultation)

The European Parliament,

– having regard to the Commission proposal to the Council (COM(2013)0495),

– having regard to Article 187 and the first paragraph of Article 188 of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C7-0259/2013),

– having regard to Rule 55 of its Rules of Procedure,

– having regard to the report of the Committee on Industry, Research and Energy (A7-0105/2014),

1. Approves the Commission proposal as amended;

2. Calls on the Commission to alter its proposal accordingly, in accordance with Article 293(2) of the Treaty on the Functioning of the European Union;

3. Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;

4. Asks the Council to consult Parliament again if it intends to substantially amend the Commission proposal;

5. Instructs its President to forward its position to the Council and the Commission.

214

P7_TC1-NLE(2013)0240

Position of the European Parliament adopted on 15 April 2014 with a view to the adoption of Council regulation on the Innovative Medicines Initiative 2 Joint Undertaking

THE COUNCIL OF THE EUROPEAN UNION,

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

187 and the first paragraph of Article 188 thereof,

Having regard to the proposal from the European Commission,

Having regard to the opinion of the European Parliament1,

Having regard to the opinion of the Economic and Social Committee2,

Whereas:

(1) Public-private partnerships in the form of Joint Technology Initiatives (JTIs) were

initially provided for in Decision No 1982/2006/EC of the European Parliament and of

the Council of 18 December 2006 concerning the Seventh Framework programme of

the European Community for research, technological development and demonstration

activities (2007-2013)3.

1 Position of the European Parliament of 15 April 2014.2 OJ C […], […], p. […]3 OJ L 412 30.12.2006, p. 1

215

(2) Council Decision No 2006/971/EC of 19 December 2006 concerning the Specific

Programme ‘Cooperation’ implementing the Seventh Framework programme of the

European Community for research, technological development and demonstration

activities (2007-2013)1 identified specific public-private partnerships to be supported,

including a public-private partnership on Innovative Medicines Joint Technology

Initiative between the Union and the European Federation of Pharmaceutical Industries

and Associations (hereinafter "EFPIA").

(3) Europe 2020 Strategy2 underscores the need to develop favourable conditions for

investment in knowledge and innovation so as to achieve smart, sustainable and

inclusive growth in the Union. Both the European Parliament and the Council have

endorsed this strategy.

(4) Regulation (EU) No 1291/2013 of the European Parliament and of the Council of

11 December 2013 establishing Horizon 2020 - The Framework Programme for

Research and Innovation (2014-2020)3 aims to achieve a greater impact on research

and innovation by combining Horizon 2020 Framework Programme and private sector

funds in public-private partnerships in key areas where research and innovation can

contribute to the Union's wider competitiveness goals, leverage private investment,

and help tackle societal challenges. Those partnerships should be based on a long-

term commitment, including a balanced contribution from all partners, be

accountable for the achievement of their objectives and be aligned with the Union's

strategic goals relating to research, development and innovation. The governance

and functioning of those partnerships should be open, transparent, effective and

efficient and give the opportunity to a wide range of stakeholders active in their

specific areas to participate. Union involvement in those partnerships could take the

form of financial contributions to joint undertakings established on the basis of Article

187 of the Treaty under Decision No 1982/2006/EC.

1 OJ L 400 30.12.2006, p. 862 COM(2010)2020 final3 OJ L 347, 20.12.2013, p. 104 [H2020 FP]

216

(5) In accordance with Regulation (EU) No 1291/2013 and Council Decision

2013/743/EU of 3 December 2013 establishing the Specific Programme implementing

Horizon 2020 (2014-2020)1 further support should be provided to joint undertakings

established under Decision No 1982/2006/EC under the conditions specified in

Council Decision 2013/743/EU.

(6) The Innovative Medicines Initiative (hereinafter ''IMI'') Joint Undertaking set up by

Regulation (EC) No 73/2008 of the Council of 20 December 2007 setting up the IMI

Joint Undertaking2 has demonstrated the effective mobilisation of resources by

bringing together several partners from the pharmaceutical industry, academia, small

and medium-sized enterprises (hereinafter ''SMEs''), patient organisations and

regulators.

(7) It has also stepped up cooperation between stakeholders in the health research and

innovation field by allowing access to other partners’ expertise and increasing the

collaboration between the pharmaceutical industry and other stakeholders in the Union

by developing comprehensive research agendas and horizontal policy coordination. No

other European or national programme has enabled cross-company collaboration

within the pharmaceutical sector on the scale that has been achieved by IMI. The

interim evaluation of the IMI Joint Undertaking3 underlined that it enables mutual

learning and provides the opportunity to improve the reciprocal understanding of the

stakeholders, which benefits all parties and has significantly contributed to the

transition towards an open innovation model in biopharmaceutical research.

(7a) The IMI2 Joint Undertaking should seek to foster the capacity of smaller actors

such as research organisations, universities and SMEs for participating in open

innovation models and to promote the involvement of small and medium-sized

enterprises (SME) in its activities, in line with the objectives.

1 OJ L 347, 20.12.2013, p. 965 [H2020 SP]2 OJ L 30 of 4.2.2008 [FP7 JTI JU Regulation]3 SEC(2011) 1072 final

217

(8) Research related to the future of medicine shall be undertaken in areas where

combination of societal, public health and biomedical industry competitiveness goals

requires pooling of resources and fostering collaboration between the public and

private sectors, with the involvement of SMEs. The scope of the initiative should be

expanded to all areas of life science research and innovation. The areas would be of

public health interest, as identified by the World Health Organisation report on priority

medicines for Europe and the World, which has been updated with the new version

▌released in 2013. The initiative should consequently seek to involve a broader range

of partners, including mid-caps, from different sectors (e.g. biomedical imaging,

medical information technology, diagnostic and/or animal health industries). A wider

participation would help to advance the development of new approaches and

technologies for the prevention, diagnosis and treatment of diseases with high impact

on public health.

(9) The continuation of this initiative should also take into account the experience

acquired from the operations of the IMI Joint Undertaking including the results of its

interim evaluation and stakeholders' recommendations1 and be implemented using a

more fit-for-purpose structure and rules in order to enhance efficiency and ensure

simplification at operational level. To this effect, the Innovative Medicines Initiative 2

(hereinafter ''IMI2'') Joint Undertaking should adopt financial rules specific to its needs

in accordance with Article 209 of Regulation (EU, Euratom) No 966/2012 of the

European Parliament and the Council of 25 October 2012 on the financial rules

applicable to the general budget of the Union2.

(10) The private Members to the IMI2 Joint Undertaking have expressed in writing their

agreement to pursue the research activities in the area of the IMI2 Joint Undertaking

within a structure better adapted to the nature of a public-private partnership. It is

appropriate that the private-sector Members to the IMI2 Joint Undertaking accept the

Statutes contained in the Annex by means of a letter of endorsement.

1 http://ec.europa.eu/research/consultations/life_science_h2020/consultation_en.htm2 OJ L 298 26.10.2012, p. 1.

218

(11) As a means to further develop IMI2 Joint Undertaking's objectives, membership

should be open to other legal entities. Moreover, legal entities interested in supporting

IMI2 Joint Undertaking’s objectives in their specific areas of research should be

offered the possibility to become Associated Partners in the IMI2 Joint Undertaking.

(11a) Any eligible institution may become a participant or a coordinator in the selected

projects.

(12) In order to achieve its objectives, the IMI2 Joint Undertaking should provide financial

support to participants mainly in the form of grants following open and competitive

calls for proposals.

(12a) The participants should be fully informed about the totality of applicable legal and

procedural conditions, including on those laid down on the basis of Article 1(3) of

Regulation (EU) No 1290/2013 [Rules for participation and dissemination in

Horizon 2020] especially regarding eligibility for funding and exploitation and

dissemination of results. These conditions should be consistent, reasonable and

should ensure equitable and fair treatment of participants regarding ownership of

and access to the results generated within IMI2 projects.

(13) Contributions from the private Members should relate to the administrative costs of the

IMI2 Joint Undertaking and, together with the Associated Partners for their specific

area of research, to the co-financing required to carry out research and innovation

actions supported by the IMI2 Joint Undertaking.

(14) Participation in indirect actions funded by the IMI2 Joint Undertaking should comply

with Regulation (EU) No 1290/2013 of the European Parliament and of the Council of

11 December 2013 laying down the rules for the participation and dissemination in

"Horizon 2020 - the Framework Programme for Research and Innovation (2014-

2020)"1. The IMI2 Joint Undertaking should, moreover, ensure consistent

application of these rules based on relevant measures adopted by the Commission.

1 OJ L 347, 20.12.2013, p. 81 [H2020 RfP]

219

(14a) The IMI2 Joint Undertaking should also use electronic means managed by the

Commission to ensure openness, transparency and facilitate participation.

Therefore, the calls for proposals launched by the IMI2 Joint Undertaking should

also be published on the single portal for participants as well as through other

Horizon 2020 electronic means of dissemination managed by the Commission.

Moreover, relevant data on inter alia proposals, applicants, grants and participants

should be made available by the IMI2 Joint Undertaking for inclusion in the

Horizon 2020 reporting and dissemination electronic systems managed by the

Commission, in an appropriate format and with the periodicity corresponding to the

Commission’s reporting obligations.

(15) The Union financial contribution should be managed in accordance with the principle

of sound financial management and with the relevant rules on indirect management set

out in Regulation (EU, Euratom) No 966/2012 and Commission delegated Regulation

(EU) No 1268/2012 of 29 October 2012 on the rules of application of Regulation (EU,

Euratom) No 966/20121.

(16) For the purpose of simplification, administrative burdens should be reduced for all

parties. Double audits and disproportionate documentation and reporting should be

avoided. Audits of recipients of Union funds under this Regulation should be carried

out in ▌compliance with Regulation (EU) No 1291/2013 ▌.

(17) The financial interests of the Union and of the other Members of the IMI2 Joint

Undertaking should be protected through proportionate measures throughout the

expenditure cycle, including the prevention, detection and investigation of

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

appropriate, administrative and financial penalties in accordance with Regulation (EU,

Euratom) No 966/2012.

(18) The Commission's internal auditor should exercise the same powers over the IMI2

Joint Undertaking as those exercised in respect of the Commission.

1 OJ L 362 31.12.2012, p. 1

220

(19) In view of the specific nature and the current status of the Joint Undertakings, and in

order to ensure continuity with the 7th Framework Programme, the Joint

Undertakings should continue to be subject to a separate discharge. By way of

derogation from Articles 60(7) and 209 of Regulation (EU, Euratom) No 966/2012,

discharge for the implementation of the budget of the IMI2 Joint Undertaking

should therefore be given by the European Parliament on the recommendation of

the Council. Hence, the reporting requirements set out in Article 60(5) should not

apply to the contribution of the Union to the IMI2 Joint Undertaking but they

should be aligned to the extent possible to the ones foreseen for bodies under Article

208 of Regulation (EU, Euratom) No 966/2012 ▌. The auditing of accounts and of the

legality and regularity of the underlying transactions should be undertaken by the

Court of Auditors.

(19a) The IMI2 Joint Undertaking should operate in an open and transparent way

providing all relevant information in a timely manner to its appropriate bodies as

well as promoting its activities, including information and dissemination activities to

the wider public. The rules of procedure of the bodies of the Joint Undertaking

should be made publicly available.

221

(19b) The Scientific Panel for Health has been set up by Horizon 2020 as a science-led

stakeholder platform in order to elaborate scientific input, provide a coherent

scientific focused analysis of research and innovation bottlenecks and opportunities

related to the Horizon 2020 societal challenge on health, demographic change and

well-being, contribute to the definition of its research and innovation priorities and

encourage Union-wide scientific participation. Through active cooperation with

stakeholders, it helps to build capabilities and to foster knowledge sharing and

stronger collaboration across the Union in this field. The IMI2 Joint Undertaking

should, therefore, collaborate and exchange information with it, where appropriate.

(20) In accordance with the principles of subsidiarity and proportionality as set out in

Article 5 of the Treaty on European Union, the objectives of the IMI2 Joint

Undertaking in strengthening industrial research and innovation across the Union

cannot be sufficiently achieved by the Member States and can therefore, by reason of

avoiding duplication, retaining critical mass and ensuring that public financing is used

in an optimal way, be better achieved by the Union. This Regulation confines itself to

the minimum required in order to achieve those objectives and does not go beyond

what is necessary for that purpose.

(20a) Horizon 2020 should contribute to the closing of the research and innovation divide

within the Union by promoting synergies with the European Structural and

Investment Funds (ESIF). Therefore the IMI2 Joint Undertaking should seek to

develop close interactions with the ESIF, which can specifically help to strengthen

local, regional and national research and innovation capabilities in the area of the

IMI2 Joint Undertaking and underpin smart specialisation efforts.

222

(21) The IMI Joint Undertaking was set up for a period up to 31 December 2017. The IMI2

Joint Undertaking should provide continued support to the Innovative Medicines

research programme by implementing the remaining actions initiated under

Regulation (EC) No 73/2008 in accordance with Regulation (EC) No 73/2008. The

transition from the IMI Joint Undertaking to the IMI2 Joint Undertaking should be

aligned and synchronized with the transition from the Seventh Framework programme

to the Horizon 2020 Framework Programme to ensure optimal use of the funding

available for research. In the interest of legal certainty and clarity, Council Regulation

(EC) No 73/2008 should therefore be repealed and transitional provisions should be set

out.

(21a) With a view to the overall aim of Horizon 2020 to achieve greater simplification and

coherence, all calls for proposals under IMI2 should take into account the duration

of the Horizon 2020 Framework Programme.

HAS ADOPTED THIS REGULATION:

223

Article 1

Establishment

1. For the implementation of the Joint Technology Initiative on Innovative Medicines, a

joint undertaking within the meaning of Article 187 of the Treaty (hereinafter ''IMI2 Joint

Undertaking''), is established until 31 December 2024. In order to take into account the

duration of the Horizon 2020 Framework Programme, calls for proposals under IMI2

shall be launched at the latest by 31 December 2020. In duly justified cases calls for

proposals may be launched until 31 December 2021.

2. The IMI2 Joint Undertaking shall replace and succeed the IMI Joint Undertaking as

established by Regulation (EC) No 73/2008.

3. The IMI2 Joint Undertaking shall constitute a body entrusted with the implementation of

a public-private partnership referred to in Article 209 of Regulation (EU, Euratom)

No 966/2012.

4. The IMI2 Joint Undertaking shall have legal personality. In each of the Member States, it

shall have the most extensive legal capacity accorded to legal persons under the laws of

those Member States. It may, in particular, acquire or dispose of movable and immovable

property and may be party to legal proceedings.

5. The seat of the IMI2 Joint Undertaking shall be located in Brussels, Belgium.

6. The Statutes of the IMI2 Joint Undertaking are set out in the Annex.

224

Article 2

Objectives

The IMI 2 Joint Undertaking shall have the following objectives:

(a) to support, according to Article 25 of Regulation (EU) No 1291/2013/EU, the

development and implementation of pre-competitive research and of innovation

activities of strategic importance to the Union's competitiveness and industrial

leadership or to address specific societal challenges in particular part II and III of

Council Decision 2013/743/EU, and in particular to improving European citizens' health

and wellbeing.

(b) to contribute to the objectives of the Joint Technology Initiative on Innovative Medicines,

in particular to:

(i) increase the success rate in clinical trials of priority medicines identified by the

World Health Organisation;

(ii) where possible, reduce the time to reach clinical proof of concept in medicine

development, such as for cancer, immunological, respiratory, neurological and

neurodegenerative diseases;

(iii) develop new therapies for diseases for which there is a high unmet need, such as

Alzheimer's disease and limited market incentives, such as antimicrobial resistance;

(iv) develop diagnostic and treatment biomarkers for diseases clearly linked to clinical

relevance and approved by regulators;

(v) reduce the failure rate of vaccine candidates in phase III clinical trials through new

biomarkers for initial efficacy and safety checks;

(vi) improve the current drug development process by providing support for the

development of tools, standards and approaches to assess efficacy, safety and

quality of regulated health products.

225

Article 3

Union contribution

1. The maximum Union contribution, including EFTA appropriations, to the IMI2 Joint

Undertaking to cover administrative costs and operational costs shall be EUR 1 638

million which shall consist of the following:

(a) up to EUR 1 425 million to match the contribution of EFPIA, or its constituent

entities or their affiliated entities;

(b) up to EUR 213 million to match additional contributions from other Members,

Associated Partners, or from their constituent or their affiliated entities.

The contribution of the Union shall be paid from the appropriations in the general budget

of the Union allocated to the Horizon 2020 Specific Programme implementing the

Horizon 2020 Framework Programme in accordance with Article 58(1)(c)(iv) and

Articles 60 and 61 of Regulation (EU, Euratom) No 966/2012 for bodies referred to in

Article 209 of that Regulation.

2. The arrangements for the Union financial contribution shall be set out in a delegation

agreement and annual transfer of funds agreements to be concluded between the

Commission, on behalf of the Union, and the IMI2 Joint Undertaking.

3. The delegation agreement referred to in paragraph 2 shall address the elements set out in

Article 58(3) and Articles 60 and 61 of Regulation (EU, Euratom) No 966/2012 and in

Article 40 of the Commission delegated Regulation (EU) No 1268/2012 as well as inter

alia the following:

(a) the requirements for the IMI2 Joint Undertaking's contribution regarding the

relevant performance indicators referred to in Annex II to Council Decision

2013/743/EU;

226

(b) the requirements for the IMI2 Joint Undertaking's contribution in view of the

monitoring referred to in Annex III to Council Decision 2013/743/EU;

(c) the specific performance indicators related to the functioning of the IMI2 Joint

Undertaking;

(d) the arrangements regarding the provision of data necessary to ensure that the

Commission is able to meet its dissemination and reporting obligations including

on the single portal for participants as well as through other Horizon 2020

electronic means of dissemination managed by the Commission;

(da) provisions for the publication of calls for proposals of the IMI2 Joint

Undertaking also on the single portal for participants as well as through other

Horizon 2020 electronic means of dissemination managed by the Commission;

(e) the use of and changes to human resources, in particular the recruitment by function

group, grade and category, the reclassification exercise and any changes to the

number of staff members.

Article 4

Contributions of Members other than the Union and of Associated Partners

1. EFPIA shall make or arrange for its constituent entities or their affiliated entities to make

contributions of at least EUR 1 425 million. Other Members other than the Union or

Associated Partners shall make, or arrange for their constituent entities or their affiliated

entities to make, the contributions corresponding to the amounts they have committed

when becoming a Member or an Associated Partner.

227

2. The contribution referred to in paragraph 1 shall consist of contributions to the IMI2 Joint

Undertaking as laid down in Clause 13(2), Clause 13(3)(b) and Clause 13(3)(c) of the

Statutes contained in the Annex. In-kind contributions consisting of costs incurred in

third countries other than countries associated to Horizon 2020 shall be justified and

relevant to the objectives set out in Article 2, and shall not exceed 30% at the level of

the IMI2 programme of the eligible costs incurred by the Members other than the

Union and the Associated Partners.

3. The Members other than the Union and Associated Partners shall report each year by

31 January to the Governing Board of the IMI2 Joint Undertaking on the value of the

contributions referred to in paragraph 2 made in each of the previous financial years. The

States Representatives Group shall also be informed in a timely manner.

4. For the purpose of valuing the contributions referred to in Clause 13(3)(b) of the Statutes

contained in the Annex, the costs shall be determined according to the usual cost

accounting practices of the entities concerned, to the applicable accounting standards of

the country where each entity is established, and to the applicable International

Accounting Standards/International Financial Reporting Standards. The costs shall be

certified by an independent external auditor appointed by the entity concerned. The

valuation method may be verified by the IMI2 Joint Undertaking should there be any

uncertainty arising from the certification. In case of remaining uncertainties, it may be

audited by the IMI2 Joint Undertaking.

5. The Commission may terminate, proportionally reduce or suspend the Union financial

contribution to the IMI2 Joint Undertaking or trigger the winding up procedure referred to

in Clause 21(2) of the Statutes contained in the Annex if those Members and Associated

Partners, their constituent entities or their affiliated entities do not contribute, contribute

only partially or contribute late with regard to the contributions referred to in paragraph 2.

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Article 5

Financial rules

Without prejudice to Article 12, the IMI2 Joint Undertaking shall adopt its specific Financial

rules in accordance with Article 209 of Regulation (EU, Euratom) No 966/2012 and Regulation

(EU) No … [Delegated Regulation on the model Financial Regulation for PPPs].

Article 6

Staff

1. The Staff Regulations of Officials of the Union and the Conditions of Employment of

Other Servants of the European Union as laid down by Council Regulation (EEC,

Euratom, ECSC) No 259/681 and the rules adopted by agreement between the institutions

of the Union for giving effect to those Staff Regulations and those Conditions of

Employment of Other Servants shall apply to the staff employed by the IMI2 Joint

Undertaking.

2. The Governing Board shall exercise, with respect to the staff of the IMI2 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 Contract

of Employment (hereinafter "the appointing authority powers").

The Governing Board shall adopt, in accordance with Article 110 of the Staff

Regulations, a decision based on its Article 2(1) and Article 6 of the Conditions of

Employment delegating the relevant appointing authority powers to the Executive

Director and defining the conditions under which this delegation of powers can be

suspended. The Executive Director shall be authorised to sub-delegate those powers.

Where exceptional circumstances so require, the Governing Board may by way of a

decision temporarily suspend the delegation of the appointing authority powers to the

Executive Director and those sub-delegated by the latter and exercise them itself or

delegate them to one of its members or to a staff member of the Joint Undertaking other

than the Executive Director.

1 OJ 56, 4.3.1968, p. 1.

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3. The Governing Board shall adopt appropriate implementing rules to the Staff Regulations

and the Conditions of Employment in accordance with Article 110 of the Staff

Regulations.

4. The staff resources shall be determined by the staff establishment plan of the IMI2 Joint

Undertaking indicating the number of temporary posts by function group and by grade

and the number of contract staff expressed in full-time equivalents, in line with its annual

budget.

5. The staff of the IMI2 Joint Undertaking shall consist of temporary staff and contract staff.

6. All costs related to the staff shall be borne by the IMI2 Joint Undertaking.

Article 7

Seconded national experts and trainees

1. The IMI2 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 information on staff as referred to in Article 6(4)

of this Regulation in line with the annual budget.

2. The Governing Board shall adopt a decision laying down rules on the secondment of

national experts to the IMI2 Joint Undertaking and on the use of trainees.

Article 8

Privileges and Immunities

The Protocol on the Privileges and Immunities of the Union shall apply to the IMI2 Joint

Undertaking and its staff.

Article 9

Liability of the IMI2 Joint Undertaking

1. The contractual liability of the IMI2 Joint Undertaking shall be governed by the relevant

contractual provisions and by the law applicable to the agreement, decision or contract in

question.

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2. In the case of non-contractual liability, the IMI2 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 IMI2 Joint Undertaking in respect of the liability referred to in

paragraphs 1 and 2 and the costs and expenses incurred in connection therewith shall be

considered as expenditure of the IMI2 Joint Undertaking and shall be covered by the

resources of the IMI2 Joint Undertaking.

4. The IMI2 Joint Undertaking shall be solely responsible for meeting its obligations.

Article 10

Jurisdiction of the Court of Justice and applicable law

1. The Court of Justice shall have jurisdiction ▌:

▌

(b) pursuant to any arbitration clause contained in agreements, decisions or contracts

concluded by the IMI2 Joint Undertaking;

(c) in disputes relating to compensation for damage caused by the staff of the IMI2

Joint Undertaking in the performance of their duties;

(d) in any dispute between the IMI2 Joint Undertaking and its servants within the limits

and under the conditions laid down in the Staff Regulations of Officials and the

Conditions of Employment of Other Servants of the European Union.

2. Regarding any matter not covered by this Regulation or by other acts of Union law, the

law of the State where the seat of the IMI2 Joint Undertaking is located shall apply.

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Article 11

Evaluation

1. By 30 June 2017 the Commission shall carry out, with the assistance of independent

experts, an interim evaluation of the IMI2 Joint Undertaking. The Commission shall

prepare a report on that evaluation which includes conclusions of the evaluation and

observations by the Commission. The Commission shall send that report to the

European Parliament and to the Council by 31 December 2017. The results of the interim

evaluation of IMI2 shall be taken into account in the in-depth assessment and in the

interim evaluation referred to in Article 32 of Regulation (EU) No 1291/2013.

2. On the basis of the conclusions of the interim evaluation referred to in paragraph 1 the

Commission may act in accordance with Article 4(5) or take any other appropriate action.

3. Within six months after the winding up of the IMI2 Joint Undertaking, but no later than

two years after the triggering of the winding up procedure referred to in Clause 21 of the

Statutes contained in the Annex, the Commission shall conduct a final evaluation of the

IMI2 Joint Undertaking. The results of that final evaluation shall be presented to the

European Parliament and to the Council.

Article 12

Discharge

By way of derogation from Articles 60(7) and 209 of Regulation No 966/2012, the

discharge for the ▌implementation of the budget of the IMI2 Joint Undertaking shall be

▌given by the European Parliament, upon recommendation of the Council ▌in

accordance with the procedure provided for in the financial rules of the ▌IMI2 Joint

Undertaking ▌.

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Article 13

Ex-post audits

1. Ex-post audits of expenditure on indirect actions shall be carried out by the IMI2 Joint

Undertaking in accordance with Article 29 of Regulation (EU) No 1291/2013 as part of

the Horizon 2020 Framework Programme indirect actions.

2. ▌The Commission may decide to carry out the audits referred to in paragraph 1 on those

participants which have received funding from the IMI2 Joint Undertaking. It shall do so

in accordance with the applicable rules, in particular Regulation (EU, Euratom) No

966/2012, Regulation (EU) No 1291/2013 and Regulation (EU) No 1290/2013.

Article 14

Protection of the financial interests of the Members

1. ▌The IMI2 Joint Undertaking shall grant Commission staff and other persons authorised

by the Joint Undertaking or the Commission, as well as the Court of Auditors, access to

its sites and premises and to all the information, including information in electronic

format, needed in order to conduct their audits.

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2. The European Anti-fraud Office (OLAF) may carry out investigations, including on-the-

spot checks and inspections, in accordance with the provisions and procedures laid down

in Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the

Council ▌1 and Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996

concerning on-the-spot checks and inspections carried out by the Commission in order to

protect the European Communities' financial interests against fraud and other

irregularities2 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 or decision or a contract funded under this Regulation.

3. Without prejudice to paragraphs 1 and 2 contracts, agreements and decisions resulting

from the implementation of this Regulation shall contain provisions expressly

empowering:

(a) the IMI2 Joint Undertaking and OLAF to conduct such audits and investigations,

according to their respective competences.

(b) the Commission and the Court of Auditors to conduct such audits on the recipients

of funding from the IMI2 Joint Undertaking according to their respective

competences.

4. The IMI2 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 IMI2 Joint Undertaking shall accede to the Inter-institutional Agreement of 25 May

1999 between the European Parliament, the Council and the Commission concerning

internal investigations by OLAF3. The IMI2 Joint Undertaking shall adopt the necessary

measures needed to facilitate internal investigations conducted by OLAF.

1 OJ L 248, 18.9.2013, p. 1.2 OJ L 292, 15.11.1996, p. 2-53 OJ L 136 from 31.5.1999, p. 1

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Article 15

Confidentiality

Without prejudice to Article 16, the IMI2 Joint Undertaking shall ensure the protection of

sensitive information whose disclosure could damage the interests of its Members or of

participants in the activities of the IMI2 Joint Undertaking.

Article 16

Transparency

1. Regulation (EC) No 1049/2001 of the European Parliament and of the Council of

30 May 2001 regarding public access to European Parliament, Council and Commission

documents1, shall apply to documents held by the IMI2 Joint Undertaking.

2. The IMI2 Joint Undertaking Governing Board may adopt practical arrangements for

implementing Regulation (EC) No 1049/2001.

3. Without prejudice to Article 10, decisions taken by the IMI2 Joint Undertaking pursuant

to Article 8 of Regulation (EC) No 1049/2001 may form the subject of a complaint to the

Ombudsman under the conditions laid down in Article 228 of the Treaty.

Article 17

Rules for participation and dissemination

Regulation (EU) No 1290/2013 shall apply to the actions funded by the IMI2 Joint

Undertaking. In accordance with that Regulation, the IMI2 Joint Undertaking shall be

considered as a funding body and shall provide financial support to indirect actions as set out in

Clause 1 of the Statutes contained in the Annex.

1 OJ L 145 from 31.05.2001

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Article 18

Support from the host State

An administrative agreement may be concluded between the IMI2 Joint Undertaking and the

State where its seat is located concerning privileges and immunities and other support to be

provided by this State to the IMI2 Joint Undertaking.

Article 19

Repeal and transitional provisions

1. Regulation (EC) No 73/2008 is repealed ▌.

2. Without prejudice to paragraph 1, actions initiated under Regulation (EC) No 73/2008

and financial obligations related to those actions shall continue to be governed by that

Regulation until their completion.

The actions arising from calls for proposals provided for in Annual Implementation Plans

adopted under Regulation (EC) No 3/2008 shall also be regarded as actions initiated

under that Regulation.

The interim evaluation referred to in Article 11(1) shall include a final evaluation of the

IMI Joint Undertaking operations under Regulation (EC) No 73/2008.

3. This Regulation shall not affect the rights and obligations of staff engaged under

Regulation (EC) No 73/2008.

The employment contracts of staff referred to in the first subparagraph may be renewed

under this Regulation in accordance with the Staff Regulations.

The Executive Director appointed on the basis of Regulation No 73/2008 shall, for the

remaining period of term of office, be assigned to the functions of the Executive Director

as provided for in this Regulation with effect from the date of entry into force of this

Regulation. The other conditions of contract shall remain unchanged.

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4. Unless otherwise agreed between the Members of the IMI Joint Undertaking pursuant to

Regulation (EC) No 73/2008, all rights and obligations including assets, debts or

liabilities of the Members of the IMI Joint Undertaking pursuant to that Regulation are

transferred to the Members of the IMI2 Joint Undertaking pursuant to this Regulation.

5. Any unused appropriations under Regulation (EC) No 73/2008 shall be transferred to the

IMI2 Joint Undertaking.

Article 20

Entry into force

This Regulation shall enter into force on the twentieth day following that of its publication in

the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at

For the Council

The President

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ANNEX

STATUTES OF THE IMI2 JOINT UNDERTAKING

1 - Tasks

The IMI2 Joint Undertaking shall carry out the following tasks:

(a) to mobilise the public and private sector resources needed to achieve the objectives of

IMI2 Joint Undertaking;

(b) to regularly review and make any necessary adjustments to the Strategic Research

Agenda of the IMI2 Joint Undertaking in light of scientific developments occurring

during its implementation;

(c) to establish and develop close and long-term cooperation between the Union, other

Members, Associated Partners, and the other stakeholders such as other industries,

regulatory bodies, patient organisations, academia and clinical centres, as well as

cooperation between industry and academia;

(d) to facilitate coordination with European, national and international activities in this area,

and to communicate and interact with the Member States and the countries associated

with Horizon 2020 Framework Programme;

(e) to effectively support pre-competitive research and innovation in life sciences mainly

through grants; in case clinical trials are necessary, priority shall be given to phases I

and II; phases III and IV shall be funded in justified cases where it is demonstrated

that unmet medical needs exist, and if they are either non competitive or pre-

competitive;

(f) to define and carry out the IMI2 Joint Undertaking annual work plan mainly through

competitive calls for proposals;

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(g) to initiate competitive calls for proposals and any other necessary procedure for funding,

to evaluate proposals, to award funding to projects according to the applicable rules,

within the limits of available funds;

(ga) to publish information on the projects, including participating entities and the amount

of the financial contribution of the IMI2 Joint Undertaking per participant;

(h) information, communication, exploitation and dissemination activities by applying

mutatis mutandis the provisions of Article 29 of the Regulation (EU) No 1291/2013,

including making the detailed information on results from calls for proposals available

and accessible in a common H2020 e-database;

(ha) liaising with a broad range of stakeholders including research organisations and

universities;

(i) to organise regular communication, including at least one meeting annually with interest

groups and with its stakeholders via the Stakeholder Forum to ensure openness and

transparency of the research activities of the IMI2 Joint Undertaking ▌;

(j) any other task needed to achieve the objectives referred to in Article 2 of this Regulation.

2 - Members and Associated Partners

1. The Members of the IMI2 Joint Undertaking shall be the following:

(a) the Union, represented by the Commission;

(b) upon acceptance of these Statutes by means of a letter of endorsement, the

European Federation of Pharmaceutical Industries and Associations (hereinafter

''EFPIA'').

1a. Constituent entities are the entities that constitute each Member of the Joint

Undertaking other than the Union, according to that Member's Statutes.

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2. Provided that it contributes to the funding referred to in Clause 13 of these Statutes to

achieve the objectives of the IMI2 Joint Undertaking set out in Article 2 of this

Regulation and accepts these Statutes, any legal entity that directly or indirectly supports

research and innovation in a Member State or in a country associated with the Horizon

2020 Framework Programme may apply to become a Member of the IMI2 Joint

Undertaking.

3. Upon acceptance of these Statutes by means of a letter of endorsement, any legal entity

other than a Member or a constituent entity of a Member or any affiliated entity of either,

supporting the objectives of the IMI2 Joint Undertaking in its specific area of research, in

a Member State or in a country associated with the Horizon 2020 Framework Programme,

may apply to join IMI2 as an Associated Partner. The letter of endorsement shall detail

the scope of the association in terms of content, of activities and duration.

4. Associated Partners shall contribute like Members other than the Union to the IMI2 Joint

Undertaking's operational costs, in accordance with Clause 13 of these Statutes.

The letter of endorsement shall detail the Associated Partners’ contribution to IMI2 Joint

Undertaking and that the Union will match, in accordance with Articles 3 and 4 of this

Regulation.

3 - Changes to membership and to association

1. Any application for becoming a Member or an Associated Partner to the IMI2 Joint

Undertaking shall be addressed to the Governing Board, accompanied in the case of

application for becoming a Member by a proposal to adapt the composition of the

Governing Board set out in Clause 5.

2. The Governing Board shall assess the application taking into account the relevance and

the potential added value of the applicant for the achievement of the objectives of the

IMI2 Joint Undertaking. It shall then decide on the application.

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3. Any Member or Associated Partner may terminate its membership or association to the

IMI2 Joint Undertaking. The termination shall become effective and irrevocable six

months after notification to the other Members and Associated Partners. As of then, the

former Member or Associated Partner shall be discharged from any obligations other than

those approved or incurred by the IMI2 Joint Undertaking prior to terminating the

membership or participation.

4. Membership of or association to the IMI2 Joint Undertaking may not be transferred to a

third party without prior agreement of the Governing Board.

5. The Commission shall publish on its website immediately upon any change to

membership or association pursuant to this Clause an updated list of Members and

Associated Partners of the IMI2 Joint Undertaking together with the date when such

change takes effect.

4 – Organization of the IMI2 Joint Undertaking

1. The bodies of the IMI2 Joint Undertaking shall be:

(a) the Governing Board;

(b) the Executive Director;

(c) the Scientific Committee;

(d) the States Representatives Group;

(e) the Stakeholder Forum.

2. The Scientific Committee, the States Representatives Group and the Stakeholder Forum

shall be advisory bodies to the IMI2 Joint Undertaking.

5 – Composition of the Governing Board

The Governing Board shall be composed of 5 representatives per Member.

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6 – Functioning of the Governing Board

1. Without prejudice to paragraph 2, each Member shall have a percentage out of 100 voting

rights corresponding to the percentage of its contribution to the IMI2 Joint Undertaking.

The Commission shall hold 50% of the voting rights. The vote of the Commission shall

be indivisible. Each Member may allocate its voting rights among its representatives in

the Governing Board. The Members shall use their best efforts to achieve consensus.

Failing consensus, the Governing Board shall take its decisions by a majority of at least

75% of all votes including the votes of those who are not in attendance.

The chairperson of the Governing Board shall be appointed on a rotating annual basis by

each the Union and the other Members, in turn.

2. The Governing Board shall hold its ordinary meetings at least twice a year. It may hold

extraordinary meetings at the request of any Member or at the request of the chairperson.

The meetings of the Governing Board shall be convened by its chairperson and shall

normally take place at the seat of the IMI2 Joint Undertaking.

The Executive Director shall take part in the deliberations, but shall have no voting rights.

The Governing Board shall invite any Associated Partner to take part in its deliberations

for those points on the agenda that concern its association. Associated Partners shall have

no voting rights.

The chairperson of the States Representatives Group shall attend meetings of the

Governing Board and take part in the deliberations but shall have no voting rights.

The chairperson of the Scientific Committee shall have the right, whenever issues

falling within its tasks are discussed, to attend meetings of the Governing Board as an

observer and take part in its deliberations, but shall have no voting rights.

The Governing Board may invite, on a case-by-case basis, other persons to attend its

meetings as observers, in particular representatives of regional authorities of the Union.

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The representatives of the Members shall not be personally liable for actions they have

undertaken in their capacity as representatives on the Governing Board.

The Governing Board shall adopt its own rules of procedure.

7 – Tasks of the Governing Board

1. The Governing Board shall have overall responsibility for the strategic orientation and the

operations of the IMI2 Joint Undertaking and shall supervise the implementation of its

activities.

1a. The Commission, within its role in the Governing Board, shall seek to ensure

coordination between the activities of the IMI2 Joint Undertaking and the relevant

activities of Horizon 2020 with a view to promoting synergies when identifying

priorities covered by collaborative research.

2. The Governing Board shall in particular carry out the following tasks:

(a) assess, accept or reject applications for new membership or association in

accordance with Clause 3;

(b) decide on the termination of the membership or association in the IMI2 Joint

Undertaking of any Member or Associated Partner that does not fulfil its

obligations;

(c) adopt the Financial rules of the IMI2 Joint Undertaking in accordance with Article 5

of this Regulation;

(d) adopt the annual budget of the IMI2 Joint Undertaking, including the staff

establishment plan indicating the number of temporary posts by function group and

by grade as well as the number of contract staff and seconded national experts

expressed in full-time equivalents;

(e) exercise the appointing authority powers with respect to the staff, in accordance

with Article 6(2);

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(f) appoint, dismiss, extend the term of office of, provide guidance to and monitor the

performance of the Executive Director;

(g) approve the organisational structure of the Programme Office referred to in Clause

9(5) upon recommendation by the Executive Director;

(h) adopt the annual work plan and the corresponding expenditure estimates, proposed

by the Executive Director in close cooperation with advisory groups referred to in

Clause 7(2)(q), after having consulted the Scientific Committee and the States

Representatives Group;

▌

(j) approve the annual activity report, including the corresponding expenditure;

(k) arrange, as appropriate, for the establishment of an internal audit capability of the

IMI2 Joint Undertaking;

(l) approve the calls for proposals as well as, where appropriate, the related rules for

submission, evaluation, selection, award and evaluation review procedures,

proposed by the Executive Director in close cooperation with advisory groups

referred to in Clause 7(2)(q);

(m) approve the list of proposals selected for funding;

(n) establish the IMI2 Joint Undertaking's communications policy upon

recommendation of the Executive Director;

(o) where appropriate, establish implementing rules in line with Article 6(3);

(p) where appropriate, establish rules on the secondment of national experts to the IMI2

Joint Undertaking and on the use of trainees in line with Article 7;

(q) where appropriate, set up advisory groups in addition to the bodies to the IMI2 Joint

Undertaking;

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(r) where appropriate, submit to the Commission any request to amend this Regulation

proposed by any Member of the IMI2 Joint Undertaking;

(s) be responsible for any task which is not specifically allocated to one of the bodies

of the IMI2 Joint Undertaking; it may assign such tasks to one of those bodies.

8 – Appointment, dismissal or extension of the term of office of the Executive Director

1. The Executive Director shall be appointed by the Governing Board from a list of

candidates proposed by the Commission, following an open and transparent selection

procedure. The Commission shall associate the representation from the other members of

the IMI2 Joint Undertaking in the selection procedure as appropriate.

In particular, an appropriate representation from the other members of the IMI2 Joint

Undertaking shall be ensured at the pre-selection stage of the selection procedure. For that

purpose, the private members shall appoint by common accord a representative as well as

an observer on behalf of the Governing Board.

2. The Executive Director is a member of staff and shall be engaged as a temporary agent of

the IMI2 Joint Undertaking under point (a) of Article 2 of the Conditions of Employment

of Other Servants of the Union.

For the purpose of concluding the contract of the Executive Director, the IMI2 Joint

Undertaking shall be represented by the chairperson of the Governing Board.

3. The term of office of the Executive Director shall be three years. By the end of that

period, the Commission associating the private members as appropriate shall undertake an

assessment of the performance of the Executive Director and the IMI2 Joint

Undertaking's future tasks and challenges.

4. The Governing Board, acting on a proposal from the Commission which takes into

account the assessment referred to in paragraph 3, may extend the term of office of the

Executive Director once, for no more than four years.

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5. An Executive Director whose term of office has been extended may not participate in

another selection procedure for the same post at the end of the overall period.

6. The Executive Director may be dismissed only upon a decision of the Governing Board

acting on a proposal from the Commission associating the private members as

appropriate.

9 - Tasks of the Executive Director

1. The Executive Director shall be the chief executive responsible for the day-to-day

management of the IMI2 Joint Undertaking in accordance with the decisions of the

Governing Board.

2. The Executive Director shall be the legal representative of the IMI2 Joint Undertaking.

He/she shall be accountable to the Governing Board.

3. The Executive Director shall implement the budget of the IMI2 Joint Undertaking.

4. The Executive Director shall in particular carry out the following tasks in an independent

manner:

(a) prepare and submit for adoption to the Governing Board the draft annual budget,

including the corresponding staff establishment plan indicating the number of

temporary posts in each grade and function group and the number of contract staff

and seconded national experts expressed in full-time equivalents;

(b) prepare in close cooperation with advisory bodies referred to in Clause 7(2)(q) and

submit for adoption to the Governing Board the annual work plan and the

corresponding expenditure estimates;

(c) submit for approval to the Governing Board the annual accounts;

(d) prepare and submit for approval to the Governing Board the annual activity report,

including the corresponding expenditure;

(e) submit for approval to the Governing Board the list of proposals selected for

funding;

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(ea) inform the States Representatives Group and the Scientific Committee regularly

of all matters relevant to their advisory role;

(f) sign individual grant agreements or decisions;

(g) sign procurement contracts;

(h) implement the IMI2 Joint Undertaking's communications policy;

(i) organise, direct and supervise the operations and the staff of the IMI2 Joint

Undertaking within the constraints of the delegation by the Governing Board as

provided for in Article 6(2) of this Regulation;

(j) establish and ensure the functioning of an effective and efficient internal control

system and report any significant change to it to the Governing Board;

(k) ensure that risk assessment and risk management are performed;

(l) take any other measures needed for assessing the progress of the IMI2 Joint

Undertaking towards achieving its objectives;

(m) perform any other tasks entrusted or delegated to the Executive Director by the

Governing Board.

5. The Executive Director shall set up a Programme Office for the execution, under his/her

responsibility, of all support tasks arising from this Regulation. The Programme Office

shall be composed of the staff of the IMI2 Joint Undertaking and shall in particular carry

out the following tasks:

(a) provide support in establishing and managing an appropriate accounting system in

accordance with the Financial rules of the IMI2 Joint Undertaking;

(b) manage the calls for proposals as provided for in the annual work plan and

administer the grant agreements or decisions, including their coordination;

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(c) provide to the Members and to the other bodies of the IMI2 Joint Undertaking all

relevant information and support necessary for them to perform their duties as well

as responding to their specific requests;

(d) act as the secretariat of the bodies of the Joint Undertaking and provide support to

any advisory group set up by the Governing Board.

10 - Scientific Committee

1. The Scientific Committee shall consist of no more than 11 members appointed for a

renewable period of two years. It shall elect a chairperson from amongst its members for

two years.

Additional experts may be appointed if necessary for specific ad-hoc tasks and limited

duration and their selection will follow the same procedure as the permanent members

of the Scientific Committee.

2. The members of the Scientific Committee shall reflect a balanced representation of

world-wide recognized experts from academia, industry and regulatory bodies.

Collectively, the Scientific Committee members shall have the necessary scientific

competencies and expertise covering the technical domain needed to make strategic

science-based recommendations to the IMI2 Joint Undertaking.

3. The Governing Board shall establish the specific criteria and selection process for the

composition of the Scientific Committee and shall appoint its members. The Governing

Board shall take into consideration the potential candidates proposed by the IMI2 States

Representatives Group.

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4. The Scientific Committee shall carry out the following tasks:

(-a) advise on the scientific priorities to be included in the Strategic Research Agenda

taking into account related activities in Horizon 2020;

(a) advise on the scientific priorities to be addressed in the annual work plans;

(b) advise on the scientific achievements described in the annual activity report.

5. The Scientific Committee shall meet at least twice a year. The meetings shall be convened

by its chairperson.

6. The Scientific Committee may, with the agreement of the chairperson, invite other

persons to attend its meetings.

7. The Scientific Committee shall adopt its own rules of procedure.

11- States Representatives Group

1. The IMI2 States Representatives Group shall consist of one representative of each

Member State and of each country associated to the Horizon 2020 Framework

Programme. It shall elect a chairperson from amongst its members.

2. The States Representatives Group shall meet at least twice a year. The meetings shall be

convened by its chairperson. The chairperson of the Governing Board and the Executive

Director or their representatives shall attend the meetings.

The chairperson of the States Representatives Group may invite other persons to attend its

meetings as observers, in particular representatives of regional authorities of the Union

and representatives of SME associations.

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3. The States Representatives Group shall be consulted and, in particular, review

information and provide opinions on the following matters:

(a) programme progress in the IMI2 Joint Undertaking and achievement of its targets,

including the information on calls and proposals evaluation process;

(b) updating of strategic orientation;

(c) links to the Horizon 2020 Framework Programme;

(d) annual work plans;

(e) involvement of SMEs.

4. The States Representatives Group shall also provide information to and act as an interface

with the IMI2 Joint Undertaking on the following matters:

(a) the status of relevant national or regional research and innovation programmes and

identification of potential areas of cooperation, including deployment, to allow

synergies and avoid overlaps;

(b) specific measures taken at national level or regional level with regard to

dissemination events, dedicated technical workshops and communication activities.

5. The States Representatives Group may issue, on its own initiative, recommendations or

proposals to the Governing Board on technical, managerial and financial matters as well

as on annual plans, in particular when those matters affect national or regional interests.

The Governing Board shall inform without undue delay the States Representatives

Group of the follow up it has given to such recommendations or proposals, including the

reasoning if they are not followed up.

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5a. The States Representatives Group shall receive information on a regular basis, among

others on the participation in indirect actions funded by the IMI2 Joint Undertaking,

on the outcome of each call and project implementation, on justifications for activities

mentioned in Article 4(2), on synergies with other relevant Union programmes, and on

the execution of the IMI2 budget.

6. The States Representatives Group shall adopt its own rules of procedure.

12 - Stakeholder Forum

1. The Stakeholder Forum shall be open to all public and private stakeholders, international

interest groups from Member States, associated countries as well as from other countries.

2. The Stakeholder Forum shall be informed of the activities of the IMI2 Joint Undertaking

and shall be invited to provide comments.

3. The meetings of the Stakeholder Forum shall be convened by the Executive Director.

13 - Sources of financing

1. The IMI2 Joint Undertaking shall be jointly funded by the Union, the Members other than

the Union and the Associated Partners, or their constituent entities or their affiliated

entities, through financial contributions paid in instalments and contributions consisting

of the costs incurred by them in implementing indirect actions and that are not reimbursed

by the IMI2 Joint Undertaking.

2. The administrative costs of the IMI2 Joint Undertaking shall not exceed EUR 85,2

million and shall be covered through financial contributions divided equally on an annual

basis between the Union and the Members other than the Union. If part of the

contribution for administrative costs is not used, it may be made available to cover the

operational costs of the IMI2 Joint Undertaking.

251

3. The operational costs of the IMI2 Joint Undertaking shall be covered through the

following contributions:

(a) a financial contribution by the Union;

(b) in kind contributions by the Members other than the Union and the Associated

Partners, or their constituent entities or their affiliated entities, consisting of the

costs incurred by them in implementing indirect actions, and in relation to advisory

bodies referred to in Clause 7(2)(q) if foreseen in the annual work plan, less the

contribution of the IMI2 Joint Undertaking and any other Union contribution to

those costs;

(c) a financial contribution by the Members other than the Union and the Associated

Partners, or their constituent entities or their affiliated entities, which may be made

in addition to, or instead of point (b).

4. The resources of the IMI2 Joint Undertaking entered to its budget shall be composed of

the following contributions:

(a) Members' financial contributions to the administrative costs;

(b) Members' and Associated Partners’ financial contributions to the operational costs;

(c) any revenue generated by the IMI2 Joint Undertaking;

(d) other financial contributions, resources and revenues.

Any interest yielded by the contributions paid to the IMI2 Joint Undertaking by its

Members and Associated Partners shall be considered to be its revenue.

5. All resources of the IMI2 Joint Undertaking and its activities shall be devoted to the

objectives set out in Article 2 of this Regulation.

6. The IMI2 Joint Undertaking shall own all assets generated by it or transferred to it for the

achievement of its objectives provided for in Article 2 of this Regulation.

252

7. Except when the IMI2 Joint Undertaking is wound up pursuant to Clause 21, any excess

revenue over expenditure shall not be paid to the Members of the IMI2 Joint Undertaking.

14 – Financial commitments

Financial commitments of the IMI2 Joint Undertaking shall not exceed the amount of financial

resources available or committed to its budget by its Members and Associated Partners.

15 - Financial year

The financial year shall run from 1 January to 31 December.

16 – Operational and financial planning

1. The Executive Director shall submit for adoption to the Governing Board a draft annual

work plan, which shall include a detailed plan of the research and innovation activities,

the administrative activities and the corresponding expenditure estimates for the coming

year. The draft work plan shall also include the estimated value of the contributions to be

made in accordance with clause 13(3)(b).

2. The annual work plan for a particular year shall be adopted by the end of the previous

year. The annual work plan shall be made publicly available.

3. The Executive Director shall prepare the draft annual budget for the following year and

submit it to the Governing Board for adoption.

4. The annual budget for a particular year shall be adopted by the Governing Board by the

end of the previous year.

5. The annual budget shall be adapted in order to take into account the amount of the Union

contribution as set out in the Union budget.

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17 – Operational and financial reporting

1. The Executive Director shall report annually to the Governing Board on the performance

of his/her duties in accordance with the Financial rules of the IMI2 Joint Undertaking.

Within two months of the closure of each financial year, the Executive Director shall

submit to the Governing Board for approval an annual activity report on the progress

made by the IMI2 Joint Undertaking in the previous calendar year, in particular in relation

to the annual work plan for that year. That report shall include, inter alia, information on

the following matters:

(a) research, innovation and other actions carried out and the corresponding

expenditure;

(b) proposals submitted, including a breakdown by participant type, including SMEs,

and by country;

(c) the actions selected for funding, including a breakdown by participant type,

including SMEs, and by country and indicating the contribution of the IMI2 Joint

Undertaking to the individual participants and actions.

2. Once approved by the Governing Board, the annual activity report shall be made publicly

available.

3. By 1 March of the following financial year, the accounting officer of the IMI2 Joint

Undertaking shall send the provisional accounts to the Commission's accounting officer

and the Court of Auditors.

By 31 March of the following financial year, the IMI2 Joint Undertaking shall send the

report on the budgetary and financial management to the European Parliament, the

Council and the Court of Auditors.

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On receipt of the Court of Auditors' observations on the IMI2 Joint Undertaking's

provisional accounts pursuant to Article 148 of Regulation (EU, Euratom) No

966/2012, the accounting officer shall draw up the IMI2 Joint Undertaking's final

accounts and the Executive Director shall submit them to the Governing Board for an

opinion.

The Governing Board shall deliver an opinion on the IMI2 Joint Undertaking's final

accounts.

The Executive Director shall, by 1 July following each financial year, send the final

accounts to the European Parliament, the Council, the Commission and the Court of

Auditors, together with the Governing Board's opinion.

The final accounts shall be published in the Official Journal of the European Union by

15 November of the following year.

The Executive Director shall send the Court of Auditors a reply to its observations

made in its annual report by 30 September. The Executive Director shall also send this

reply to the Governing Board.

The Executive Director shall submit to the European Parliament, at the latter's request,

any information required for the smooth application of the discharge procedure for the

financial year in question, in accordance with Article 165(3) of Regulation (EU,

Euratom) No 966/2012.

▌

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18 - Internal audit

The Commission's internal auditor shall exercise the same powers over the IMI2 Joint

Undertaking as those exercised in respect of the Commission.

19 - Liability of Members and insurance

1. The financial liability of the Members for the debts of the IMI2 Joint Undertaking shall be

limited to their contribution already made for the administrative costs.

2. The IMI2 Joint Undertaking shall take out and maintain appropriate insurance.

20 - Conflict of interest

1. The IMI2 Joint Undertaking, its bodies and staff shall avoid conflict of interest in the

implementation of their activities.

2. The IMI2 Joint Undertaking Governing Board shall adopt rules for the prevention and

management of conflicts of interest in respect of its Members, Associated Partners, bodies

and staff. In those rules, provision shall be made to avoid conflict of interest for the

representatives of the Members serving the Governing Board.

21 - Winding up

1. The IMI2 Joint Undertaking shall be wound up at the end of the period in Article 1 of this

Regulation.

2. The winding up procedure shall be automatically triggered if the Commission or all other

Members withdraw from the IMI2 Joint Undertaking.

3. For the purpose of conducting the proceedings to wind up the IMI2 Joint Undertaking, the

Governing Board shall appoint one or more liquidators, who shall comply with the

decisions of the Governing Board.

256

4. When the IMI2 Joint Undertaking is being wound up, its assets shall be used to cover its

liabilities and the expenditure relating to its winding up. Any surplus shall be distributed

among the Members at the time of the winding up in proportion to their financial

contribution to the IMI2 Joint Undertaking. Any such surplus distributed to the Union

shall be returned to the Union budget.

5. An ad hoc procedure shall be set up to ensure the appropriate management of any

agreement concluded or decision adopted by the IMI2 Joint Undertaking as well as any

procurement contract with a duration longer than its duration.

257

P7_TA-PROV(2014)0374

ECSEL Joint Undertaking *

European Parliament legislative resolution of 15 April 2014 on the proposal for a Council regulation on the ECSEL Joint Undertaking (COM(2013)0501 – C7-0258/2013 – 2013/0234(NLE))

(Consultation)

The European Parliament,

– having regard to the Commission proposal to the Council (COM(2013)0501),

– having regard to Article 187 and the first paragraph of Article 188 of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C7-0258/2013),

– having regard to Rule 55 of its Rules of Procedure,

– having regard to the report of the Committee on Industry, Research and Energy and the opinion of the Committee on Budgetary Control (A7-0074/2014),

1. Gives a favourable opinion on the Commission proposal as amended;

2. Calls on the Commission to alter its proposal accordingly, in accordance with Article 293(2) of the Treaty on the Functioning of the European Union;

3. Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;

4. Asks the Council to consult Parliament again if it intends to substantially amend the Commission proposal;

5. Instructs its President to forward its position to the Council and the Commission.

258

P7_TC1-NLE(2013)0234

Position of the European Parliament adopted on 15 April 2014 with a view to the adoption of Council regulation on the ECSEL Joint Undertaking

(Text with EEA relevance)

THE COUNCIL OF THE EUROPEAN UNION,

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

187 and the first paragraph of Article 188 thereof,

Having regard to the proposal from the European Commission,

Having regard to the opinion of the European Parliament1,

Having regard to the opinion of the European Economic and Social Committee2,

Whereas:

(1) Public-private partnerships in the form of Joint Technology Initiatives were initially

provided for in Decision No 1982/2006/EC of the European Parliament and of the

Council of 18 December 2006 concerning the Seventh Framework Programme of the

European Community for research, technological development and demonstration

activities (2007-2013)3.

1 Position of the European Parliament of 15 April 2014.2 OJ C [ESC opinion], , p. .3 OJ L 412, 30.12.2006, p. 1.

259

(2) Council Decision 2006/971/EC of 19 December 2006 concerning the Specific

Programme ‘Cooperation’ implementing the Seventh Framework Programme of the

European Community for research, technological development and demonstration

activities (2007-2013)1 identified specific public-private partnerships to be supported,

including public-private partnerships in the specific areas of the ENIAC and ARTEMIS

Joint Technology Initiatives.

(3) Europe 2020 Strategy2 underscores the need to develop favourable conditions for

investment in knowledge and innovation so as to achieve smart, sustainable and

inclusive growth in the Union. Both European Parliament and Council have endorsed

this strategy.

(4) Regulation (EU) No 1291/2013 of the European Parliament and of the Council of

11 December 2013 establishing Horizon 2020 — The Framework Programme for

Research and Innovation (2014-2020)3 aims to achieve a greater impact on research and

innovation by combining Horizon 2020 Framework Programme and private-sector funds

in public-private partnerships in key areas where research and innovation can contribute

to the Union’s wider competitiveness goals, leverage private investment, and help

tackle societal challenges. Those partnerships should be based on a long-term

commitment, including a balanced contribution from all partners, be accountable for

the achievement of their objectives and be aligned with the Union's strategic goals

relating to research, development and innovation. The governance and functioning of

those partnerships should be open, transparent, effective and efficient and give the

opportunity to a wide range of stakeholders active in their specific areas to participate.

Union involvement in those partnerships may take the form of financial contributions to

joint undertakings established on the basis of Article 187 of the Treaty on the

Functioning of the European Union under Decision No 1982/2006/EC.

1 OJ L 400, 30.12.2006, p. 86.2 COM(2010) 2020 final.3 OJ L 347, 20.12.2013, p. 104 [H2020 FP].

260

(5) In accordance with Regulation (EU) No 1291/2013 and Council Decision /2013/743/ of

3 December 2013 establishing the Specific Programme implementing Horizon 2020

(2014-2020)1 further support should be provided to Joint Undertakings established under

Decision No 1982/2006/EC under the conditions specified in Council Decision

2013/743/EU. The Industrial Leadership priority targets two specific activity lines under

Information and Communication Technologies: "micro- and nanoelectronics", and "a

new generation of components and systems, engineering of advanced and smart

embedded components and systems". Embedded computing systems (ARTEMIS) and

nanoelectronics (ENIAC) should be combined into a single initiative.

(6) The Commission Communication ‘A European strategy for Key Enabling Technologies

— A bridge to growth and jobs"2 identifies key enabling technologies (hereinafter

‘KET’), which include micro- and nanoelectronics, as indispensable sources of

innovation. There is currently a gap between basic knowledge generation and its

subsequent commercialisation into goods and services. This needs to be tackled inter

alia through a focused effort on pilot manufacturing lines and innovation pilot projects,

including those of larger scale, for achieving technology and product validation under

industrial conditions, and more integration and cross-fertilisation between the various

KETs.

1 OJ L 347, 20.12.2013, p. 965 [H2020 SP].2 COM(2012) 341, 26.6.2012.

261

(7) According to the Commission Communication ‘A European strategy for micro- and

nanoelectronics components and systems’1, micro- and nanoelectronics components and

systems underpin innovation and competitiveness of all major economic sectors. The

importance of the area and the challenges faced by the stakeholders in the Union require

urgent action in order to leave no weak link in Europe’s innovation and value chains. It

is thus proposed to set up a mechanism at Union level to combine and focus support to

research and innovation in electronic components and systems by Member States, the

Union and the private sector.

(8) In view of regaining a leading position in the nanoelectronics eco-system for Europe, the

industrial and research stakeholders have proposed a strategic research and innovation

programme with a total investment of EUR 100 billion up to the year 2020, aiming at

increasing Europe’s nanoelectronics-based worldwide revenues by over EUR 200

billion per year and creating an additional 250 000 direct and induced jobs in Europe.

(9) The term ‘Electronic Components and Systems’ encompasses the areas of micro- and

nanoelectronics, embedded/cyber-physical and smart integrated systems and

applications.

(10) The ENIAC Joint Undertaking set up by Council Regulation (EC) No 72/2008 of

20 December 20072 successfully implemented a research agenda strengthening the

relevant areas in nanoelectronics in which Europe improved its competitiveness by

leveraging investments in priority subjects and by engaging the whole ecosystem.

1 COM(2013) 298, 23.5.2013.2 OJ L 30, 4.2.2008, p. 21.

262

(11) The ARTEMIS Joint Undertaking set up by Council Regulation (EC) No 74/2008 of

20 December 2007 on the establishment of the ‘ARTEMIS Joint Undertaking’ to

implement a Joint Technology Initiative in Embedded Computing Systems1 has

successfully demonstrated its strategic positioning which combines top-down guidance

with bottom-up definition of the technical issues to be addressed, attracting projects with

outcomes directly relevant for industry.

(12) The interim evaluations of the ENIAC and ARTEMIS Joint Undertakings have shown

that they are useful and adapted tools to combine forces and have significant impact in

their respective domains. The research areas covered by the ENIAC and ARTEMIS

Joint Undertakings should therefore continue to be supported in order to further improve

the competitiveness of the electronic components and systems industry in Europe and

focus the efforts on a set of strategic activities commonly agreed among the private and

public stakeholders engaged in the initiatives.

(13) Continued support for the nanoelectronics and embedded computing systems research

programmes should build on the experience acquired from the operations of the ENIAC

and ARTEMIS Joint Undertakings including the results of their interim evaluations, the

stakeholders’ recommendations and the need to achieve effective coordination and

synergy of resources.

1 OJ L 30, 4.2.2008, p. 52.

263

(14) There is increased interaction between the stakeholders of the European Technology

Platforms ARTEMIS, ENIAC and EPoSS (the European Technology Platform on Smart

Systems Integration) as detailed in the High Level Strategic Research and Innovation

Agenda of the ICT Components and Systems Industries which they released in 2012. In

order to best capture and build on the synergies stemming from these interactions, it is

necessary to set up a single Joint Undertaking (hereinafter the ‘ECSEL Joint

Undertaking’) covering electronic components and systems including the previous

activities of the ENIAC and ARTEMIS Joint Undertakings and using a more fit-for-

purpose structure and rules in order to enhance efficiency and to ensure simplification.

To this effect, the ECSEL Joint Undertaking should adopt financial rules specific to its

needs in accordance with Article 209 of Regulation (EU, Euratom) No 966/2012 of the

European Parliament and of the Council of 25 October 2012 on the financial rules

applicable to the general budget of the Union1.

(15) The implementation of the high level strategic research and innovation agenda put

forward by the industrial stakeholders relies on several sources of support: national,

regional and intergovernmental programmes, Union Framework Programme and a Joint

Technology Initiative in the form of a public-private partnership.

(16) The public-private partnership on electronic components and systems should combine

the financial and technical means that are essential to master the complexity of the ever

escalating pace of innovation in this area. Therefore, the members of the ECSEL Joint

Undertaking should be the Union, Member States and Associated Countries to the

Horizon 2020 Framework Programme (hereinafter ‘Associated Countries’) on a

voluntary basis, and associations as private members representing their constituent

companies and other organisations active in the field of electronic components and

systems in Europe. The ECSEL Joint Undertaking should be open to new members.

1 OJ L 298, 26.10.2012, p. 1.

264

(17) The ECSEL Joint Undertaking should address clearly defined topics that would enable

the European industries at large to design, manufacture and use the most innovative

technologies in electronic components and systems. A structured and coordinated

financial support at European level is necessary to help maintain research teams and

European industries at the leading edge in a highly competitive international context,

ensure the fast and broad industrial exploitation of technology leadership across Europe

generating important spill-overs for society, share risk-taking and join forces by aligning

strategies and investments towards a common European interest. The Commission

might consider, upon notification of the Member State or group of Member States

concerned, that the ECSEL Joint Undertaking's initiatives qualify as important projects

of common European interest, provided all relevant conditions are met.

(18) The private associations AENEAS, ARTEMISIA and EPoSS have expressed in writing

their agreement for the research and innovation activities in the area of the ECSEL Joint

Undertaking to be pursued within a structure well adapted to the nature of a public-

private partnership. It is appropriate that the private associations accept the Statutes set

out in the Annex to this Regulation by means of a letter of endorsement.

(19) In order to achieve its objectives, the ECSEL Joint Undertaking should provide financial

support mainly in the form of grants to participants following open and competitive calls

for proposals. Such financial support must be targeted at proven market failures that

prevent the development of the programme concerned and must have an incentive effect

in that it changes the behaviour of the recipient.

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(19a) The ECSEL Joint Undertaking should operate in an open and transparent way

providing all relevant information in a timely manner to its appropriate bodies as well

as promoting its activities, including information and dissemination activities to the

wider public. The rules of procedure of the bodies of the Joint Undertaking should be

made publicly available.

(19b) In assessing the overall impact of the ECSEL Joint Undertaking, the investments

from all legal entities other than the Union and the ECSEL Participating States

contributing to the objectives of the ECSEL Joint Undertaking should be taken into

account. These overall investments are expected to amount to at least EUR 2 340 000

000.

(20) In order to maintain a level playing field for all undertakings active in the internal

market, funding provided by the Union Framework Programme should be designed in

accordance with State aid rules so as to ensure the effectiveness of public spending and

prevent market distortions such as crowding-out of private funding, creating ineffective

market structures or preserving inefficient firms.

266

(21) Participation in indirect actions funded by the ECSEL Joint Undertaking should comply

with Regulation (EU) No 1290/2013 of the European Parliament and of the Council of

11 December 2013 laying down the rules for the participation and dissemination in

"Horizon 2020 – the Framework Programme for Research and Innovation (2014-

2020)"1. The ECSEL Joint Undertaking should, moreover, ensure consistent

application of these rules based on relevant measures adopted by the Commission.

Specific criteria regarding the eligibility of individual applicants to receive funding

from ECSEL Participating States may be determined by the relevant authorities.

Specific rules regarding the eligibility of costs may be determined by an ECSEL

Participating State when it does not entrust the ECSEL Joint Undertaking with the

implementation of its contributions to the participants in indirect actions.

(21a) The ECSEL Joint Undertaking should also use electronic means managed by the

Commission to ensure openness, transparency and facilitate participation. Therefore,

the calls for proposals launched by the ECSEL Joint Undertaking should also be

published on the single portal for participants as well as through other Horizon 2020

electronic means of dissemination managed by the Commission. Moreover, relevant

data on inter alia proposals, applicants, grants and participants should be made

available by the ECSEL Joint Undertaking for inclusion in the Horizon 2020

reporting and dissemination electronic systems managed by the Commission, in an

appropriate format and with the periodicity corresponding to the Commission’s

reporting obligations.

1 OJ L 347, 20.12.2013, p. 81 [H2020 Rules for participation and dissemination].

267

(21b) The ECSEL Joint Undertaking should take into account the OECD definitions

regarding Technological Readiness Level (TRL) in the classification of technological

research, product development and demonstration activities.

(22) The Union’s financial contribution should be managed in accordance with the principle

of sound financial management and with the relevant rules on indirect management set

out in Regulation (EU, Euratom) No 966/2012 and Commission Delegated Regulation

(EU) No 1268/2012 of 29 October 2012 on the rules of application of Regulation (EU,

Euratom) No 966/20121.

(23) For the purpose of simplification, administrative burdens should be reduced for all

parties. Double audits and disproportionate documentation and reporting should be

avoided. Audits of recipients of Union funds under this Regulation should be carried out

in ▌compliance with Regulation (EU) No 1291/2013.▌

(24) The financial interests of the Union and of the other members of the ECSEL Joint

Undertaking should be protected by proportionate measures throughout the expenditure

cycle, including the prevention, detection and investigation of irregularities, the

recovery of funds lost, wrongly paid or incorrectly used and, where appropriate,

administrative and financial penalties in accordance with Regulation (EU, Euratom) No

966/2012.

(25) The Commission's internal auditor should exercise the same powers over the ECSEL

Joint Undertaking as those exercised in respect of the Commission.

1 OJ L 362, 31.12.2012, p. 1.

268

(26) ▌In view of the specific nature and the current status of the Joint Undertakings, and

in order to ensure continuity with the 7th Framework Programme, the Joint

Undertakings should continue to be subject to a separate discharge. By way of

derogation from Articles 60(7) and 209 of Regulation (EU, Euratom) No 966/2012,

discharge for the implementation of the budget of the ECSEL Joint Undertaking

should therefore be given by the European Parliament on the recommendation of the

Council. Hence, the reporting requirements set out in Article 60(5) should not apply

to the contribution of the Union to the ECSEL Joint Undertaking but they should be

aligned to the extent possible to the ones foreseen for bodies under Article 208 of

Regulation (EU, Euratom) No 966/2012. The auditing of accounts and of the legality

and regularity of the underlying transactions should be undertaken by the Court of

Auditors.

(27) In accordance with the principles of subsidiarity and proportionality as set out in Article

5 of the Treaty on European Union, the objectives of the ECSEL Joint Undertaking in

strengthening industrial research and innovation across the Union cannot be sufficiently

achieved by the Member States and can therefore, by reason of avoiding unnecessary

duplication, retaining critical mass and ensuring that public financing is used in an

optimal way, be better achieved by the Union. This Regulation confines itself to the

minimum required in order to achieve those objectives and does not go beyond what is

necessary for that purpose.

(27a) Horizon 2020 should contribute to the closing of the research and innovation divide

within the Union by promoting synergies with the European Structural and

Investment Funds (ESIF). Therefore the ECSEL Joint Undertaking should seek to

develop close interactions with the ESIF, which can specifically help to strengthen

local, regional and national research and innovation capabilities in the area of the

ECSEL Joint Undertaking and underpin smart specialisation efforts.

269

(28) The ENIAC and ARTEMIS Joint Undertakings were set up for a period up to

31 December 2017. The ECSEL Joint Undertaking should provide continued support

to the nanoelectronics and embedded computing systems research programmes by

implementing the remaining actions initiated under Regulations (EC) No 72/2008 and

No 74/2008 in accordance with Regulations (EC) No 72/2008 and No 74/2008. The

transition from the ENIAC and ARTEMIS Joint Undertakings to the ECSEL Joint

Undertaking should be aligned and synchronized with the transition from the Seventh

Framework Programme to the Horizon 2020 Framework Programme to ensure optimal

use of the funding available for research. In the interest of legal certainty and clarity,

Council Regulations (EC) No 72/2008 and No 74/2008 should therefore be repealed and

transitional provisions should be set out.

(28a) With a view to the overall aim of Horizon 2020 to achieve greater simplification and

coherence, all calls for proposals under the ECSEL Joint Undertaking should take

into account the duration of the Horizon 2020 Framework Programme.

HAS ADOPTED THIS REGULATION:

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Article 1

Establishment

1. To implement the Joint Technology Initiative on ‘Electronic Components and Systems

for European Leadership’, a Joint Undertaking within the meaning of Article 187 of

the Treaty on the functioning of the European Union (hereinafter ‘ECSEL Joint

Undertaking’) is hereby established for a period up to 31 December 2024. In order to

take into account the duration of the Horizon 2020 Framework Programme, calls

for proposals under ECSEL Joint Undertaking shall be launched at the latest by 31

December 2020. In duly justified cases calls for proposals may be launched until

31 December 2021.

2. The ECSEL Joint Undertaking shall replace and succeed the ENIAC and ARTEMIS

Joint Undertakings as originally established by Regulations (EC) Nos 72/2008 and

74/2008.

3. The ECSEL Joint Undertaking shall constitute a body entrusted with the

implementation of a public-private partnership referred to in Article 209 of Regulation

(EU, Euratom) No 966/2012.

4. The ECSEL Joint Undertaking shall have legal personality. In each of the Member

States, it shall enjoy the most extensive legal capacity accorded to legal persons under

the laws of those Member States. It may, in particular, acquire or dispose of movable

and immovable property and may be a party to legal proceedings.

5. The seat of the ECSEL Joint Undertaking shall be located in Brussels, Belgium.

6. The Statutes of the ECSEL Joint Undertaking are set out in the Annex.

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Article 2

Objectives

1. The ECSEL Joint Undertaking shall have the following objectives:

(a) to contribute to the implementation of Regulation (EU) No 1291/2013 of the

European Parliament and of the Council of 11 December 2013 establishing the

Horizon 2020 — The Framework Programme for Research and Innovation

(2014-2020) and in particular part II of Council Decision 2013/743/EU ▌;

(b) to contribute to the development of a strong and globally competitive electronics

components and systems industry in the Union;

(c) to ensure the availability of electronic components and systems for key markets

and for addressing societal challenges, aiming at keeping Europe at the forefront

of technology development, bridging the gap between research and exploitation,

strengthening innovation capabilities and creating economic and employment

growth in the Union;

(d) to align strategies with Member States to attract private investment and

contribute to the effectiveness of public support by avoiding unnecessary

duplication and fragmentation of efforts, and easing participation for actors

involved in research and innovation;

272

(e) to maintain and grow semiconductor and smart system manufacturing capability

in Europe, including leadership in manufacturing equipment and materials

processing;

(f) to secure and strengthen a commanding position in design and systems

engineering including embedded technologies;

(g) to provide access for all stakeholders to a world-class infrastructure for the

design and manufacture of electronic components and embedded/cyber-physical

and smart systems;

(h) to build a dynamic ecosystem involving ▌ Small and Medium-Sized Enterprises

(SMEs), thereby strengthening existing clusters and nurturing the creation of

new clusters in promising new areas.

2. The scope of work for the ECSEL Joint Undertaking will build on the results obtained

by the ENIAC and ARTEMIS Joint Undertakings ▌, the European Technology

Platform EPoSS and work funded through other national and European

programmes. It will foster in a proper and balanced way new developments in, and

synergies between the following main areas:

(a) design technologies, process and integration, equipment, materials and

manufacturing for micro- and nanoelectronics while targeting miniaturisation,

diversification and differentiation, heterogeneous integration;

(b) processes, methods, tools and platforms, reference designs and architectures, for

software and/or control-intensive embedded/cyber-physical systems, addressing

seamless connectivity and interoperability, functional safety, high availability,

and security for professional and consumer type applications, and connected

services;

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(c) multi-disciplinary approaches for smart systems, supported by developments in

holistic design and advanced manufacturing to realise self-reliant and adaptable

smart systems having sophisticated interfaces and offering complex

functionalities based on e.g. the seamless integration of sensing, actuating,

processing, energy provision and networking.

Article 3

Union financial contribution

1. The maximum Union contribution, including EFTA appropriations, to the ECSEL

Joint Undertaking to cover administrative costs and operational costs shall be

EUR 1 184 874 000. The contribution shall be paid from the appropriations in the

general budget of the Union allocated to the Specific Programme implementing

Horizon 2020 (2014-2020). The budget implementation with regard to the Union

contribution shall be entrusted to the ECSEL Joint Undertaking acting as a body

referred to in Article 209 of Regulation (EU, Euratom) No 966/2012 in accordance

with Articles 58(1)(c)(iv), 60 and 61 of that Regulation.

2. The arrangements for the Union financial contribution shall be set out in a delegation

agreement and annual transfer of funds agreements to be concluded between the

Commission, on behalf of the Union, and the ECSEL Joint Undertaking.

3. The delegation agreement referred to in paragraph 2 shall address the elements set out

in Article 58(3) and Articles 60 and 61 of Regulation (EU, Euratom) No 966/2012 and

in Article 40 of Commission Delegated Regulation (EU) No 1268/2012 as well as inter

alia the following:

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(a) the requirements for the ECSEL Joint Undertaking’s contribution concerning the

relevant performance indicators referred to in Annex II to Council Decision

No 2013/743/EU ▌;

(b) the requirements for the ECSEL Joint Undertaking’s contribution in view of the

monitoring referred to in Annex III to Council Decision No 2013/743/EU ▌;

(c) the specific performance indicators related to the functioning of the ECSEL Joint

Undertaking;

(d) the arrangements regarding the provision of data necessary to ensure that the

Commission is able to meet its dissemination and reporting obligations as referred

to in Article 28 of Regulation (EU) No 1291/2013; including on the single portal

for participants as well as through other Horizon 2020 electronic means of

dissemination managed by the Commission;

(da) provisions for the publication of calls for proposals of the ECSEL Joint

Undertaking also on the single portal for participants as well as through other

Horizon 2020 electronic means of dissemination managed by the Commission;

(e) the use of and changes to human resources, in particular recruitment by function

group, grade and category, the reclassification exercise and any changes to the

number of staff members.

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Article 4

Contributions of members other than the Union

1. The ECSEL Participating States shall make a financial contribution to the operational

costs of the ECSEL Joint Undertaking to commensurate to the contribution of the

Union. The amount of at least EUR 1 170 000 000 over the period defined in Article 1

is envisaged.

2. The private members shall make or arrange for their constituent entities and affiliated

entities to make contributions to the ECSEL Joint Undertaking. The amount of at least

EUR 1 657 500 000 over the period defined in Article 1 is envisaged.

3. The contributions referred to in paragraphs 1 and 2 shall consist of contributions to the

ECSEL Joint Undertaking as laid down in clause 16(2), clause 16(3)(b) and clause

16(3)(c) of the Statutes.

4. The Members of the ECSEL Joint Undertaking other than the Union shall report each

year by 31 January to the Governing Board on the value of the contributions referred to

in paragraphs 1 and 2 made in each of the previous financial years.

5. For the purpose of valuing the contributions referred to in clause 16(3)(c) of the

Statutes, the costs shall be determined according to the usual cost accounting practices

of the entities concerned, or to the applicable accounting standards of the country

where each entity is established, or to the applicable International Accounting

Standards / International Financial Reporting Standards. The costs shall be certified by

an independent external auditor appointed by the entity concerned. The valuation

method may be verified by the ECSEL Joint Undertaking should there be any

uncertainty arising from the certification. In case of remaining uncertainties, it may

be audited by the ECSEL Joint Undertaking.

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6. The Commission may engage in remedial actions and possibly terminate,

proportionally reduce or suspend the Union financial contribution to the ECSEL Joint

Undertaking or trigger the winding up procedure referred to in clause 26(2) of the

Statutes if ▌members other than the Union, including their constituent entities and

affiliated entities do not contribute, contribute only partially or contribute late with

regard to the contributions referred to in paragraphs 1 and 2.

Article 5

Financial rules

Without prejudice to Article 12, the ECSEL Joint Undertaking shall adopt its specific financial

rules in accordance with Article 209 of Regulation (EU, Euratom) No 966/2012 and Regulation

(EU) No … [delegated Regulation on the model Financial Regulation for PPPs].

Article 6

Staff

1. The Staff Regulations of Officials and the Conditions of Employment of Other

Servants of the European Union laid down in Council Regulation (EEC, Euratom,

ECSC) No 259/681 and the rules adopted by agreement between the institutions of the

Union for giving effect to those acts shall apply to the staff employed by the ECSEL

Joint Undertaking.

2. Regarding the staff of the ECSEL Joint Undertaking, the Governing Board shall

exercise the powers conferred by the Staff Regulations on the appointing authority and

by the Conditions of Employment of Other Servants on the authority empowered to

conclude contracts (hereinafter ‘the appointing authority powers’).

1 OJ L 56, 04.03.1968, p. 1.

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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 Article 6 of

the Conditions of Employment of Other Servants delegating the relevant appointing

authority powers to the Executive Director and defining the conditions under which

this delegation of powers can be suspended. The Executive Director shall be

authorised to sub-delegate those powers.

In exceptional circumstances, the Governing Board may decide to temporarily suspend

the delegation of the appointing authority powers to the Executive Director and those

sub-delegated by the latter, and exercise them itself or delegate them to one of its

members or to a staff member of ECSEL the Joint Undertaking other than the

Executive Director.

3. The Governing Board shall adopt appropriate implementing rules giving effect to the

Staff Regulations and the Conditions of Employment of Other Servants in accordance

with Article 110 of the Staff Regulations.

4. The staff resources shall be set out by the staff establishment plan of the ECSEL 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

line with its annual budget.

5. The staff of the ECSEL Joint Undertaking shall consist of temporary staff and contract

staff.

6. All costs related to staff shall be borne by the ECSEL Joint Undertaking.

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Article 7

Seconded national experts and trainees

1. The ECSEL Joint Undertaking may make use of seconded national experts and

trainees not employed by the ECSEL Joint Undertaking. The number of seconded

national experts expressed in full-time equivalents shall be added to the staff resources

as referred to in Article 6(4) in line with the annual budget.

2. The Governing Board shall adopt a decision laying down rules on the secondment of

national experts to the ECSEL Joint Undertaking and on the use of trainees.

Article 8

Privileges and Immunities

The Protocol on the Privileges and Immunities of the European Union shall apply to the ECSEL

Joint Undertaking and its staff.

Article 9

Liability of the ECSEL Joint Undertaking

1. The contractual liability of the ECSEL 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 event of non-contractual liability, the ECSEL Joint Undertaking shall make

good any damage caused by its staff in the performance of their duties, in accordance

with the general principles common to the laws of the Member States.

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3. Any payment by the ECSEL Joint Undertaking in respect of the liability referred to in

paragraphs 1 and 2 and the costs and expenses incurred in that connection shall be

considered as expenditure of the ECSEL Joint Undertaking and shall be covered by the

resources of the ECSEL Joint Undertaking.

4. The ECSEL Joint Undertaking shall be solely responsible for meeting its obligations.

Article 10

Jurisdiction of the Court of Justice and applicable law

1. The Court of Justice shall have jurisdiction ▌:

▌

(b) pursuant to any arbitration clause contained in agreements, decisions and contracts

concluded by the ECSEL Joint Undertaking;

(c) in disputes relating to compensation for damage caused by the staff of the ECSEL

Joint Undertaking in the performance of their duties;

(d) in any dispute between the ECSEL Joint Undertaking and its staff within the limits

and under the conditions laid down in the Staff Regulations of Officials and the

Conditions of Employment of Other Servants of the European Union.

2. Regarding any matter involving an Associated Country, the specific provisions of the

relevant agreements shall apply.

3. Regarding any matter not covered by this Regulation or by Union law, the law of the

state where the seat of the ECSEL Joint Undertaking is located shall apply.

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Article 11

Evaluation

1. By 30 June 2017 the Commission shall carry out, with the assistance of independent

experts, an interim evaluation of the ECSEL Joint Undertaking, which shall assess

notably the level of participation in, and contribution to, the indirect actions both by

the private members and their constituent entities and affiliated entities, and also by

other legal entities. The Commission shall prepare a report on that evaluation which

includes conclusions of the evaluation and ▌observations by the Commission. The

Commission shall send that report to the European Parliament and to the Council by

31 December 2017. The results of the interim evaluation of the ECSEL Joint

Undertaking shall be taken into account in the in-depth assessment and in the

interim evaluation referred to in Article 32 of Regulation (EU) No 1291/2013.

2. On the basis of the conclusions of the interim evaluation referred to in paragraph 1, the

Commission may act in accordance with Article 4(6) or take any other appropriate

action.

3. Within six months after the winding up of the ECSEL Joint Undertaking, but no later

than two years after the triggering of the winding up procedure referred to in clause 26

of the Statutes, the Commission shall conduct a final evaluation of the ECSEL Joint

Undertaking. The results of that final evaluation shall be presented to the European

Parliament and to the Council.

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Article 12

Discharge

By way of derogation from Articles 60(7) and 209 of Regulation No 966/2012, the discharge

for the ▌ implementation of the budget of the ECSEL Joint Undertaking shall be ▌ given by

the European Parliament, upon recommendation of the Council ▌in accordance with the

procedure provided for in the financial rules of the ▌ ECSEL Joint Undertaking ▌.

Article 13

Ex-post audits

1. Ex-post audits of expenditure on indirect actions shall be carried out by the ECSEL

Joint Undertaking in accordance with Article 29 of Regulation (EU) No 1291/2013 as

part of the Horizon 2020 Framework Programme indirect actions.

2. The Commission may decide to carry out the audits referred to in paragraph 1. It shall

do so in accordance with the applicable rules, in particular Regulation (EU,

Euratom) No 966/2012, Regulation (EU) No 1291/2013 and Regulation (EU) No

1290/2013.

Article 14

Protection of the Union’s financial interests

1. The ECSEL Joint Undertaking shall grant Commission staff and other persons

authorised by the Joint Undertaking or the Commission, as well as the Court of

Auditors, access to its sites and premises and to all the information, including

information in electronic format, needed in order to conduct their audits.

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2. The European Anti-Fraud Office (OLAF) may carry out investigations, including on-

the-spot checks and inspections, in accordance with the provisions and procedures laid

down in Regulation (EU, Euratom) No 883/2013 of the European Parliament and of

the Council1 ▌and Council Regulation (Euratom, EC) No 2185/96 of 11 November

1996 concerning on-the-spot checks and inspections carried out by the Commission in

order to protect the European Communities’ financial interests against fraud and other

irregularities2 with a view to establishing whether there has been fraud, corruption or

any other illegal activity affecting the Union’s financial interests in connection with an

agreement or decision or a contract funded under this Regulation.

3. Without prejudice to paragraphs 1 and 2, agreements, decisions and contracts resulting

from the implementation of this Regulation shall contain provisions expressly

empowering the Commission, the ECSEL Joint Undertaking, the Court of Auditors

and OLAF to conduct such audits and investigations, according to their respective

competences.

4. The ECSEL Joint Undertaking shall ensure that the financial interests of its members

are adequately protected by carrying out or commissioning appropriate internal and

external controls.

1 OJ L 248, 18.9.2013, p. 1.2 OJ L 292, 15.11.1996, p. 2-5.

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5. The ECSEL Joint Undertaking shall accede to the Interinstitutional Agreement of

25 May 1999 between the European Parliament, the Council and the Commission

concerning internal investigations by OLAF1. The ECSEL Joint Undertaking shall

adopt the necessary measures to facilitate internal investigations conducted by OLAF.

Article 15

Confidentiality

Without prejudice to Article 16, the ECSEL Joint Undertaking shall ensure the protection of

sensitive information whose disclosure could damage the interests of its members or of

participants in the activities of the ECSEL Joint Undertaking.

Article 16

Transparency

1. Regulation (EC) No 1049/2001 of the European Parliament and of the Council of

30 May 2001 regarding public access to European Parliament, Council and

Commission documents2 shall apply to documents held by the ECSEL Joint

Undertaking.

2. The ECSEL Joint Undertaking’s Governing Board may adopt practical arrangements

for implementing Regulation (EC) No 1049/2001.

1 OJ L 136, 31.5.1999, p. 15.2 OJ L 145, 31.5.2001, p. 43.

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3. Without prejudice to Article 10, decisions taken by the ECSEL Joint Undertaking

pursuant to Article 8 of Regulation (EC) No 1049/2001 may form the subject of a

complaint to the Ombudsman under the conditions laid down in Article 228 of the

Treaty.

Article 17

Rules for participation and dissemination

1. Regulation (EU) No 1290/2013 shall apply to the actions funded by the ECSEL Joint

Undertaking. In accordance with that Regulation, the ECSEL Joint Undertaking shall

be considered as a funding body and shall provide financial support to indirect actions

as set out in clause 1(a) of the Statutes.

2. Specific criteria regarding the eligibility of individual applicants to receive funding

from ECSEL Participating States may be determined by the relevant funding

authorities. Such criteria could cover, inter alia, the applicant type, including legal

status and purpose, conditions of liability and viability, including financial

soundness, and the fulfilment of fiscal and social obligations.

3. When an ECSEL Participating State does not entrust the ECSEL Joint Undertaking

with the implementation of its contributions to the participants in indirect actions

through the grant agreements with participants concluded by the ECSEL Joint

Undertaking, it may determine specific rules regarding the eligibility of costs for the

funding of participants.

4. The specific criteria and rules shall be included in the work plan.

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Article 18

Support from the host state

An administrative agreement may be concluded between the ECSEL Joint Undertaking and the

State where its seat is located concerning privileges and immunities and other support to be

provided by that State to the ECSEL Joint Undertaking.

Article 19

Repeal and transitional provisions

1. Regulation (EC) No 72/2008 and Regulation (EC) No 74/2008 are repealed with effect

from the date of entry into force of the present Regulation.

2. Without prejudice to paragraph 1, actions initiated under Regulations (EC) Nos

72/2008 and 74/2008 including annual implementation plans adopted under those

Regulations shall continue to be governed by those Regulations until their completion.

3. In addition to the contributions referred to in Article 3(1) and Article 4(2), the

following contributions to the administrative costs of the ECSEL Joint Undertaking

shall be paid over the period 2014-2017 for the completion of the actions launched

under Regulations (EC) Nos 72/2008 and 74/2008: EUR 2 050 000 by the Union,

EUR 1 430 000 by the AENEAS association and EUR 975 000 by the ARTEMISIA

association.

The interim evaluation referred to in Article 11(1) shall include a final evaluation of

the ENIAC and ARTEMIS Joint Undertakings under Regulations (EC) Nos 72/2008

and 74/2008.

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4. The Executive Director appointed on the basis of Regulation (EC) No 72/2008 shall,

for the remaining period of the term of office, be assigned to the functions of the

Executive Director of the ECSEL Joint Undertaking as provided for in this Regulation

with effect from the date of entry into force of the present Regulation. The other

conditions of the Executive Director’s contract shall remain unchanged.

5. If the Executive Director appointed in accordance with paragraph 4 was in his/her first

term of office, he/she shall be appointed for the remaining period of term of office with

a possibility to extend the term of office up to 4 years in line with clause 8(4) of the

Statutes. If the Executive Director appointed in accordance with paragraph 4 was in

his/her second term of office, there is no possibility for extension. The Executive

Director whose term of office has been extended may not participate in another

selection procedure for the same post at the end of the overall period.

6. The contract of employment of the Executive Director appointed on the basis of

Regulation (EC) No 74/2008 shall be terminated before the date of entry into force of

this Regulation.

7. Without prejudice to paragraphs 4 and 5, this Regulation shall not affect the rights and

obligations of staff engaged under Regulations (EC) Nos 72/2008 and 74/2008. Their

contracts may be renewed under this Regulation in accordance with the Staff

Regulations and the Conditions of Employment of Other Servants and in line with the

budgetary constraints of the ECSEL Joint Undertaking.

8. The Executive Director of the ECSEL Joint Undertaking shall convene the first

meeting of the Governing Board and of the Public Authorities Board.

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9. Unless otherwise agreed between members of the ENIAC Joint Undertaking and of the

ARTEMIS Joint Undertaking pursuant to Regulations (EC) Nos 72/2008 and 74/2008,

all rights and obligations, including assets, debts or liabilities of the members of the

Joint Undertakings pursuant to those Regulations shall be transferred to the members

of the ECSEL Joint Undertaking pursuant to this Regulation.

10. Any unused appropriations under Regulations (EC) Nos 72/2008 and 74/2008 shall be

transferred to the ECSEL Joint Undertaking. Any amount due by the AENEAS

Association and the ARTEMISIA Association for the administrative appropriations of

the ENIAC and ARTEMIS Joint Undertakings over the period 2008-2013 shall be

transferred to the ECSEL Joint Undertaking according to arrangements to be agreed

with the Commission.

Article 20

Entry into force

This Regulation shall enter into force on the twentieth day following that of its publication in

the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at

For the Council

The President

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ANNEX

STATUTES

OF THE

ECSEL JOINT UNDERTAKING

1 - Tasks

The ECSEL Joint Undertaking shall carry out the following tasks:

(a) support financially research and innovation indirect actions, mainly in the form of

grants;

(b) ensure sustainable management of the ECSEL Joint Undertaking;

(c) develop close cooperation and ensure coordination with European (in particular

Horizon 2020), national and transnational activities, bodies and stakeholders, aiming at

fostering a fertile innovation environment in Europe, creating synergies and improving

exploitation of research and innovation results in the area of electronic components

and systems;

(d) define and make any necessary adjustments to the multiannual strategic plan;

(e) draw up and implement work plans for executing the multiannual strategic plan;

(f) initiate open calls for proposals, evaluate proposals, and award funding to indirect

actions through open and transparent procedures within the limits of available funds;

(g) publish information on the indirect actions;

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(h) monitor the implementation of the indirect actions and manage the grant agreements or

decisions;

(i) monitor overall progress towards the objectives of the ECSEL Joint Undertaking;

(j) information, communication, exploitation and dissemination activities by applying

mutatis mutandis the provisions of Article 28 of Regulation (EU) No 1291/2013,

including making the detailed information on results from calls for proposals

available and accessible in a common H2020 e-database;

(ja) liaising with a broad range of stakeholders including research organisations and

universities;

(k) any other task needed to achieve the objectives set out in Article 2.

2 - Members

1. The members of the ECSEL Joint Undertaking shall be the following:

(a) the Union, represented by the Commission,

(b) [Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France,

Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg,

Malta, Netherlands, Poland, Portugal, Romania, Slovak Republic, Slovenia,

Spain, Sweden, United Kingdom], and

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(c) upon acceptance of these Statutes by means of a letter of endorsement, [the

AENEAS association, an association registered under French law (registration

No 20070039) with its registered office in Paris (France); the ARTEMISIA

association, an association registered under Dutch law (registration No

17201341) with its registered office in Eindhoven (the Netherlands); the EPoSS

association, an association registered under … law (registration No ...) with its

registered office in ... (…)].

2. The countries who are members of the ECSEL Joint Undertaking are hereinafter

referred to as ‘ECSEL Participating States’. Each ECSEL Participating State shall

appoint its representatives in the bodies of the ECSEL Joint Undertaking and designate

the national entity or entities responsible for fulfilling its obligations with respect to

activities of the ECSEL Joint Undertaking.

3. The ECSEL Participating States together with the Commission shall hereinafter be

referred to as the ‘public authorities’ of the ECSEL Joint Undertaking.

4. The private associations shall hereinafter be referred to as the ‘private members’ of the

ECSEL Joint Undertaking. Constituent entities are the entities that constitute each

private member as defined in the member's statutes.

3 - Changes to membership

1. Member States of the Union or Associated Countries that are not listed in clause 2(1)

(b) shall become members of the ECSEL Joint Undertaking upon notification to the

Governing Board of their written acceptance of these Statutes and of any other

provisions governing the functioning of the ECSEL Joint Undertaking.

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2. Provided that they contribute to the financing referred to in clause 16(4) to achieve the

objectives of the ECSEL Joint Undertaking set out in Article 2 and accept these

Statutes, the following entities may apply to become a member of the ECSEL Joint

Undertaking:

(a) any other country than those referred under paragraph 1 pursuing research and

innovation policies or programmes in the area of electronic components and

systems;

(b) any other legal entity that directly or indirectly supports research and innovation

in a Member State or in an Associated Country.

3. Any application for membership to the ECSEL Joint Undertaking in accordance with

paragraph 2 shall be addressed to the Governing Board. It shall assess the application,

taking into account the relevance and the potential added value of the applicant for

achieving the objectives of the ECSEL Joint Undertaking. It shall then decide on the

application.

4. Any member may terminate its membership of the ECSEL Joint Undertaking. Such

termination shall become effective and irrevocable six months after notification to the

other members. As of then, the former member shall be discharged from any

obligations other than those approved or incurred by the ECSEL Joint Undertaking

prior to the notification of terminating the membership.

5. Membership of the ECSEL Joint Undertaking may not be transferred to a third party

without prior agreement of the Governing Board.

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6. The ECSEL Joint Undertaking shall publish on its website immediately upon any

change to membership pursuant to this clause an updated list of members of the

ECSEL Joint Undertaking together with the date when such change takes effect.

4 - Organisation of the ECSEL Joint Undertaking

The bodies of the ECSEL Joint Undertaking shall be:

(a) the Governing Board;

(b) the Executive Director;

(c) the Public Authorities Board;

(d) the Private Members Board.

5 - Composition of the Governing Board

The Governing Board shall be composed of representatives of the members of the ECSEL Joint

Undertaking.

Each member of the ECSEL Joint Undertaking shall appoint its representatives and a lead

delegate who shall hold the voting rights of the member in the Governing Board.

6 - Functioning of the Governing Board

1. The voting rights are distributed as follows: 1/3 for the private members collectively,

1/3 for the Commission, and 1/3 for the ECSEL Participating States collectively. The

members shall make every effort to achieve consensus. Failing consensus, the

Governing Board shall take its decisions by a majority of at least 75% of all votes,

including the votes of the members who are not in attendance.

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For the first two financial years, the voting rights of the ECSEL Participating States

shall be distributed as follows: one per cent for each ECSEL Participating State and

the remaining percentage distributed annually among the ECSEL Participating States

in proportion to their actual financial contributions in the past two years, including

their contributions to the ENIAC and ARTEMIS Joint Undertakings. For subsequent

years, the distribution of the voting rights of the ECSEL Participating States shall be

established annually in proportion to the funds they have actually committed to

indirect actions in the past two financial years.

The voting rights of the private members shall be distributed equally amongst the

private associations unless decided otherwise by the Private Members Board.

Voting rights for any new member of the ECSEL Joint Undertaking that is not a

Member State or an Associated Country shall be determined by the Governing Board

before that member joins the ECSEL Joint Undertaking.

2. The Governing Board shall elect a chairperson for a period of at least one year.

3. The Governing Board shall hold its ordinary meetings at least twice a year. It may hold

extraordinary meetings at the request of the Commission or of a majority of the

representatives of the ECSEL Participating States or of a majority of the private

members, or at the request of the chairperson, or at the request of the Executive

Director in accordance with clause 16(5). The meetings of the Governing Board shall

be convened by its chairperson and shall usually take place at the seat of the ECSEL

Joint Undertaking.

The quorum of the Governing Board shall be constituted by the Commission, the

private members and at least three ECSEL Participating States’ lead delegates.

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The Executive Director shall ▌ take part in the deliberations, unless decided otherwise

by the Governing Board, but shall have no voting rights.

The Governing Board may invite, on a case by case basis, other persons to attend its

meetings as observers, in particular representatives of EU regional authorities.

The representatives of the members of the ECSEL Joint Undertaking shall not be

personally liable for actions they have taken in their capacity as representatives on the

Governing Board.

The Governing Board shall adopt its own rules of procedure.

7 - Tasks of the Governing Board

1. The Governing Board shall have overall responsibility for the strategic orientation and

the operations of the ECSEL Joint Undertaking and shall supervise the implementation

of its activities.

1a. The Commission, within its role in the Governing Board, shall seek to ensure

coordination between the activities of the ECSEL Joint Undertaking and the

relevant activities of Horizon 2020 with a view to promoting synergies when

identifying priorities covered by collaborative research.

2. The Governing Board shall in particular carry out the following tasks:

(a) assess, accept or reject applications for new membership in accordance with

clause 3(3);

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(b) decide on the termination of membership in the ECSEL Joint Undertaking of any

member that does not fulfil its obligations;

(c) adopt the financial rules of the ECSEL Joint Undertaking in accordance with

Article 5;

(d) adopt the annual budget of the ECSEL Joint Undertaking, including the staff

establishment plan indicating the number of temporary posts by function group

and by grade, the number of contract staff and seconded national experts

expressed in full-time equivalents;

(e) exercise the appointing authority powers with respect to staff, in accordance with

Article 6(2);

(f) appoint, dismiss, extend the term of office of, provide guidance to and monitor

the performance of the Executive Director;

(g) approve the organisational structure of the Programme Office, referred to in

clause 9(5) upon recommendation by the Executive Director;

(h) adopt the multiannual strategic plan referred to in clause 21(1);

(i) adopt the work plan and the corresponding expenditure estimates referred to in

clause 21(2);

▌

(k) approve the annual activity report, including the corresponding expenditure

referred to in clause 22(1);

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(l) arrange as appropriate, for the establishment of an internal audit capability of the

ECSEL Joint Undertaking upon recommendation by the Executive Director;

(m) establish the ECSEL Joint Undertaking’s communications policy upon

recommendation by the Executive Director;

(n) where appropriate, lay down implementing rules pursuant to Article 6(3);

(o) where appropriate, lay down rules on the secondment of national experts to the

ECSEL Joint Undertaking and on the use of trainees pursuant to Article 7(2);

(p) where appropriate, set up advisory groups in addition to the bodies of the ECSEL

Joint Undertaking;

(q) where appropriate, submit to the Commission any request to amend this

Regulation proposed by any member of the ECSEL Joint Undertaking;

(r) be responsible for any task that is not specifically allocated to one of the bodies

of the ECSEL Joint Undertaking; it may assign such tasks to one of those bodies.

8 – Appointment, dismissal or extension of the term of office of the Executive Director

1. The Executive Director shall be appointed by the Governing Board, from a list of

candidates proposed by the Commission, following an open and transparent selection

procedure. The Commission shall associate the representation from the other members

of the ECSEL Joint Undertaking in the selection procedure as appropriate.

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In particular, an appropriate representation from the other members of the ECSEL

Joint Undertaking shall be ensured at the pre-selection stage of the selection procedure.

For that purpose, the ECSEL Participating States and the private members shall

appoint by common accord a representative as well as an observer on behalf of the

Governing Board.

2. The Executive Director is a member of staff and shall be engaged as a temporary agent

of the ECSEL Joint Undertaking under point (a) of Article 2 of the Conditions of

Employment of Other Servants of the Union.

For the purpose of concluding the contract of the Executive Director, the ECSEL Joint

Undertaking shall be represented by the chairperson of the Governing Board.

3. The term of office of the Executive Director shall be three years. By the end of that

period, the Commission associating the ECSEL Participating States and the private

members as appropriate shall undertake an assessment of the performance of the

Executive Director and the ECSEL Joint Undertaking’s future tasks and challenges.

4. The Governing Board, acting on a proposal from the Commission which takes into

account the assessment referred to in paragraph 3, may extend the term of office of the

Executive Director once, for no more than four years.

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5. An Executive Director whose term of office has been extended may not participate in

another selection procedure for the same post at the end of the overall period.

6. The Executive Director may be dismissed only upon a decision of the Governing

Board acting on a proposal from the Commission associating the ECSEL Participating

States and the private members as appropriate.

9 - Tasks of the Executive Director

1. The Executive Director shall be the chief executive responsible for the day-to-day

management of the ECSEL Joint Undertaking in accordance with the decisions of the

Governing Board.

2. The Executive Director shall be the legal representative of the ECSEL Joint

Undertaking. He/she shall be accountable to the Governing Board.

3. The Executive Director shall implement the budget of the ECSEL Joint Undertaking.

4. The Executive Director shall in particular carry out the following tasks in an

independent manner:

(a) consolidate and submit for adoption to the Governing Board the draft

multiannual strategic plan composed of the multiannual strategic research and

innovation agenda as proposed by the Private Members Board and the

multiannual financial perspectives from the public authorities;

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(b) prepare and submit for adoption to the Governing Board the draft annual budget,

including the corresponding staff establishment plan indicating the number of

temporary posts in each grade and function group and the number of contract

staff and seconded national experts expressed in full-time equivalents;

(c) prepare and submit for adoption to the Governing Board the draft work plan

including the scope of the calls for proposals needed to implement the research

and innovation activities plan as proposed by the Private Members Board and the

corresponding expenditure estimates as proposed by the public authorities;

(d) submit for approval to the Governing Board the annual accounts;

(e) prepare and submit for approval to the Governing Board the annual activity

report, including the corresponding expenditure;

(f) sign individual grant agreements or decisions;

(g) sign procurement contracts;

(h) implement the ECSEL Joint Undertaking’s communication policy;

(i) organise, direct and supervise the operations and the staff of the ECSEL Joint

Undertaking within the constraints of the delegation by the Governing Board as

provided for in Article 6(2);

(j) establish and ensure the functioning of an effective and efficient internal control

system and report any significant change to it to the Governing Board;

(k) ensure that risk assessment and risk management are performed;

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(l) take any other measures needed for assessing the progress of the ECSEL Joint

Undertaking towards its objectives as set out in Article 2;

(m) perform any other tasks entrusted or delegated to the Executive Director by the

Governing Board.

5. The Executive Director shall set up a Programme Office for the execution, under

his/her responsibility, of all support tasks arising from this Regulation. The

Programme Office shall be composed of the staff of the ECSEL Joint Undertaking and

shall in particular carry out the following tasks:

(a) provide support in establishing and managing an appropriate accounting system

in accordance with the financial rules of the ECSEL Joint Undertaking;

(b) manage the calls for proposals as provided for in the work plan and administer

the grant agreements or decisions;

(c) provide the members and the other bodies of the ECSEL Joint Undertaking all

relevant information and support necessary for them to perform their duties as

well as responding to their specific requests;

(d) act as the secretariat of the bodies of the ECSEL Joint Undertaking and provide

support to any advisory group set up by the Governing Board.

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10 - Composition of the Public Authorities Board

The Public Authorities Board shall be composed of representatives of the public authorities of

the ECSEL Joint Undertaking.

Each public authority shall appoint its representatives and a lead delegate who shall hold the

voting rights in the Public Authorities Board.

11 - Functioning of the Public Authorities Board

1. The voting rights in the Public Authorities Board shall be assigned to the public

authorities on an annual basis in proportion to their financial contribution to the

activities of the ECSEL Joint Undertaking for that year in accordance with clause

18(4), and with an upper limit for any given member of 50% of the total voting rights

in the Public Authorities Board.

If fewer than three ECSEL Participating States have communicated to the Executive

Director their financial contribution according to clause 18(4), the Commission shall

hold 50% of the voting rights and the remaining 50% shall be distributed equally

amongst the ECSEL Participating States.

The public authorities shall make every effort to achieve consensus. Failing consensus,

the Public Authorities Board shall take its decisions by a majority of at least 75% of all

votes, including the votes of the ECSEL Participating States that are not in attendance.

Each public authority shall have a right of veto on all issues concerning the use of its

own contribution to the ECSEL Joint Undertaking.

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2. The Public Authorities Board shall elect its chairperson for a period of at least two

years.

3. The Public Authorities Board shall hold its ordinary meetings at least twice a year. It

may hold extraordinary meetings at the request of the Commission or of a majority of

the representatives of the ECSEL Participating States, or at the request of the

chairperson. The meetings of the Public Authorities Board shall be convened by its

chairperson and shall normally take place at the seat of the ECSEL Joint Undertaking.

The quorum of the Public Authorities Board shall be constituted by the Commission

and at least three ECSEL Participating States’ lead delegates.

The Executive Director shall ▌take part in the deliberations, unless decided otherwise

by the Public Authorities Board, but shall have no voting rights.

Any Member State or Associated Country that is not a member of the ECSEL Joint

Undertaking shall be able to participate in the Public Authorities Board as an observer.

Observers shall receive all relevant documents and may give advice on any decision

taken by the Public Authorities Board. All such observers will be bound by the

confidentiality rules applying to the Public Authorities Board members.

The Public Authorities Board may appoint working groups where necessary under the

overall coordination of one or more public authorities.

The Public Authorities Board shall adopt its own rules of procedure.

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12 - Tasks of the Public Authorities Board

The Public Authorities Board shall:

(a) ensure that the principles of fairness and transparency are properly applied in the

allocation of public funding to participants in indirect actions;

(b) approve the rules of procedure for calls for proposals, and for the evaluation, selection

and monitoring of indirect actions;

(c) approve the launch of calls for proposals, in accordance with the work plan;

(d) rank proposals on the basis of the selection and award criteria, and considering their

contribution towards achieving the objectives of the call and synergy with national

priorities;

(e) decide on the allocation of public funding to selected proposals up to the limit of the

budgets available, taking into account the verifications carried out in accordance with

clause 18(5). This decision shall be binding on ECSEL Participating States without

any further evaluation or selection processes.

13 - Composition of the Private Members Board

The Private Members Board shall be composed of representatives of the private members of the

ECSEL Joint Undertaking.

Each private member shall appoint its representatives and a lead delegate who shall hold the

voting rights in the Private Members Board.

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14 - Functioning of the Private Members Board

1. The Private Members Board shall meet at least twice a year.

2. The Private Members Board may appoint working groups where necessary under the

overall coordination of one or more members.

3. The Private Members Board shall elect its chairperson.

4. The Private Members Board shall adopt its rules of procedure.

15 - Tasks of the Private Members Board

The Private Members Board shall:

(a) draw up and regularly update the draft multiannual strategic research and innovation

agenda referred to in clause 21(1) for achieving the objectives of the ECSEL Joint

Undertaking set out in Article 2;

(b) prepare each year the draft research and innovation activities plan for the next year, as

a basis for the calls for proposals referred to in clause 21(2);

(c) submit to the Executive Director the draft multiannual strategic research and

innovation agenda and the yearly draft research and innovation activities plan within

the deadlines set by the Governing Board;

(d) organise an advisory stakeholder forum that is open to all public and private

stakeholders having an interest in the field of electronic components and systems, to

inform them and collect feedback about the draft multiannual strategic research and

innovation agenda and draft research and innovation activities plan for a given year.

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16 - Sources of financing

1. The ECSEL Joint Undertaking shall be jointly funded by its members through

financial contributions paid in instalments and in-kind contributions consisting of the

costs incurred by the private members or their constituent entities and affiliated

entities in implementing indirect actions that are not reimbursed by the ECSEL Joint

Undertaking.

2. The administrative costs of the ECSEL Joint Undertaking shall ▌covered through the

financial contributions referred to in

(a) Article 3(1) for the Union contribution up to EUR 15 255 000,

(b) Article 4(2) for the contribution by the private members up to EUR 19 710 000

or 1 % of the sum of the total cost of all projects, whichever figure is higher,

but not exceeding EUR 48 million,

(c) and Article 19(2) for the completion of the actions launched under Regulations

72/2008 and 74/2008.

If part of the contribution for administrative costs is not used, it may be made available

to cover the operational costs of the ECSEL Joint Undertaking.

3. The operational costs of the ECSEL Joint Undertaking shall be covered through:

(a) a financial contribution by the Union;

(b) financial contributions from ECSEL Participating States.

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(c) in-kind contributions by the private members or their constituent entities and

affiliated entities consisting of the costs incurred by them in implementing

indirect actions less the contributions by the ECSEL Joint Undertaking, the

ECSEL Participating States and any other Union contribution to those costs.

4. The resources of the ECSEL Joint Undertaking entered in its budget shall be composed

of the following contributions:

(a) members’ financial contributions to the administrative costs;

(b) members’ financial contributions to the operational costs, including those from

the ECSEL Participating States which entrust the ECSEL Joint Undertaking in

accordance with clause 17(1);

(c) any revenue generated by the ECSEL Joint Undertaking;

(d) any other financial contributions, resources and revenues.

Any interest yielded by the contributions paid to the ECSEL Joint Undertaking shall be

considered to be its revenue.

5. Should any member of the ECSEL Joint Undertaking be in default of its commitments

concerning its agreed financial contribution, the Executive Director shall put this in

writing and set a reasonable period within which such default shall be remedied. If the

situation is not remedied within that period, the Executive Director shall convene a

meeting of the Governing Board to decide whether the defaulting member’s

membership is to be revoked or if any other measures are to be taken until its

obligations have been met.

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6. All the resources and activities of the ECSEL Joint Undertaking shall be intended for

the achievement of the objectives set out in Article 2.

7. The ECSEL Joint Undertaking shall own all assets generated by it or transferred to it

for the achievement of its objectives set out in Article 2.

8. Except when the ECSEL Joint Undertaking is wound up pursuant to clause 26, any

excess revenue over expenditure shall not be paid to the members of the ECSEL Joint

Undertaking.

17 - ECSEL Participating States contributions

1. The ECSEL Participating States may entrust the ECSEL Joint Undertaking with the

implementation of their contributions to the participants in indirect actions through the

grant agreements with participants concluded by the ECSEL Joint Undertaking. They

may also entrust the ECSEL Joint Undertaking with the payment of their contributions

to the participants or make the payments by themselves based on the verifications

made by the ECSEL Joint Undertaking.

2. Where an ECSEL Participating State does not entrust the ECSEL Joint Undertaking as

described in the first paragraph, it shall take all necessary measures to establish its own

grant agreements within a similar timeframe as the ECSEL Joint Undertaking grant

agreements ▌. The verification of the eligibility of costs performed by the ECSEL

Joint Undertaking as referred to in clause 18(7) may be used by the ECSEL

Participating State as part of its own payment process.

3. The arrangements for the cooperation between the ECSEL Participating States and the

ECSEL Joint Undertaking shall be established by means of an administrative

arrangement to be concluded between the entities designated by the ECSEL

Participating States for that purpose and the ECSEL Joint Undertaking.

308

4. When ECSEL Participating States entrust the ECSEL Joint Undertaking in accordance

with the first paragraph, the administrative arrangements referred to in paragraph 3

shall be supplemented with annual arrangements between the entities designated by the

ECSEL Participating States for that purpose and the ECSEL Joint Undertaking, laying

down the terms and conditions for the financial contribution of the ECSEL

Participating States to the ECSEL Joint Undertaking.

5. Member States, Associated Countries and third countries that are not members of the

ECSEL Joint Undertaking may conclude similar arrangements with the ECSEL Joint

Undertaking.

18 - Funding of indirect actions

1. The ECSEL Joint Undertaking shall support indirect actions through open and

competitive calls for proposals, and allocation of public funding within the limits of

the budgets available. Any public support under this initiative is without prejudice to

the procedural and material State aid rules.

2. The financial contribution from the public authorities shall be that referred to in clause

16(3)(a) and clause 16(3)(b) disbursed as a reimbursement of eligible costs to the

participants in indirect actions. The specific reimbursement rates by the Union and by

each ECSEL Participating State shall be included in the work plan.

▌

4. The public authorities shall communicate to the Executive Director their financial

commitments reserved for each call for proposals to be included in the work plan and

where applicable in accordance with clause 17(1) in time for the preparation of the

draft budget of the ECSEL Joint Undertaking, taking into account the scope of the

research and innovation activities addressed in the work plan.

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5. The Executive Director shall verify the eligibility of applicants for funding from the

Union and the ECSEL Participating States shall verify the eligibility of their

applicants against any predetermined national criteria for funding and communicate

the results to the Executive Director.

6. On the basis of the verifications provided in paragraph 5, the Executive Director shall

establish the proposed list of indirect actions to be retained for funding, detailed by

applicants, and communicate it to the Public Authorities Board who shall decide on the

maximum allocation of public funding in accordance with clause 12(e) and mandate

the Executive Director to establish agreements with the corresponding participants.

7. The ECSEL Joint Undertaking shall take all necessary measures, including the

verification of the eligibility of costs, for the disbursement of the public funding to the

respective participants in accordance with the arrangements referred to in clause 17(3)

and (4).

8. The ECSEL Participating States shall not require additional technical monitoring and

reporting other than those required by the ECSEL Joint Undertaking.

19 - Financial commitments

Financial commitments of the ECSEL Joint Undertaking shall not exceed the amount of

financial resources available or committed to its budget by its members.

20 - Financial year

The financial year shall run from 1 January to 31 December.

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21 - Operational and financial planning

1. The multiannual strategic plan shall specify the strategy and plans for achieving the

objectives of the ECSEL Joint Undertaking set out in Article 2 in the form of a

multiannual strategic research and innovation agenda from the Private Members Board

and multiannual financial perspectives from the public authorities. It should identify

research and innovation priorities for the development and adoption of key

competences for electronic components and systems across different application areas

in order to strengthen European competitiveness and help create new markets and

societal applications. It should be reviewed regularly in accordance with the evolution

of the industrial needs in Europe.

2. The Executive Director shall submit to the Governing Board for adoption a draft

annual or multiannual work plan which shall include the research and innovation

activities plan, the administrative activities and the corresponding expenditure

estimates.

3. The work plan shall be adopted by the end of the year prior to its implementation. The

work plan shall be made publicly available.

4. The Executive Director shall prepare the draft annual budget for the following year and

submit it to the Governing Board for adoption.

311

5. The annual budget for a particular year shall be adopted by the Governing Board by

the end of the previous year.

6. The annual budget shall be adapted in order to take into account the amount of the

Union contribution as set out in the Union budget.

22 - Operational and financial reporting

1. The Executive Director shall report annually to the Governing Board on the

performance of his/her duties in accordance with the financial rules of the ECSEL

Joint Undertaking.

Within two months of the closure of each financial year, the Executive Director shall

submit to the Governing Board for approval an annual activity report on the progress

made by the ECSEL Joint Undertaking in the previous calendar year, in particular in

relation to the annual work plan for that year. That report shall include, inter alia,

information on the following matters:

(a) research, innovation and other actions carried out and the corresponding

expenditure;

(b) the proposals submitted, including a breakdown by participant type, including

SMEs, and by country;

(c) the proposals selected for funding, with a breakdown by participant type,

including SMEs, and by country, and indicating the contributions of the ECSEL

Joint Undertaking and the ECSEL Participating States to the individual

participants and indirect actions.

2. Once approved by the Governing Board, the annual activity report shall be made

publicly available.

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3. By 1 March of the following financial year, the accounting officer of the ECSEL

Joint Undertaking shall send the provisional accounts to the Commission's

accounting officer and the Court of Auditors.

By 31 March of the following financial year, the ECSEL Joint Undertaking shall

send the report on the budgetary and financial management to the European

Parliament, the Council and the Court of Auditors.

On receipt of the Court of Auditors' observations on the ECSEL Joint Undertaking's

provisional accounts pursuant to Article 148 of Regulation (EU, Euratom) No

966/2012, the accounting officer shall draw up the ECSEL Joint Undertaking's final

accounts and the Executive Director shall submit them to the Governing Board for

an opinion.

The Governing Board shall deliver an opinion on the ECSEL Joint Undertaking's

final accounts.

The Executive Director shall, by 1 July following each financial year, send the final

accounts to the European Parliament, the Council, the Commission and the Court of

Auditors, together with the Governing Board's opinion.

The final accounts shall be published in the Official Journal of the European Union

by 15 November of the following year.

The Executive Director shall send the Court of Auditors a reply to its observations

made in its annual report by 30 September. The Executive Director shall also send

this reply to the Governing Board.

313

The Executive Director shall submit to the European Parliament, at the latter's

request, any information required for the smooth application of the discharge

procedure for the financial year in question, in accordance with Article 165(3) of

Regulation (EU, Euratom) No 966/2012.

▌

23 - Internal audit

The Commission's internal auditor shall exercise the same powers over the ECSEL Joint

Undertaking as those exercised in respect of the Commission.

24 - Liability of members and insurance

1. The financial liability of the members of the ECSEL Joint Undertaking for the debts of

the ECSEL Joint Undertaking shall be limited to their contribution already made for

the administrative costs.

2. The ECSEL Joint Undertaking shall take out and maintain appropriate insurance.

314

25 - Conflict of interest

1. The ECSEL Joint Undertaking, its bodies and staff shall avoid any conflict of interest

in carrying out their activities.

2. The ECSEL Joint Undertaking Governing Board shall adopt rules for the prevention

and management of conflicts of interest in respect of its members, bodies and staff. In

those rules, provision shall be made to avoid a conflict of interest for the

representatives of the members of the ECSEL Joint Undertaking serving in the

Governing Board or in the Public Authorities Board.

26 - Winding up

1. The ECSEL Joint Undertaking shall be wound up at the end of the period provided for

in Article 1.

2. The winding up procedure shall be automatically triggered if the Commission or all

private members withdraw from the ECSEL Joint Undertaking.

3. For the purpose of conducting the proceedings to wind up the ECSEL Joint

Undertaking, the Governing Board shall appoint one or more liquidators, who shall

comply with the decisions of the Governing Board.

4. When the ECSEL Joint Undertaking is being wound up, its assets shall be used to

cover its liabilities and the expenditure relating to its winding up. Any surplus shall be

distributed among the members at the time of the winding up in proportion to their

financial contribution to the ECSEL Joint Undertaking. Any such surplus distributed to

the Union shall be returned to the Union budget.

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5. An ad hoc procedure shall be set up to ensure appropriate management of any

agreement concluded or decision adopted by the ECSEL Joint Undertaking as well as

any procurement contract extending beyond the duration of the ECSEL Joint

Undertaking.

316

P7_TA-PROV(2014)0375

Fuel Cells and Hydrogen 2 Joint Undertaking *

European Parliament legislative resolution of 15 April 2014 on the proposal for a Council regulation on the Fuel Cells and Hydrogen 2 Joint Undertaking (COM(2013)0506 – C7-0256/2013 – 2013/0245(NLE))

(Consultation)

The European Parliament,

– having regard to the Commission proposal to the Council (COM(2013)0506),

– having regard to Article 187 and the first paragraph of Article 188 of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C7-0256/2013),

– having regard to Rule 55 of its Rules of Procedure,

– having regard to the report of the Committee on Industry, Research and Energy (A7-0094/2014),

1. Gives a favourable opinion on the Commission proposal as amended;

2. Calls on the Commission to alter its proposal accordingly, in accordance with Article 293(2) of the Treaty on the Functioning of the European Union;

3. Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;

4. Asks the Council to consult Parliament again if it intends to substantially amend the Commission proposal;

5. Instructs its President to forward its position to the Council and the Commission.

317

P7_TC1-NLE(2013)0245

Position of the European Parliament adopted on 15 April 2014 with a view to the adoption of Council regulation on the Fuel Cells and Hydrogen 2 Joint Undertaking

(Text with EEA relevance)

THE COUNCIL OF THE EUROPEAN UNION,

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

187 and the first paragraph of Article 188 thereof,

Having regard to the proposal from the European Commission,

Having regard to the opinion of the European Parliament1

Having regard to the opinion of the Economic and Social Committee2,

Whereas:

(1) Public-private partnerships in the form of Joint Technology Initiatives were initially

provided for in Decision No 1982/2006/EC of the European Parliament and of the

Council of 18 December 2006 concerning the Seventh Framework programme of the

European Community for research, technological development and demonstration

activities (2007-2013)3 .

1 Position of the European Parliament of 15 April 2014.2 OJ … [ESC opinion]3 OJ L 412, 30.12.2006, p. 1.

318

(2) Council Decision 2006/971/EC of 19 December 2006 concerning the Specific

Programme ‘Cooperation’ implementing the Seventh Framework Programme of the

European Community for research, technological development and demonstration

activities (2007-2013)1 identified specific public-private partnerships to be supported,

including a public-private partnership in the specific area of the Fuel Cells and

Hydrogen Joint Technology Initiative.

(3) Europe 2020 Strategy2 underscores the need to develop favourable conditions for

investment in knowledge and innovation so as to achieve smart, sustainable and

inclusive growth in the Union. Both European Parliament and Council have endorsed

this strategy.

(4) Regulation (EU) No 1291/2013 of the European Parliament and of the Council of

11 December 2013 establishing Horizon 2020 - The Framework Programme for

Research and Innovation (2014-2020)3 aims to achieve a greater impact on research and

innovation by combining Horizon 2020 Framework Programme and private sector funds

in public-private partnerships in key areas where research and innovation can contribute

to the Union's wider competitiveness goals, leverage private investment, and help tackle

societal challenges. Those partnerships should be based on a long-term commitment,

including a balanced contribution from all partners, be accountable for the

achievement of their objectives and be aligned with the Union's strategic goals

relating to research, development and innovation. The governance and functioning of

those partnerships should be open, transparent, effective and efficient and give the

opportunity to a wide range of stakeholders active in their specific areas to participate.

The involvement of the Union in those partnerships may take the form of financial

contributions to joint undertakings established on the basis of Article 187 of the Treaty

under Decision No 1982/2006/EC.

1 OJ L 400, 30.12.2006, p.862 COM(2010) 2020 final.3 OJ L 347, 20.12.2013, p. 104 [H2020 FP]

319

(5) In accordance with Regulation (EU) No 1291/2013 and Council Decision 2013/743/EU

of 3 December 2013 establishing the Specific Programme implementing Horizon 2020

(2014-2020)1 further support should be provided to joint undertakings established under

Decision (EU) No 1982/2006/EC under the conditions specified in Council Decision

2013/743/EU.

(6) The Fuel Cells and Hydrogen Joint Undertaking, set up by Regulation (EC) No.

521(2008) of the Council of 30 May 2008 setting up the Fuel Cells and Hydrogen Joint

Undertaking2 has demonstrated the potential of hydrogen as an energy carrier, and of

fuel cells as energy converters, to offer a pathway for clean systems that reduce

emissions, enhance energy security, and stimulate the economy. The interim evaluation

of the Fuel Cells and Hydrogen Joint Undertaking3 has shown that the Joint

Undertaking has served as a platform for creating of a strong partnership, for leveraging

public and private funding and for the strong involvement of industry, in particular

SMEs. The also recommended increase in the activities on hydrogen production, storage

and distribution has been taken up in the new objectives. Its research area should

therefore continue to be supported with the aim of developing, to the point of market

introduction, a portfolio of clean, efficient and affordable solutions.

1 OJ L 347, 20.12.2013, p. 965 [H2020 SP].2 OJ L153/1, 12.6.2008, p. 1-20, as amended by Council Regulation 1183/2011 of 14.11.2011,

OJ L302, 19.11.2011, p. 3-4.3 Communication from the Commission to the European Parliament, the Council, the European

Economic and Social Committee and the Committee of the Regions ‘Partnering in Research and Innovation’, COM(2011) 572 final, 21.09.2011

320

(7) Continued support for the Fuel Cells and Hydrogen research programme should also

take into account the experience acquired from the operations of the Fuel Cells and

Hydrogen Joint Undertaking including the results of its first interim evaluation, the

results of stakeholders' recommendations1, and be implemented using a more fit-for-

purpose structure and rules in order to enhance efficiency and to ensure simplification.

To this effect, the Fuel Cells and Hydrogen 2 Joint Undertaking should adopt financial

rules specific to its needs in accordance with Article 209 of Regulation (EU, Euratom)

No 966/2012 of the European Parliament and the Council of 25 October 2012 on the

financial rules applicable to the general budget of the Union2.

(8) The Members other than the Union of the Fuel Cells and Hydrogen Joint Undertaking

have expressed in writing their agreement for the research activities in the area of the

Fuel Cells and Hydrogen Joint Undertaking to be pursued within a structure better

adapted to the nature of a public-private partnership. It is appropriate that the Members

other than the Union to the Fuel Cells and Hydrogen 2 Joint Undertaking accept the

Statutes set out in Annex to this Regulation by means of a letter of endorsement.

(9) In order to achieve its objectives, the Fuel Cells and Hydrogen 2 Joint Undertaking

should provide financial support mainly in the form of grants to participants following

open and competitive calls for proposals.

(10) Contributions from Members other than the Union and their constituent entities or their

affiliated entities should not only be limited to the administrative costs of the Fuel Cells

and Hydrogen 2 Joint Undertaking and to the co-financing required to carry out research

and innovation actions supported by the Fuel Cells and Hydrogen 2 Joint Undertaking.

1 ‘Trends in investments, jobs and turnover in the Fuel cells and Hydrogen sector’ – results of stakeholders' consultation: http://www.fch-ju.eu/page/publications

2 OJ L 298, 26.10.2012, p. 84.

321

(11) Their contributions should also relate to additional activities to be undertaken by the

Members other than the Union or their constituent entities or their affiliated entities, as

specified in an additional activities plan. In order to get a proper overview of the

leverage effect those additional activities should represent contributions to the broader

Fuel Cells and Hydrogen Joint Technology Initiative.

(11a) Any eligible institution may become a participant or a coordinator in selected projects.

According to specific policy requirements or to the nature and objective of the action

set out in the work plan, it can be required that the participants are constituent

entities of a Member other than the Union, in accordance with Regulation (EU) No

1290/2013 of the European Parliament and of the Council of 11 December 2013

laying down the Horizon 2020 Rules for Participation and Dissemination in ‘Horizon

2020 - the Framework Programme for Research and Innovation (2014-2020)’1.

(12) The specificities of the Fuel Cells and Hydrogen sector, in particular that it is still a pre-

mature sector, without clear returns of investments and its main benefits being societal

ones, justify that the Union contribution is higher than the contribution from the

Members other than the Union. In order to encourage broader representativeness of the

groupings that are members of the Fuel Cells and Hydrogen 2 Joint Undertaking and

support participation of new constituent entities in the Joint Technology Initiative, the

Union contribution should be divided in two instalments, the second of which should be

made conditional upon additional commitments, in particular from new constituent

entities.

1 OJ L 347, 20.12.2013, p. 81 [H2020 RfP]

322

(13) In assessing the overall impact of the Fuel Cells and Hydrogen Joint Technology

Initiative, the investments from all legal entities other than the Union contributing to the

objectives of the Fuel Cells and Hydrogen Joint Technology Initiative will be taken into

account. Costs incurred by all legal entities on additional activities outside the work

plan of the Fuel Cells and Hydrogen 2 Joint Undertaking contributing to the

objectives of the Fuel Cells and Hydrogen Joint Undertaking should be declared 

upon signature of grant agreements.These overall investments to the Fuel Cells and

Hydrogen Joint Technology Initiative are expected to amount to at least EUR 665

million.

(14) Participation in indirect actions funded by the Fuel Cells and Hydrogen 2 Joint

Undertaking should comply with Regulation (EU) No 1290/2013. The Fuel Cells and

Hydrogen 2 Joint Undertaking should, moreover, ensure consistent application of

these rules based on relevant measures adopted by the Commission.

(14a) The Fuel Cells and Hydrogen 2 Joint Undertaking should also use electronic means

managed by the Commission to ensure openness, transparency and facilitate

participation. Therefore, the calls for proposals launched by the Fuel Cells and

Hydrogen 2 Joint Undertaking should also be published on the single portal for

participants as well as through other Horizon 2020 electronic means of dissemination

managed by the Commission. Moreover, relevant data on inter alia proposals,

applicants, grants and participants should be made available by the Fuel Cells and

Hydrogen 2 Joint Undertaking for inclusion in the Horizon 2020 reporting and

dissemination electronic systems managed by the Commission, in an appropriate

format and with the periodicity corresponding to the Commission’s reporting

obligations.

323

(14b) The Fuel Cells and Hydrogen 2 Joint Undertaking should take into account the

OECD definitions regarding Technological Readiness Level (TRL) in the

classification of technological research, product development and demonstration

activities.

(15) The Union financial contribution should be managed in accordance with the principle of

sound financial management and with the relevant rules on indirect management set out

in Regulation (EU, Euratom) No 966/2012 and Commission delegated Regulation (EU)

No 1268/2012 of 29 October 2012 on the rules of application of Regulation (EU,

Euratom) No 966/20121.

(16) For the purpose of simplification, administrative burdens should be reduced for all

parties. Double audits and disproportionate documentation and reporting should be

avoided. Audits of recipients of Union funds under this Regulation should be carried out

in ▌compliance with Regulation (EU) No 1291/2013.

(17) The financial interests of the Union and of the other members of the Fuel Cells and

Hydrogen 2 Joint Undertaking should be protected through proportionate measures

throughout the expenditure cycle, including the prevention, detection and investigation

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

appropriate, administrative and financial penalties in accordance with Regulation (EU,

Euratom) No 966/2012.

(18) The Commission's internal auditor should exercise the same powers over the Fuel Cells

and Hydrogen 2 Joint Undertaking as those exercised in respect of the Commission.

1 OJ L 362, 31.12.2012, p.1

324

(19) In view of the specific nature and the current status of the Joint Undertakings, and in

order to ensure continuity with the 7th Framework Programme, the Joint

Undertakings should continue to be subject to a separate discharge. By way of

derogation from Articles 60(7) and 209 of Regulation (EU, Euratom) No 966/2012,

discharge for the implementation of the budget of the Fuel Cells and Hydrogen 2

Joint Undertaking should therefore be given by the European Parliament on the

recommendation of the Council. Hence, the reporting requirements set out in Article

60(5) should not apply to the contribution of the Union to the Fuel Cells and

Hydrogen 2 Joint Undertaking but they should be aligned to the extent possible to the

ones foreseen for bodies under Article 208 of Regulation (EU, Euratom) No 966/2012.

The auditing of accounts and of the legality and regularity of the underlying

transactions should be undertaken by the Court of Auditors.

(19a) The Fuel Cells and Hydrogen 2 Joint Undertaking should operate in an open and

transparent way providing all relevant information in a timely manner to its

appropriate bodies as well as promoting its activities, including information and

dissemination activities to the wider public. The rules of procedure of the bodies of the

Joint Undertaking should be made publicly available.

325

(20) In accordance with the principles of subsidiarity and proportionality as set out in Article

5 of the Treaty on the European Union, the objectives of the Fuel Cells and Hydrogen 2

Joint Undertaking in strengthening industrial research and innovation across the Union

cannot be sufficiently achieved by the Member States and can therefore, by reason of

avoiding duplication, retaining critical mass and ensuring that public financing is used in

an optimal way, be better achieved by the Union; this Regulation confines itself to the

minimum required in order to achieve those objectives and does not go beyond what is

necessary for that purpose.

(20a) Horizon 2020 should contribute to the closing of the research and innovation divide

within the Union by promoting synergies with the European Structural and

Investment Funds (ESIF). Therefore the Fuel Cells and Hydrogen 2 Joint

Undertaking should seek to develop close interactions with the ESIF, which can

specifically help to strengthen local, regional and national research and innovation

capabilities in the area of the Fuel Cells and Hydrogen 2 Joint Undertaking and

underpin smart specialisation efforts.

(21) The Fuel Cells and Hydrogen Joint Undertaking was set up for a period up to 31

December 2017. The Fuel Cells and Hydrogen 2 Joint Undertaking should provide

continued support to the Fuel Cells and Hydrogen research programme by

implementing the remaining actions initiated under Regulation (EC) No 521/2008 in

accordance with Regulation (EC) No 521/2008. The transition from the Fuel Cells and

Hydrogen Joint Undertaking to the Fuel Cells and Hydrogen 2 Joint Undertaking should

be aligned and synchronized with the transition from the Seventh Framework

Programme to the Horizon 2020 Framework Programme to ensure optimal use of the

funding available for research. In the interest of legal certainty and clarity, Council

Regulation (EC) No. 521/2008 should therefore be repealed and transitional provisions

should be set out.

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(21a) With a view to the overall aim of Horizon 2020 to achieve greater simplification and

coherence, all calls for proposals under the Fuel Cells and Hydrogen 2 Joint

Undertaking should take into account the duration of the Horizon 2020 Framework

Programme.

HAS ADOPTED THIS REGULATION:

Article 1

Establishment

1. For the implementation of the Joint Technology Initiative on Fuel Cells and Hydrogen,

a joint undertaking within the meaning of Article 187 of the Treaty (hereinafter ‘FCH

2 Joint Undertaking’), is established until 31 December 2024. In order to take into

account the duration of the Horizon 2020 Framework Programme, calls for

proposals under FCH 2 Joint Undertaking shall be launched at the latest by 31

December 2020. In duly justified cases calls for proposals may be launched until

31 December 2021.

2. The FCH 2 Joint Undertaking shall replace and succeed the FCH Joint Undertaking as

established by Council Regulation (EC) No 521/2008.

3. The FCH 2 Joint Undertaking shall constitute a body entrusted with the

implementation of a public-private partnership referred to in Article 209 of Regulation

(EU, Euratom) No 966/2012 of the European Parliament and the Council1.

1 OJ L 298, 26.10.2012, p. 1.

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4. The FCH 2 Joint Undertaking shall have legal personality. In each of the Member

States, it shall enjoy the most extensive legal capacity accorded to legal persons under

the laws of those Member States. It may, in particular, acquire or dispose of movable

and immovable property and may be party to legal proceedings.

5. The seat of the FCH 2 Joint Undertaking shall be located in Brussels, Belgium.

6. The Statutes of the FCH 2 Joint Undertaking are set out in the Annex.

Article 2

Objectives

1. The FCH 2 Joint Undertaking shall have the following objectives:

(a) to contribute to the implementation of Regulation (EU) No 1291/2013 ▌, and in

particular part III of Council Decision 2013/743/EU ▌;

(b) to contribute to the objectives of the Joint Technology Initiative on Fuel Cells

and Hydrogen, through the development of a strong, sustainable and globally

competitive fuel cells and hydrogen sector in the Union.

2. It shall, in particular:

– reduce the production cost of fuel cell systems to be used in transport

applications, while increasing their lifetime to levels competitive with

conventional technologies,

– increase the electrical efficiency and the durability of the different fuel cells used

for power production, while reducing costs, to levels competitive with

conventional technologies,

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– increase the energy efficiency of production of hydrogen mainly from water

electrolysis and renewable sources while reducing operating and capital costs,

so that the combined system of the hydrogen production and the conversion

using the fuel cell system is competitive with the alternatives available in the

marketplace ▌;

– demonstrate on a large scale the feasibility of using hydrogen to support

integration of renewable energy sources into the energy systems, including

through its use as a competitive energy storage medium for electricity produced

from renewable energy sources;

– reduce the use of the EU defined "Critical raw materials", for instance via low

or platinum free resources and through recycling or reducing or avoiding the

use of rare earth elements.

Article 3

Union financial contribution

1. The maximum Union contribution, including EFTA appropriations, to the FCH 2 Joint

Undertaking to cover administrative costs and operational costs shall be EUR 665

million, which shall consist of:

(a) up to EUR 570 million corresponding to the contribution committed in accordance

with Article 4(1),

(b) up to EUR 95 million to match any additional contribution committed above the

minimum amount specified in Article 4(1).

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The contribution shall be paid from the appropriations in the general budget of the

Union allocated to the Horizon 2020 Specific Programme implementing the Horizon

2020 Framework Programme in accordance with the relevant provisions of Article

58(1)(c)(iv) and Articles 60 and 61 of Regulation (EU, Euratom) No 966/2012 for

bodies referred to in Article 209 of that Regulation.

2. The arrangements for the Union financial contribution shall be set out in a delegation

agreement and annual transfer of funds agreements to be concluded between the

Commission, on behalf of the Union, and the FCH 2 Joint Undertaking.

3. The delegation agreement referred to in paragraph 2 shall address the elements set out

in Article 58(3) and Articles 60 and 61 of Regulation (EU, Euratom) No 966/2012 and

in Article 40 of Commission delegated Regulation (EU) No 1268/2012 as well as inter

alia the following:

(a) the requirements for the FCH 2 Joint Undertaking's contribution regarding the

relevant performance indicators referred to in Annex II to Council

Decision 2013/743/EU;

(b) the requirements for the FCH 2 Joint Undertaking's contribution in view of the

monitoring referred to in Annex III to Council Decision 2013/743/EU;

(c) the specific performance indicators related to the functioning of the FCH 2 Joint

Undertaking;

(d) the arrangements regarding the provision of data necessary to ensure that the

Commission is able to meet its dissemination and reporting obligations,

including on the single portal for participants as well as through other

Horizon 2020 electronic means of dissemination managed by the Commission;

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(da) provisions for the publication of calls for proposals of the FCH 2 Joint

Undertaking also on the single portal for participants as well as through other

Horizon 2020 electronic means of dissemination managed by the Commission;

(e) the use of and changes to human resources, in particular recruitment by function

group, grade and category, the reclassification exercise and any changes to the

number of staff members.

Article 4

Contributions of Members other than the Union

1. The Members of the FCH 2 Joint Undertaking other than the Union shall make or

arrange for their constituent entities or their affiliated entities to make a total

contribution of at least EUR 380 million over the period defined in Article 1.

2. The contribution referred to in paragraph 1 shall consist of the following:

(a) contributions to the FCH 2 Joint Undertaking as laid down in clause 13(2) and

clause 13(3)(b) of the Statutes contained in the Annex.

(b) in-kind contributions of at least EUR 285 million over the period defined in

Article 1 by the Members other than the Union or their constituent entities or

their affiliated entities, consisting of the costs incurred by them in implementing

additional activities outside the work plan of the FCH 2 Joint Undertaking

contributing to the objectives of the FCH Joint Technology Initiative. Other

Union funding programmes may support those costs in compliance with the

applicable rules and procedures. In such cases, Union financing shall not

substitute for the in kind contributions from the Members other than the Union

or their constituent entities or their affiliated entities.

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Those costs referred to in point (b) shall not be eligible for financial support by the

FCH 2 Joint Undertaking. The corresponding activities shall be set out in an annual

additional activities plan that shall indicate the estimated value of those contributions.

3. The Members of the FCH 2 Joint Undertaking other than the Union shall report each

year by 31 January to the Governing Board of the FCH 2 Joint Undertaking on the

value of the contributions referred to in paragraph 2 made in each of the previous

financial years.

4. For the purpose of valuing the contributions referred to in point (b) of paragraph 2 and

clause 13(3)(b) of the Statutes contained in the Annex, the costs shall be determined

according to the usual cost accounting practices of the entities concerned, to the

applicable accounting standards of the country where each entity is established, and to

the applicable International Accounting Standards / International Financial Reporting

Standards. The costs shall be certified by an independent external auditor appointed by

the entity concerned. The valuation method may be verified by the FCH 2 Joint

Undertaking should there be any uncertainty arising from the certification. For the

purposes of this Regulation, the costs incurred in additional activities shall not be

audited by the FCH 2 Joint Undertaking or any Union body.

5. The Commission may terminate, proportionally reduce or suspend the Union financial

contribution to the FCH 2 Joint Undertaking or trigger the winding up procedure

referred to in clause 21(2) of the Statutes contained in the Annex if those Members or

their constituent entities or their affiliated entities do not contribute, contribute only

partially or contribute late with regard to the contributions referred to in paragraph 2.

The Commission decision shall not hinder the reimbursement of eligible costs

already incurred by the Members by the time of the notification of the decision to the

FCH 2 Joint Undertaking.

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Article 5

Financial rules

Without prejudice to Article 12, the FCH 2 Joint Undertaking shall adopt its specific financial

rules in accordance with Article 209 of Regulation (EU, Euratom) No 966/2012 and Regulation

(EU) No … [Delegated Regulation on the model Financial Regulation for PPPs.]

Article 6

Staff

1. The Staff Regulations of Officials and the Conditions of Employment of Other

Servants of the European Union as laid down by Council Regulation (EEC, Euratom,

ECSC) No 259/681 and the rules adopted by agreement between the institutions of the

Union for giving effect to those Staff Regulations and those Conditions of

Employment of Other Servants shall apply to the staff employed by the FCH 2 Joint

Undertaking.

2. The Governing Board shall exercise, with respect to the staff of the FCH 2 Joint

Undertaking, the powers conferred by the Staff Regulations on the Appointing

Authority and by the Conditions of Employment of Other Servants on the Authority

Empowered to Conclude Contract of Employment (hereinafter ‘the appointing

authority powers’).

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 Article 6 of

the Conditions of Employment of Other Servants delegating the relevant appointing

authority powers to the Executive Director and defining the conditions under which

this delegation of powers can be suspended. The Executive Director is authorised to

sub-delegate those powers.

1 OJ 56, 4.3.1968, p. 1

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Where exceptional circumstances so require, the Governing Board may by way of a

decision temporarily suspend the delegation of the appointing authority powers to the

Executive Director and those sub-delegated by the latter and exercise them itself or

delegate them to one of its members or to a staff member of the Joint Undertaking

other than the Executive Director.

3. The Governing Board shall adopt appropriate implementing rules to the Staff

Regulations and the Conditions of Employment of Other Servants in accordance with

Article 110 of the Staff Regulations.

4. The staff resources shall be determined by the staff establishment plan of the FCH 2

Joint Undertaking indicating the number of temporary posts by function group and by

grade and the number of contract staff expressed in full-time equivalents, in line with

its annual budget.

5. The staff of the FCH 2 Joint Undertaking shall consist of temporary staff and contract

staff.

6. All costs related to the staff shall be borne by the FCH 2 Joint Undertaking.

Article 7

Seconded national experts and trainees

1. The FCH 2 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 information on staff as referred to

in Article 6(4) of this Regulation in line with the annual budget.

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2. The Governing Board shall adopt a decision laying down rules on the secondment of

national experts to the FCH 2 Joint Undertaking and on the use of trainees.

Article 8

Privileges and Immunities

The Protocol on the Privileges and Immunities of the Union shall apply to the FCH 2 Joint

Undertaking and its staff.

Article 9

Liability of the FCH 2 Joint Undertaking

1. The contractual liability of the FCH 2 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 FCH 2 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 FCH 2 Joint Undertaking in respect of the liability referred to in

paragraphs 1 and 2 and the costs and expenses incurred in connection therewith shall

be considered as expenditure of the FCH 2 Joint Undertaking and shall be covered by

the resources of the FCH 2 Joint Undertaking.

4. The FCH 2 Joint Undertaking shall be solely responsible for meeting its obligations.

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Article 10

Jurisdiction of the Court of Justice and applicable law

1. The Court of Justice shall have jurisdiction ▌:

▌

(b) pursuant to any arbitration clause contained in agreements, decisions or contracts

concluded by the FCH 2 Joint Undertaking;

(c) in disputes relating to compensation for damage caused by the staff of the FCH 2

Joint Undertaking in the performance of their duties;

(d) in any dispute between the FCH 2 Joint Undertaking and its servants within the

limits and under the conditions laid down in the Staff Regulations of Officials

and the Conditions of Employment of Other Servants of the European Union.

2. Regarding any matter not covered by this Regulation or by other acts of Union law, the

law of the State where the seat of the FCH 2 Joint Undertaking is located shall apply.

Article 11

Evaluation

1. By 30 June 2017 the Commission shall carry out, with the assistance of independent

experts, an interim evaluation of the FCH 2 Joint Undertaking, which shall assess,

notably, the level of participation in, and contribution to, the indirect actions both by

the constituent entities of the Members other than the Union or their affiliated entities,

and also by other legal entities. The Commission shall prepare a report on that

evaluation which includes conclusions of the evaluation and observations by the

Commission. The Commission shall send that report to the European Parliament and

to the Council by 31 December 2017. The results of the interim evaluation of FCH 2

Joint Undertaking shall be taken into account in the in-depth assessment and in the

interim evaluation referred to in Article 32 of Regulation (EU) No 1291/2013.

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2. On the basis of the conclusions of the interim evaluation referred to in paragraph 1, the

Commission may act in accordance with Article 4(5), or take any other appropriate

action.

3. Within six months after the winding up of the FCH 2 Joint Undertaking, but no later

than two years after the triggering of the winding up procedure referred to in clause 21

of the Statutes contained in the Annex, the Commission shall conduct a final

evaluation of the FCH 2 Joint Undertaking. The results of that final evaluation shall be

presented to the European Parliament and to the Council.

Article 12

Discharge

By way of derogation from Articles 60(7) and 209 of Regulation No 966/2012, the discharge

for the ▌implementation of the budget of the FCH 2 Joint Undertaking shall be ▌given by the

European Parliament, upon recommendation of the Council ▌in accordance with the procedure

provided for in the financial rules of the ▌FCH 2 Joint Undertaking ▌.

Article 13

Ex-post audits

1. Ex-post audits of expenditure on indirect actions shall be carried out by the FCH 2

Joint Undertaking in accordance with Article 29 of Regulation (EU) No 1291/2013 as

part of the Horizon 2020 Framework Programme indirect actions.

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2. ▌The Commission may decide to carry out the audits referred to in paragraph 1. It

shall do so in accordance with the applicable rules, in particular Regulation (EU,

Euratom) No 966/2012, Regulation (EU) No 1291/2013 and Regulation (EU) No

1290/2013.

Article 14

Protection of the financial interests of the Members

1. ▌The FCH 2 Joint Undertaking shall grant Commission staff and other persons

authorised by the Commission or the Joint Undertaking, as well as the Court of

Auditors, access to its sites and premises and to all the information, including

information in electronic format, needed in order to conduct their audits.

2. The European Anti-fraud Office (OLAF) may carry out investigations, including on-

the-spot checks and inspections, in accordance with the provisions and procedures laid

down in Regulation (EU, Euratom) No 883/2013 of the European Parliament and of

the Council1▌ and Council Regulation (Euratom, EC) No 2185/962▌ 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 or

decision or a contract funded under this Regulation.

3. Without prejudice to paragraphs 1 and 2, contracts, agreements and decisions, resulting

from the implementation of this Regulation shall contain provisions expressly

empowering the Commission, the FCH 2 Joint Undertaking, the Court of Auditors and

OLAF to conduct such audits and investigations, according to their respective

competences.

1 OJ L 248, 18.9.2013, p.1.2 OJ L 292, 15.11.1996, p.2-5

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4. The FCH 2 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 FCH 2 Joint Undertaking shall accede to the Interinstitutional Agreement of

25 May 1999 between the European Parliament, the Council and the Commission

concerning internal investigations by OLAF1. The FCH 2 Joint Undertaking shall

adopt the necessary measures needed to facilitate internal investigations conducted by

OLAF.

Article 15

Confidentiality

Without prejudice to Article 16, the FCH 2 Joint Undertaking shall ensure the protection of

sensitive information whose disclosure could damage the interests of its Members or of

participants in the activities of the FCH 2 Joint Undertaking.

Article 16

Transparency

1. Regulation (EC) No 1049/2001 of the European Parliament and of the Council

regarding public access to European Parliament, Council and Commission documents2,

shall apply to documents held by the FCH 2 Joint Undertaking.

2. The FCH 2 Joint Undertaking Governing Board may adopt practical arrangements for

implementing Regulation (EC) No 1049/2001.

1 OJ L 136, 31.5.1999, p. 152 OJ L 145, 31.5.2001, p. 43

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3. Without prejudice to Article 10, decisions taken by the FCH 2 Joint Undertaking

pursuant to Article 8 of Regulation (EC) No 1049/2001 may form the subject of a

complaint to the Ombudsman under the conditions laid down in Article 228 of the

Treaty.

Article 17

Rules for participation and dissemination

Regulation (EU) No 1290/2013 shall apply to the actions funded by the FCH 2 Joint

Undertaking. In accordance with that Regulation, the FCH 2 Joint Undertaking shall be

considered as a funding body and shall provide financial support to indirect actions as set out in

clause 1 of the Statutes contained in the Annex.

Pursuant to Article 9(5) of the Regulation (EU) No 1290/2013, work plans may provide for

justified additional conditions according to specific policy requirements or to the nature and

objective of the action.

Article 18

Support from the host State

An administrative agreement may be concluded between the FCH 2 Joint Undertaking and the

State where its seat is located concerning privileges and immunities and other support to be

provided by that State to the FCH 2 Joint Undertaking.

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Article 19

Repeal and transitional provisions

1. Regulation (EC) No 521/2008 setting up the FCH Joint Undertaking is repealed with

effect from the date of entry into force of this Regulation.

2. Without prejudice to paragraph 1, actions initiated under Regulation (EC) No

521/2008 and financial obligations related to those actions shall continue to be

governed by that Regulation until their completion.

The interim evaluation referred to in Article 11(1) shall include a final evaluation of

the FCH Joint Undertaking operations under Regulation (EC) No 521/2008.

3. This Regulation shall not affect the rights and obligations of staff engaged under

Regulation (EC) No 521/2008.

The employment contracts of staff referred to in the first subparagraph may be

renewed under this Regulation in accordance with the Staff Regulations.

In particular, the Executive Director appointed under Regulation No 521/2008 shall,

for the remaining period of term of office, be assigned to the functions of the

Executive Director as provided for in this Regulation with effect from the date of entry

into force of this Regulation. The other conditions of contract shall remain unchanged.

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4. Unless otherwise agreed between Members pursuant to Regulation (EC) No 521/2008,

all rights and obligations including assets, debts or liabilities of the Members pursuant

to that Regulation are transferred to the Members pursuant to this Regulation.

5. Any unused appropriations under Regulation (EC) No 521/2008 shall be transferred to

the FCH 2 Joint Undertaking.

Article 20

Entry into force

This Regulation shall enter into force on the twentieth day following that of its publication in

the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at

For the Council

The President

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ANNEX

STATUTES OF THE FCH 2 JOINT UNDERTAKING

1 - Tasks

The FCH 2 Joint Undertaking shall carry out the following tasks:

(a) supporting financially research and innovation indirect actions mainly in the form of

grants;

(b) reaching the critical mass of research effort to give confidence to industry, public and

private investors, decision makers and other stakeholders to embark on a long-term

programme;

(c) integrating research and technology development and focus on achieving long-term

sustainability and industrial competitiveness targets for cost, performance and

durability and overcome critical technology bottlenecks;

(d) stimulating innovation and the emergence of new value chains;

(e) facilitating interaction between industry, universities and research centres;

(f) promoting the involvement of SMEs in its activities, in line with the objectives of the

Horizon 2020 Framework Programme;

(g) performing broadly-conceived socio-techno-economic research to assess and monitor

technological progress and nontechnical barriers to market entry;

(h) encouraging the development of new regulations and standards and review existing

ones to eliminate artificial barriers to market entry and to support inter-changeability,

inter-operability, cross-border trading, and export markets;

(i) ensuring the efficient management of the Joint Undertaking on Fuel Cells and

Hydrogen;

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(j) committing Union funding and mobilise the private sector and other public sector

resources needed to implement fuel cells and hydrogen research and innovation

activities;

(k) fostering and facilitating the involvement of industry in additional activities

implemented outside indirect actions;

(l) information, communication, exploitation and dissemination activities by applying

mutatis mutandis the provisions of Article 28 of Regulation (EU) No 1291/2013,

including making the detailed information on results from calls for proposals

available and accessible in a common H2020 e-database;

(la) liaising with a broad range of stakeholders including research organisations and

universities;

(m) any other task needed to achieve the objectives set out in Article 2 of this Regulation.

2 - Members

The Members of the FCH 2 Joint Undertaking shall be the following:

(a) the Union, represented by the Commission,

(b) upon acceptance of these Statutes by means of a letter of endorsement, the New Energy

World Industry Grouping AISBL, a non-profit organisation established under Belgian

Law (registration number: 890025478, with its permanent office in Brussels, Belgium)

(hereinafter referred to as the ‘Industry Grouping’), and

(c) upon acceptance of these Statutes by means of a letter of endorsement, the New

European Research Grouping on Fuel Cells and Hydrogen AISBL, a non-profit

organisation established under Belgian Law (registration number: 0897.679.372, with its

permanent office in Brussels, Belgium) (hereinafter referred to as the ‘Research

Grouping’).

Constituent entities are the entities that constitute each Member of the Joint Undertaking

other than the Union, according to that Member's Statutes.

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3 - Changes to membership

1. Any Member may terminate its membership to the FCH 2 Joint Undertaking. The

termination shall become effective and irrevocable six months after notification to the

other Members. As of then, the former Member shall be discharged from any

obligations other than those approved or incurred by the FCH 2 Joint Undertaking

prior to terminating the membership.

2. Membership of the FCH 2 Joint Undertaking may not be transferred to a third party

without prior agreement of the Governing Board.

3. The FCH 2 Joint Undertaking shall publish on its website immediately upon any

change to membership pursuant to this clause an updated list of Members of the FCH 2

Joint Undertaking together with the date when such change takes effect.

4 - Organisation of the FCH 2 Joint Undertaking

1. The bodies of the FCH 2 Joint Undertaking shall be:

(a) the Governing Board;

(b) the Executive Director;

(c) the Scientific Committee;

(d) the States Representatives Group;

(e) the Stakeholder Forum.

2. The Scientific Committee, the States Representatives Group and the Stakeholder

Forum shall be advisory bodies to the FCH 2 Joint Undertaking.

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5 - Composition of the Governing Board

The Governing Board shall be composed of the following:

(a) three representatives of the Commission;

(b) six representatives of the Industry Grouping, at least one of which shall represent SMEs;

(c) one representative of the Research Grouping.

6 - Functioning of the Governing Board

1. The Commission shall hold 50 % of the voting rights. The vote of the Commission

shall be indivisible. The Industry Grouping shall hold 43 % of the voting rights and the

Research Grouping 7 % of the voting rights. The Members shall use their best efforts

to achieve consensus. Failing consensus, the Governing Board shall take its decisions

by a majority of at least 75 % of all votes, including the votes of those who are not in

attendance.

2. The Governing Board shall elect its chairperson for a period of two years.

3. The Governing Board shall hold its ordinary meetings at least twice a year. It may hold

extraordinary meetings at the request of the Commission or of a majority of the

representatives of the Industry Grouping and the Research Grouping or at the request

of the chairperson. The meetings of the Governing Board shall be convened by its

chairperson and shall usually take place at the seat of the FCH 2 Joint Undertaking.

The Executive Director shall have the right to take part in the deliberations, but shall

have no voting rights.

The chairperson of the States Representatives Group shall have the right to attend

meetings of the Governing Board as an observer and take part in its deliberations, but

shall have no voting rights.

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The chairperson of the Scientific Committee shall have the right, whenever issues

falling within its tasks are discussed, to attend meetings of the Governing Board as

an observer and take part in its deliberations, but shall have no voting rights.

The Governing Board may invite, on a case by case basis, other persons to attend its

meetings as observers, in particular representatives of regional authorities of the

Union.

The representatives of the Members shall not be personally liable for actions they have

taken in their capacity as representatives on the Governing Board.

The Governing Board shall adopt its own rules of procedure.

7 - Tasks of the Governing Board

1. The Governing Board shall have overall responsibility for the strategic orientation and

the operations of the FCH 2 Joint Undertaking and shall supervise the implementation

of its activities.

1a. The Commission, within its role in the Governing Board, shall seek to ensure

coordination between the activities of the FCH 2 Joint Undertaking and the relevant

activities of Horizon 2020 with a view to promoting synergies when identifying

priorities covered by collaborative research.

2. The Governing Board shall in particular carry out the following tasks:

(a) decide on the termination of the membership in the FCH 2 Joint Undertaking of

any Member that does not fulfil its obligations;

(b) adopt the Financial rules of the FCH 2 Joint Undertaking in accordance with

Article 5 of this Regulation;

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(c) adopt the annual budget of the FCH 2 Joint Undertaking, including the staff

establishment plan indicating the number of temporary posts by function group

and by grade as well as the number of contract staff and seconded national

experts expressed in full-time equivalents;

(d) exercise the appointing authority powers with respect of the staff, in accordance

with Article 6(2) of this Regulation;

(e) appoint, dismiss, extend the term of office of, provide guidance to and monitor

the performance of the Executive Director;

(f) approve the organisational structure of the Programme Office referred to in

clause 9(5) upon recommendation by the Executive Director;

(g) adopt the annual work plan and the corresponding expenditure estimates, as

proposed by the Executive Director, after having consulted the Scientific

Committee and the States Representatives Group;

(h) approve the annual additional activities plan referred to in Article 4(2)(b) of this

Regulation on the basis of a proposal from the Members other than the Union

and after having consulted, where appropriate, an ad hoc advisory group;

▌

(j) approve the annual activity report, including the corresponding expenditure;

(k) arrange, as appropriate, for the establishment of an internal audit capability of

the FCH 2 Joint Undertaking;

(l) approve the calls as well as, where appropriate, the related rules for submission,

evaluation, selection, award and review procedures;

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(m) approve the list of actions selected for funding on the basis of the ranking list

produced by a panel of independent experts;

(n) establish the FCH 2 Joint Undertaking's communications policy upon

recommendation by the Executive Director;

(o) where appropriate, establish implementing rules in line with Article 6(3) of this

Regulation;

(p) where appropriate, establish rules on the secondment of national experts to the

FCH 2 Joint Undertaking and on the use of trainees in line with Article 7 of this

Regulation;

(q) where appropriate, set up advisory groups in addition to the bodies to the FCH 2

Joint Undertaking;

(r) where appropriate, submit to the Commission any request to amend this

Regulation proposed by any Member of the FCH 2 Joint Undertaking;

(s) be responsible for any task that is not specifically allocated to one of the bodies

of the FCH 2 Joint Undertaking which it may assign to one of those bodies.

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8 - Appointment, dismissal or extension of the term of office of the Executive Director

1. The Executive Director shall be appointed by the Governing Board, from a list of

candidates proposed by the Commission, following an open and transparent selection

procedure. The Commission shall associate the representation from the other Members

of the FCH 2 Joint Undertaking in the selection procedure as appropriate.

In particular, an appropriate representation from the other Members of the FCH 2 Joint

Undertaking shall be ensured at the pre-selection stage of the selection procedure. For

that purpose, the other Members of the FCH 2 Joint Undertaking shall appoint by

common accord a representative as well as an observer on behalf of the Governing

Board.

2. The Executive Director is a member of staff and shall be engaged as a temporary agent

of the FCH 2 Joint Undertaking under point (a) of Article 2 of the Conditions of

Employment of Other Servants of the Union.

For the purpose of concluding the contract of the Executive Director, the FCH 2 Joint

Undertaking shall be represented by the chairperson of the Governing Board.

3. The term of office of the Executive Director shall be three years. By the end of that

period, the Commission associating the other Members of the FCH 2 Joint

Undertaking as appropriate shall undertake an assessment of the performance of the

Executive Director and the FCH 2 Joint Undertaking's future tasks and challenges.

4. The Governing Board, acting on a proposal from the Commission which takes into

account the assessment referred to in paragraph 3, may extend the term of office of the

Executive Director once, for no more than four years.

5. An Executive Director whose term of office has been extended may not participate in

another selection procedure for the same post at the end of the overall period.

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6. The Executive Director may be dismissed only upon a decision of the Governing

Board acting on a proposal from the Commission associating the other Members of the

FCH 2 Joint Undertaking as appropriate.

9 - Tasks of the Executive Director

1. The Executive Director shall be the chief executive responsible for the day-to-day

management of the FCH 2 Joint Undertaking in accordance with the decisions of the

Governing Board.

2. The Executive Director shall be the legal representative of the FCH 2 Joint

Undertaking. He shall be accountable to the Governing Board.

3. The Executive Director shall implement the budget of the FCH 2 Joint Undertaking.

4. The Executive Director shall in particular carry out the following tasks in an

independent manner:

(a) prepare and submit for adoption to the Governing Board the draft annual budget,

including the corresponding staff establishment plan indicating the number of

temporary posts in each grade and function group and the number of contract

staff and seconded national experts expressed in full-time equivalents;

(b) prepare and submit for adoption to the Governing Board the annual work plan

and the corresponding expenditure estimates;

(c) submit for approval to the Governing Board the annual accounts;

(d) prepare and submit for approval to the Governing Board the annual activity

report, including the corresponding expenditure;

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(e) submit to the Governing Board the report on in-kind contributions in indirect

actions as provided for in Clause 13(3)(b) of the Statues contained in the Annex;

(f) submit for approval to the Governing Board the list of proposals to be selected

for funding;

(fa) inform the States Representatives Group and the Scientific Committee

regularly of all matters relevant to their advisory role;

(g) sign individual grant agreements or decisions;

(h) sign the procurement contracts;

(i) implement the FCH 2 Joint Undertaking's communications policy;

(j) organise, direct and supervise the operations and the staff of the FCH 2 Joint

Undertaking within the constraints of the delegation by the Governing Board as

provided for in Article 6(2) of this Regulation;

(k) establish and ensure the functioning of an effective and efficient internal control

system and report any significant change to it to the Governing Board;

(l) ensure that risk assessment and risk management are performed;

(m) take any other measures needed for assessing the progress of the FCH 2 Joint

Undertaking towards achieving its objectives;

(n) perform any other tasks entrusted or delegated to the Executive Director by the

Governing Board.

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5. The Executive Director shall set up a Programme Office for the execution, under

his/her responsibility, of all support tasks arising from this Regulation. The

Programme Office shall be composed of the staff of the FCH 2 Joint Undertaking and

shall, in particular, carry out the following tasks:

(a) provide support in establishing and managing an appropriate accounting system

in accordance with the Financial rules of the FCH 2 Joint Undertaking;

(b) manage the calls as provided for in the annual work plan, and the administration

of the agreements or decisions, including their coordination;

(c) provide to the Members and the other bodies of the FCH 2 Joint Undertaking all

relevant information and support necessary for them to perform their duties as

well as responding to their specific requests;

(d) act as the secretariat of the bodies of the FCH 2 Joint Undertaking and provide

support to any advisory group set up by the Governing Board.

10 - Scientific Committee

1. The Scientific Committee shall consist of no more than nine members. It shall elect a

chairperson from amongst its members.

2. The members shall reflect a balanced representation of world-wide recognised experts

from academia, industry and regulatory bodies. Collectively, the Scientific Committee

members shall have the necessary scientific competencies and expertise covering the

technical domain needed to make science-based recommendations to the FCH 2 Joint

Undertaking.

3. The Governing Board shall establish the specific criteria and selection process for the

composition of the Scientific Committee and shall appoint its members. The

Governing Board shall take into consideration the potential candidates proposed by the

FCH 2 States Representatives Group.

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4. The Scientific Committee shall carry out the following tasks:

(a) advise on the scientific priorities to be addressed in the annual work plans;

(b) advise on the scientific achievements described in the annual activity report.

5. The Scientific Committee shall meet at least twice a year. The meetings shall be

convened by its chairperson.

6. The Scientific Committee may, with the agreement of the chairperson, invite other

persons to attend its meetings.

7. The Scientific Committee shall adopt its own rules of procedure.

11 - States Representatives Group

1. The FCH 2 States Representatives Group shall consist of one representative of each

Member State and of each country associated to the Horizon 2020 Framework

Programme. It shall elect a chairperson among its members.

2. The States Representatives Group shall meet at least twice a year. The meetings shall

be convened by its chairperson. The Executive Director and the chairperson of the

Governing Board or their representatives shall attend the meetings.

The chairperson of the States Representatives Group may invite other persons to attend

its meetings as observers, in particular representatives of regional authorities of the

Union.

3. The States Representatives Group shall be consulted and, in particular review

information and provide opinions on the following matters:

(a) programme progress in the FCH 2 Joint Undertaking and achievement of its

targets;

(b) updating of strategic orientation;

(c) links to the Horizon 2020 Framework Programme;

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(d) annual work plans;

(e) involvement of SMEs.

4. The States Representatives Group shall also provide information to and act as an

interface with the FCH 2 Joint Undertaking on the following matters:

(a) the status of relevant national or regional research and innovation programmes

and identification of potential areas of cooperation, including deployment of

FCH technologies to allow synergies and avoid overlaps;

(b) specific measures taken at national or regional level with regard to dissemination

events, dedicated technical workshops and communication activities.

5. The States Representatives Group may issue, on its own initiative, recommendations

or proposals to the Governing board on technical, managerial and financial matters as

well as on annual plans, in particular when those matters affect national or regional

interests.

The Governing board shall inform without undue delay the States Representatives

Group of the follow up it has given to such recommendations or proposals, including

the reasoning if they are not followed up.

5a. The States Representatives Group shall receive information on a regular basis,

among others on the participation in indirect actions funded by the FCH 2 Joint

Undertaking, on the outcome of each call and project implementation, on synergies

with other relevant Union programmes, and on the execution of the FCH 2 budget.

6. The FCH 2 States Representatives Group shall adopt its own rules of procedure.

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12 - Stakeholder Forum

1. The Stakeholder Forum shall be open to all public and private stakeholders,

international interest groups from Member States, associated countries as well as from

other countries.

2. The Stakeholder Forum shall be informed of the activities of the FCH 2 Joint

Undertaking and shall be invited to provide comments.

3. The meetings of the Stakeholder Forum shall be convened by the Executive Director.

13 - Sources of financing

1. The FCH 2 Joint Undertaking shall be jointly funded by the Union and the Members

other than the Union or their constituent entities or their affiliated entities through

financial contributions paid in instalments and contributions consisting of the costs

incurred by them in implementing indirect actions that are not reimbursed by the FCH

2 Joint Undertaking.

2. The administrative costs of the FCH 2 Joint Undertaking shall not exceed EUR 38

million and shall be covered through financial contributions divided on an annual basis

between the Union and the Members other than the Union. The Union shall contribute

with 50%, the Industry Grouping with 43% and the Research Grouping with 7%. If

part of the contribution for administrative costs is not used, it may be made available to

cover the operational costs of the FCH 2 Joint Undertaking.

3. The operational costs of the FCH 2 Joint Undertaking shall be covered through:

(a) a financial contribution by the Union

(b) in-kind contributions by the constituent entities of the Members other than the

Union or their affiliated entities participating in the indirect actions, consisting

of the costs incurred by them in implementing indirect actions less the

contribution of the FCH 2 Joint Undertaking and any other Union contribution to

those costs.

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4. The resources of the FCH 2 Joint Undertaking entered to its budget shall be composed

of the following contributions:

(a) Members' financial contributions to the administrative costs;

(b) Union financial contribution to the operational costs;

(c) any revenue generated by the FCH 2 Joint Undertaking;

(d) any other financial contributions, resources and revenues.

Any interest yielded by the contributions paid to the FCH 2 Joint Undertaking by its

Members shall be considered to be its revenue.

5. All resources of the FCH 2 Joint Undertaking and its activities shall be devoted to the

objectives set out in Article 2 of this Regulation.

6. The FCH 2 Joint Undertaking shall own all assets generated by it or transferred to it

for the fulfilment of its objectives set out in Article 2 of this Regulation.

7. Except when the FCH 2 Joint Undertaking is wound up pursuant to clause 21, any

excess revenue over expenditure shall not be paid to the Members of the FCH 2 Joint

Undertaking.

14 - Financial commitments

Financial commitments of the FCH 2 Joint Undertaking shall not exceed the amount of

financial resources available or committed to its budget by its Members.

15 - Financial year

The financial year shall run from 1 January to 31 December.

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16 - Operational and financial planning

1. The Executive Director shall submit for adoption to the Governing Board a draft

annual work plan, which shall include a detailed plan of the research and innovation

activities, the administrative activities and the corresponding expenditure estimates for

the coming year. The draft work plan shall also include the estimated value of the

contributions to be made in accordance with clause 13(3)(b).

2. The annual work plan for a particular year shall be adopted by the end of the previous

year. The annual work plan shall be made publicly available.

3. The Executive Director shall prepare the draft annual budget for the following year and

submit it to the Governing Board for adoption.

4. The annual budget for a particular year shall be adopted by the Governing Board by

the end of the previous year.

5. The annual budget shall be adapted in order to take into account the amount of the

Union contribution as set out in the Union budget.

17 - Operational and financial reporting

1. The Executive Director shall report annually to the Governing Board on the

performance of his/her duties in accordance with the financial rules of the FCH 2 Joint

Undertaking.

Within two months of the closure of each financial year, the Executive Director shall

submit to the Governing Board for approval an annual activity report on the progress

made by the FCH 2 Joint Undertaking in the previous calendar year, in particular in

relation to the annual work plan for that year. That report shall include, inter alia,

information on the following matters:

(a) research, innovation and other actions carried out and the corresponding

expenditure;

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(b) the actions submitted, including a breakdown by participant type, including

SMEs, and by country;

(c) the actions selected for funding, including a breakdown by participant type,

including SMEs, and by country and indicating the contribution of the FCH 2

Joint Undertaking to the individual participants and actions.

2. Once approved by the Governing Board, the annual activity report shall be made

publicly available.

3. By 1 March of the following financial year, the accounting officer of the FCH 2

Joint Undertaking shall send the provisional accounts to the Commission's

accounting officer and the Court of Auditors.

By 31 March of the following financial year, the FCH 2 Joint Undertaking shall

send the report on the budgetary and financial management to the European

Parliament, the Council and the Court of Auditors.

On receipt of the Court of Auditors' observations on the FCH 2 Joint Undertaking's

provisional accounts pursuant to Article 148 of Regulation (EU, Euratom) No

966/2012, the accounting officer shall draw up the FCH 2 Joint Undertaking's final

accounts and the Executive Director shall submit them to the Governing Board for

an opinion.

The Governing Board shall deliver an opinion on the FCH 2 Joint Undertaking's

final accounts.

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The Executive Director shall, by 1 July following each financial year, send the final

accounts to the European Parliament, the Council, the Commission and the Court of

Auditors, together with the Governing Board's opinion.

The final accounts shall be published in the Official Journal of the European Union

by 15 November of the following year.

The Executive Director shall send the Court of Auditors a reply to its observations

made in its annual report by 30 September. The Executive Director shall also send

this reply to the Governing Board.

The Executive Director shall submit to the European Parliament, at the latter's

request, any information required for the smooth application of the discharge

procedure for the financial year in question, in accordance with Article 165(3) of

Regulation (EU, Euratom) No 966/2012.

18 - Internal audit

The Commission's internal auditor shall exercise the same powers over the FCH 2 Joint

Undertaking as those exercised in respect of the Commission.

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19 - Liability of Members and insurance

1. The financial liability of the Members for the debts of the FCH 2 Joint Undertaking

shall be limited to their contribution already made for the administrative costs.

2. The FCH 2 Joint Undertaking shall take out and maintain appropriate insurance.

20 - Conflict of interest

1. The FCH 2 Joint Undertaking, its bodies and staff shall avoid any conflict of interest in

the implementation of their activities.

2. The FCH 2 Joint Undertaking Governing Board shall adopt rules for the prevention

and management of conflicts of interest in respect of its Members, bodies and staff. In

those rules, provision shall be made to avoid a conflict of interest for the

representatives of the Members serving in the Governing Board.

21 - Winding up

1. The FCH 2 Joint Undertaking shall be wound up at the end of the period defined in

Article 1 of this Regulation.

2. The winding up procedure shall be automatically triggered if the Commission or all

Members other than the Union withdraw from the FCH 2 Joint Undertaking.

3. For the purpose of conducting the proceedings to wind up the FCH 2 Joint

Undertaking, the Governing Board shall appoint one or more liquidators, who shall

comply with the decisions of the Governing Board.

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4. When the FCH 2 Joint Undertaking is being wound up, its assets shall be used to cover

its liabilities and the expenditure relating to its winding up. Any surplus shall be

distributed among the Members at the time of the winding up in proportion to their

financial contribution to the FCH 2 Joint Undertaking. Any such surplus distributed to

the Union shall be returned to the Union budget.

5. An ad hoc procedure shall be set up to ensure the appropriate management of any

agreement concluded or decision adopted by the FCH 2 Joint Undertaking as well as

any procurement contract with duration longer than its duration.

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P7_TA-PROV(2014)0376

Interinstitutional agreement on the transparency register

European Parliament decision of 15 April 2014 on the modification of the interinstitutional agreement on the Transparency Register (2014/2010(ACI))

The European Parliament,

– having regard to the meeting of its Bureau of 13 January 2014, at which the latter approved the recommendations adopted on 12 December 2013 by the High-level Interinstitutional Working Group for the revision of the Transparency Register,

– having regard to the draft interinstitutional agreement between the European Parliament and the European Commission on the Transparency Register for organisations and self-employed individuals engaged in EU policy-making and policy implementation (hereinafter referred to as "the modified agreement"),

– having regard to Article 11(1) and (2) of the Treaty on European Union (TEU),

– having regard to Article 295 of the Treaty on the Functioning of the European Union (TFEU),

– having regard to its decision of 11 May 2011 on conclusion of an interinstitutional agreement between the European Parliament and the Commission on a common Transparency Register1,

– having regard to the interinstitutional agreement of 23 June 2011 between the European Parliament and the European Commission on the establishment of a transparency register for organisations and self-employed individuals engaged in EU policy-making and policy implementation (hereinafter referred to as "the Agreement of 23 June 2011")2,

– having regard to Rule 127(1) of its Rules of Procedure,

– having regard to the report of the Committee on Constitutional Affairs (A7-0258/2014),

A. whereas Article 11(2) TEU states: "The institutions shall maintain an open, transparent and regular dialogue with representative associations and civil society";

B. whereas the transparency of that dialogue requires the good functioning of a common register of the organisations and persons trying to influence EU policy-making and policy implementation processes;

1 OJ C 377 E, 7.12.2012, p. 176.2 OJ L 191, 22.7.2011, p. 29.

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C. whereas its resolution of 8 May 2008 on the development of the framework for the activities of interest representatives (lobbyists) in the European institutions3 laid down the principles on the basis of which the European Parliament entered into negotiations with the Commission concerning a common transparency register;

D. whereas its abovementioned decision of 11 May 2011 endorsed the rules and the framework of the Transparency Register for organisations and self-employed individuals engaged in EU policy-making and policy implementation;

E. Whereas unregulated and non-transparent lobbying poses a significant threat to policy-making and to the public interest;

1. Regrets that the proposal for a modification of the Agreement of 23 June 2011 will not lead to the establishment of a mandatory transparency register; reiterates therefore its call for mandatory registration in relation to the conduct of lobbying activities at the EU institutions, as already stated in its abovementioned resolution of 8 May 2008 and its abovementioned decision of 11 May 2011;

2. Considers the proposed modification of the Agreement of 23 June 2011 to be a partial step forward at the present stage;

3. Calls on the Commission to submit, by the end of 2016, a legislative proposal for the establishment of a mandatory register on the basis of Article 352 TFEU;

4. Asks the Commission to include, in the context of any forthcoming proposals for a comprehensive reform of the Treaties, a proposal either for an amendment of Article 298 TFEU or for an appropriate specific legal basis allowing a mandatory register to be set up in accordance with the ordinary legislative procedure;

5. Considers that future reviews of the Transparency Register should be as transparent and inclusive as possible and should fully involve its competent committee and allow for strong civil society participation;

6. Insists that the next review of the Transparency Register is accompanied by a public consultation;

7. Considers that in any event, a further evaluation of the Transparency Register should be completed before the end of 2017 at the latest;

8. Recognises the role played by the Council since the establishment of the Transparency Register, and welcomes the fact that the Council has become involved, as an observer, in the process of keeping the Agreement of 23 June 2011 under review; however, in order to ensure transparency at all stages in the law-making process at Union level, reiterates its call to the Council to join the Transparency Register as soon as possible;

9. Welcomes the improved specification of the information to be provided pursuant to the modified agreement, which should be implemented by insisting on disclosure of the identity of all clients represented by organisations and self-employed individuals engaged in EU

3 OJ C 271 E, 12.11.2009, p. 48.

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policy-making and policy implementation processes, and by clearly linking all activities covered by the Register to the clients concerned;

10. Considers that, when interpreting “inappropriate behaviour” within the meaning of point (b) of the Code of Conduct annexed to the modified agreement, in addition to the generally accepted principles as outlined in the Code, in particular in its points (c), (f) or (g), this expression includes:

– interference in the private sphere or personal life of decision-makers, e.g. by sending gifts to a decision-maker’s home address or approaching decision-makers at their home address or via their relatives or friends;

– performance, or any active promotion, of activities in the field of communication with the EU institutions and their Members or staff which are liable to impair the functionality of the EU institutions’ communication systems, particularly in cases where such activities are performed anonymously;

– failing to declare the interests or clients being represented when contacting a Member of the European Parliament or officials or other staff of the European Parliament with regard to the legislative process;

– employing ‘front groups’, i.e. organisations which hide the interests and parties they serve, the latter not being registered in the Transparency Register; and employing the representatives of third countries when engaged in direct and indirect lobbying activities;

– offer or grant support, whether financial or in terms of staff or material to Members of the European Parliament or their assistants;

11. Believes that the Code of Conduct attached to the Agreement of 23 June 2011 and the Code of Conduct for Members of the European Parliament with respect to financial interests and conflicts of interest should be amended in order to ensure that Members do not enter into any kind of agreement or contractual relationship with an external body to either fund or directly employ individuals within a Member’s staff;

12. Welcomes the clearer definitions describing exceptions to the scope of coverage of activities of law firms;

13. Expects that such clearer definitions will help to encourage further registrations and bring about a better understanding of the meaning of covered activities of law firms, in order that they may benefit from the incentives offered by the Transparency Register and participate in a transparent manner in the decision-making process;

14. Insists that registered law firms should declare in the Transparency Register all the clients on whose behalf they perform covered activities;

15. Encourages the Commission to be equally ambitious, when it comes to introducing incentive measures for registrants in order to enhance participation in the Transparency Register; considers that such incentives could include:

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(a) granting patronage only to registered organisations, for any events organised by an organisation falling within the scope of the Transparency Register,

(b) reducing the number of meetings with non-registered organisations or interest representatives,

(c) considering limitations on the participation of non-registered organisations in Commission advisory bodies and expert groups,

(d) encouraging Commissioners and Commission officials and other staff to refuse invitations to events organised by non-registered organisations,

(e) restricting to registered organisations the possibility of hosting or co-hosting events on Commission premises;

16. Welcomes the recent decisions taken by the Brussels and Paris Bars recognising the differences between court-related activities of lawyers and other activities falling within the scope of the Transparency Register; moreover, invites the Council of Bars and Law Societies of Europe to encourage its members to adopt similar measures;

17. Notes that, in some Member States, statutory provisions exist on the rules governing the exercise of professions, which in particular objectively prevent lawyers’ firms from having themselves entered in the Transparency Register and in the process revealing the information about their clients which the Register requires; also, however, perceives a substantial risk in that such statutory provisions can also be abused to avoid publishing information required for a correct entry in the Register; welcomes, in this connection, the perceptible readiness of professional organisations to work in partnership to ensure that, in the interests of their profession, such withholding of information is confined exclusively to what the legislation objectively permits; calls on the Commission and the President of the European Parliament to secure a practical outcome from this readiness and to enshrine a result in the modified agreement as soon as possible ;

18. Welcomes the intention of its Bureau to introduce a significant number of incentive measures in order to enhance participation in the Transparency Register;

19. With a view to full implementation of those measures, invites its Bureau to consider the following concrete proposals for inclusion in the relevant Bureau decisions:

(a) encourage European Parliament officials or other staff, when approached by a representative of an organisation or individuals undertaking an activity falling within the scope of the Transparency Register, to check whether the organisation in question is registered, and, if it is not, to encourage it to register before meeting its representative;

(b) restrict access to European Parliament premises for non-registered organisations or individuals;

(c) allow events to be co-organised and/or co-hosted with organisations or individuals falling within the scope of the Transparency Register only if those organisations or individuals are registered;

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(d) allow representatives of organisations or individuals falling within the scope of the Transparency Register to participate as speakers on the panel at committee hearings only if they are registered;

(e) withhold European Parliament's patronage of any event organised by an organisation falling within the scope of the Transparency Register to cases where such an organisation is registered;

(f) increase its vigilance against granting Parliamentary privileges to front organisations of third countries which do not respect European Union values;

20. Requests the Bureau to develop a standardised form for rapporteurs to publish on a voluntary basis a 'legislative footprint', which is a form annexed to reports drafted by Members detailing all the lobbyists with whom rapporteurs in charge of a particular file have met in the process of drawing up the report, where this has led to a substantial impact on the report.

21. Asks former Members of the European Parliament to comply with the relevant provisions1 when carrying on activities falling within the scope of the Transparency Register; believes that in carrying on such activities, former Members should not use their Members' badge to access the premises of the European Parliament; requests the Bureau to present to the Conference of Presidents a proposal for appropriate measures to prevent misuse of privileges to which former Members are entitled;

22. Requests the Joint Transparency Register Secretariat to provide, at regular intervals, a report on the functioning of the incentives system, with a view, ultimately, to the establishment of a mandatory register;

23. Underlines that non-registered organisations or individuals, which are eligible for registration and expected to register, even if their non-registration is only temporary, will not have access to the new incentives and advantages linked to registration;

24. Welcomes and encourages the role played by non-institutional watchdogs in monitoring the transparency of the EU Institutions;

25. Considers that the structure and the staff of the Joint Transparency Register Secretariat need to be reinforced in order to implement the new provisions in the modified agreement, to deal with the procedures for alerts and for the investigation and treatment of complaints, and to improve the procedures for verifying the reliability of information provided by registrants;

26. Expects that the annual report on the operation of the Joint Transparency Register will include an analysis of the progress made in terms of coverage and quality of entries;

1 As laid down by the Quaestors at their ordinary meeting held on 19 April 2012, PV QUAEST.

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27. Encourages the Commission, in performing its function of coordinating the Transparency Register, to closely monitor the proper implementation of the modified agreement;

28. Approves the modified agreement as set out below and decides to annex it to its Rules of Procedure;

29. Instructs its President to sign the modified agreement together with the President of the European Commission and to arrange for its publication in the Official Journal of the European Union;

30. Instructs its President to forward this decision, including its annex, to the Council, the Commission and the parliaments of the Member States.

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ANNEX

AGREEMENT BETWEEN THE EUROPEAN PARLIAMENT AND THE EUROPEAN COMMISSION ON THE TRANSPARENCY REGISTER FOR ORGANISATIONS AND

SELF-EMPLOYED INDIVIDUALS ENGAGED IN EU POLICY-MAKING AND POLICY IMPLEMENTATION

The European Parliament and the European Commission ("the parties hereto"),

Having regard to the Treaty on European Union, in particular Article 11(1) and (2) thereof, the Treaty on the Functioning of the European Union, in particular Article 295 thereof, and the Treaty establishing the European Atomic Energy Community (hereinafter together referred to as "the Treaties"),

Whereas European policy-makers do not operate in isolation from civil society, but maintain an open, transparent and regular dialogue with representative associations and civil society;

Whereas the parties hereto have reviewed the Transparency Register (hereinafter "the register") established by the agreement between the European Parliament and the European Commission of 23 June 2011 on the establishment of a transparency register for organisations and self-employed individuals engaged in EU policy-making and policy implementation1 pursuant to paragraph 30 of that agreement,

AGREE AS FOLLOWS:

I. Principles of the register

1. The establishment and operation of the register shall not affect or prejudice the objectives of the European Parliament as expressed in its resolution of 8 May 2008 on the development of the framework for the activities of interest representatives (lobbyists) in the European institutions2 and in its decision of 11 May 2011 on conclusion of an interinstitutional agreement between the European Parliament and the Commission on a common Transparency Register3.

2. The operation of the register shall respect the general principles of Union law, including the principles of proportionality and non-discrimination.

3. The operation of the register shall respect the rights of Members of the European Parliament to exercise their parliamentary mandate without restriction.

4. The operation of the register shall not impinge on the competences or prerogatives of the parties hereto or affect their respective organisational powers.

5. The parties hereto shall strive to treat all operators engaged in similar activities in a similar manner, and to allow for a level playing-field for the registration of organisations and self-employed individuals engaged in EU policy-making and policy implementation.

1 OJ L 191, 22.7.2011, p. 29.2 OJ C 271 E, 12.11.2009, p. 48.3 OJ C 377 E, 7.12.2012, p. 176.

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II. Structure of the register

6. The structure of the register shall be as follows:

(a) provisions on the scope of the register, activities covered by the register, definitions, incentives and exemptions;

(b) sections for registration (Annex 1);

(c) information required from registrants, including financial disclosure requirements (Annex 2);

(d) code of conduct (Annex 3);

(e) alert and complaint mechanisms and measures to be applied in the event of non-compliance with the code of conduct, including the procedures for alerts and for the investigation and treatment of complaints (Annex 4);

(f) implementation guidelines with practical information for registrants.

III. Scope of the register

Activities covered

7. The scope of the register covers all activities, other than those referred to in paragraphs 10 to 12, carried out with the objective of directly or indirectly influencing the formulation or implementation of policy and the decision-making processes of the EU institutions, irrespective of where they are undertaken and of the channel or medium of communication used, for example via outsourcing, media, contracts with professional intermediaries, think tanks, platforms, forums, campaigns and grassroots initiatives.

For the purpose of this agreement, "directly influencing" means influencing by way of a direct contact or communication with the EU institutions or other action following up on such activities and "indirectly influencing" means influencing through the use of intermediate vectors such as media, public opinion, conferences or social events, targeting the EU institutions .

In particular, those activities include:

– contacting Members and their assistants, officials or other staff of the EU institutions;

– preparing, circulating and communicating letters, information material or discussion papers and position papers;

– organising events, meetings, promotional activities, conferences or social events, invitations to which have been sent to Members and their assistants, officials or other staff of the EU institutions; and

– voluntary contributions and participation in formal consultations or hearings on envisaged EU legislative or other legal acts and other open consultations.

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8. All organisations and self-employed individuals, irrespective of their legal status, engaged in activities, whether on-going or under preparation, covered by the register are expected to register.

Any activity covered by the register and which is developed under contract by an intermediary providing legal and other professional advice, shall entail eligibility for registration both for the intermediary and for its client. Such intermediaries shall declare all clients under such contracts as well as the revenue per client for representation activities as set out in Annex 2 at point II.C.2.B. This requirement does not exempt clients from registering and including in their own cost estimates the cost of any activities subcontracted to an intermediary.

Activities not covered

9. An organisation shall only be eligible to register if it carries out activities, covered by the register, which have resulted in direct or indirect communication with EU institutions. An organisation deemed non-eligible may be removed from the register.

10. Activities concerning the provision of legal and other professional advice are not covered by the register in so far as:

– they consist of advisory work and contacts with public bodies in order to better inform clients about a general legal situation or about their specific legal position, or to advise them whether a particular legal or administrative step is appropriate or admissible under the existing legal and regulatory environment;

– they consist of advice given to clients to help them ensure that their activities comply with the relevant law;

– they consist of analyses and studies prepared for clients on the potential impact of any legislative or regulatory changes with regard to their legal position or field of activity;

– they consist of representation in the context of a conciliation or mediation procedure aimed at preventing a dispute from being brought before a judicial or administrative body; or

– they relate to the exercise of the fundamental right of a client to a fair trial, including the right of defence in administrative proceedings, such as activities carried out by lawyers or by any other professionals involved therein.

If a company and its advisers are involved as a party in a specific legal or administrative case or procedure, any activity relating directly thereto which does not seek as such to change the existing legal framework is not covered by the register. This subparagraph applies to all business sectors in the European Union.

However, the following activities concerning the provision of legal and other professional advice are covered by the register where they are intended to influence the EU institutions, their Members and their assistants or their officials or other staff:

– the provision of support, via representation or mediation, or of advocacy material, including argumentation and drafting;  and

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– the provision of tactical or strategic advice, including the raising of issues the scope of which and the timing of communication of which are intended to influence the EU institutions, their Members and their assistants or their officials or other staff.

11. Activities of the social partners as participants in the social dialogue (trade unions, employers' associations, etc.) are not covered by the register where those social partners perform the role assigned to them in the Treaties. This paragraph applies mutatis mutandis to any entity specifically designated in the Treaties to play an institutional role;

12. Activities in response to direct and individual requests from EU institutions or Members of the European Parliament, such as ad hoc or regular requests for factual information, data or expertise, are not covered by the register.

Specific provisions

13. The register does not apply to churches and religious communities. However, the representative offices or legal entities, offices and networks created to represent churches and religious communities in their dealings with the EU institutions, as well as their associations, are expected to register.

14. The register does not apply to political parties. However, any organisations created or supported by them which are engaged in activities covered by the register are expected to register.

15. The register does not apply to Member States' government services, third countries' governments, international intergovernmental organisations and their diplomatic missions.

16. Regional public authorities and their representative offices are not expected to register, but can register if they wish to do so. Any association or network created to represent regions collectively is expected to register.

17. All sub-national public authorities other than those referred to in paragraph 16, such as local and municipal authorities or cities, or their representation offices, associations or networks, are expected to register.

18. Networks, platforms or other forms of collective activity, which have no legal status or legal personality but which constitute de facto a source of organised influence and which are engaged in activities covered by the register, are expected to register. Members of such forms of collective activity shall designate a representative to act as their contact person responsible for liaising with the "Joint Transparency Register Secretariat" (JTRS).

19. The activities to be taken into account for assessing eligibility to register are those aimed (directly or indirectly) at all EU institutions, agencies and bodies, and their Members and their assistants, officials and other staff. Such activities do not include activities directed at Member States, in particular those directed at their permanent representations to the European Union.

20. European networks, federations, associations or platforms are encouraged to produce common, transparent guidelines for their members identifying the activities covered by the register. They are expected to make those guidelines public.

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IV. Rules applicable to registrants

21. By registering, the organisations and individuals concerned:

agree that the information which they provide for inclusion in the register shall be in the public domain;

agree to act in compliance with the code of conduct set out in Annex 3 and, where relevant, to provide the text of any professional code of conduct by which they are bound1;

guarantee that the information provided for inclusion in the register is correct and agree to co-operate with administrative requests for complementary information and updates;

accept that any alert or complaint concerning them will be handled on the basis of the rules in the code of conduct set out in Annex 3;

agree to be subject to any measures to be applied in the event of non-compliance with the code of conduct set out in Annex 3 and acknowledge that the measures provided for in Annex 4 may be applied to them in the event of non-compliance with the code;

note that the parties hereto may, upon request and subject to the provisions of Regulation (EC) No 1049/2001 of the European Parliament and of the Council2, have to disclose correspondence and other documents concerning the activities of registrants.

V. Implementation

22. The Secretaries-General of the European Parliament and the European Commission shall be responsible for supervision of the system and for all key operational aspects, and shall by common accord take the measures necessary to implement this agreement.

23. Although the system is operated jointly, the parties hereto remain free to use the register independently for their own specific purposes.

24. In order to implement the system, the services of the European Parliament and the European Commission maintain a joint operational structure, designated as the JTRS. The JTRS is made up of a group of officials from the European Parliament and the European Commission pursuant to an arrangement agreed by the competent services. The JTRS operates under the coordination of a Head of Unit in the Secretariat-General of the European Commission. The tasks of the JTRS include producing implementation guidelines, within the limits of this agreement, to facilitate a consistent interpretation of the rules by registrants, and monitoring the quality of the content of the register. The JTRS shall use the administrative resources available to perform quality checks of the content of the register, on the

1 The professional code of conduct by which a registrant is bound may impose obligations which are more stringent than the requirements of the code of conduct set out in Annex 3.

2 Regulation (EC) No 1049/2001 of the European Parliament and of the Council of 30 May 2001 regarding public access to European Parliament, Council and Commission documents (OJ L 145, 31.5.2001, p. 43).

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understanding, however, that registrants are ultimately responsible for the information they have provided.

25. The parties hereto shall organise appropriate training and internal communication projects to raise awareness of the register and of the alert and complaints procedures among their Members and staff.

26. The parties hereto shall take appropriate measures externally to raise awareness of the register and promote its use.

27. A series of basic statistics, extracted from the database of the register, shall be published regularly on the Europa Transparency Register website and shall be accessible via a user-friendly search engine. The public content of that database shall be available in electronic, machine-readable formats.

28. An annual report on the operation of the register shall be submitted by the Secretaries-General of the European Parliament and the European Commission respectively to the relevant Vice-President of the European Parliament and to the relevant Vice-President of the European Commission. The annual report shall provide factual information about the register, its content and its evolution, and shall be published each year for the preceding calendar year.

VI. Measures applicable for compliant registrants

29. Access passes to the European Parliament's premises will only be issued to individuals representing, or working for, organisations falling within the scope of the register where those organisations or individuals have registered. However, registration shall not confer an automatic entitlement to such an access pass. The issue and control of passes affording long-term access to the European Parliament's premises shall remain an internal procedure of the Parliament under its own responsibility.

30. The parties hereto shall offer incentives, in the framework of their administrative authority, in order to encourage registration within the framework created by this agreement.

Incentives offered by the European Parliament to registrants may include:

further facilitation of access to its premises, its Members and their assistants, its officials and other staff;

authorisation to organise or co-host events on its premises;

facilitated transmission of information, including specific mailing lists;

participation as speakers in committee hearings;

patronage by the European Parliament.

Incentives offered by the European Commission to registrants may include:

measures with regard to the transmission of information to registrants when launching public consultations;

measures with regard to expert groups and other advisory bodies;

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specific mailing lists;

patronage by the European Commission.

Specific incentives available to registrants shall be communicated to them by the parties hereto.

VII. Measures in the event of non-compliance with the code of conduct

31. Any person may lodge alerts and complaints, using the standard contact form, available on the website of the register, concerning possible non-compliance with the code of conduct set out in Annex 3. Alerts and complaints shall be handled in accordance with the procedures laid down in Annex 4.

32. An alert mechanism is a tool to complement the quality checks performed by the JTRS in accordance with paragraph 24. Any person may lodge an alert with regard to factual mistakes concerning the information provided by the registrants. Alerts may also be lodged with regard to non-eligible registrations.

33. Any person may lodge a formal complaint where non-compliance by a registrant with the code of conduct, other than factual mistakes, is suspected. Complaints shall be substantiated by material facts with regard to the suspected non-compliance with the code.

The JTRS shall investigate the suspected non-compliance with due regard for the principles of proportionality and good administration. Intentional non-compliance with the code of conduct by registrants or by their representatives shall lead to the application of the measures laid down in Annex 4.

34. Where repeated non-co-operation, repeated inappropriate behaviour, or serious non-compliance with the code of conduct, has been identified by the JTRS under the procedures referred to in paragraphs 31 to 33, the registrant concerned shall be removed from the register for a time period of either one year or two years and the measure will be publicly mentioned in the register, as laid down in Annex 4.

VIII. Involvement of other institutions and bodies

35. The European Council and the Council are invited to join the register. Other EU institutions, bodies and agencies are encouraged to use the framework created by this agreement themselves as a reference instrument for their own interaction with organisations and self-employed individuals engaged in EU policy-making and policy implementation.

IX. Final provisions

36. This agreement shall replace the agreement between the European Parliament and the European Commission of 23 June 2011 whose effects shall cease to apply on the date of application of this agreement.

37. The register shall be subject to a review in 2017.

38. This agreement shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union. It shall apply from ....* or from 1

* OJ: please insert the date: 3 months after the date of entry into force of this agreement.

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January 2015 whichever date is the earliest.

Entities already registered at the date of application of this agreement shall amend their registration to satisfy the new requirements resulting from this agreement within a period of three months following that date.

Done at ...,

For the European Parliament For the European CommissionThe President The President

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Annex 1

"Transparency Register"

Organisations and self-employed individuals engaged in EU policy-making and policy implementation

Sections Characteristics/remarks

I - Professional consultancies/law firms/self-employed consultants

Subsection Professional consultancies Firms carrying on, on behalf of clients, activities involving advocacy, lobbying, promotion, public affairs and relations with public authorities.

Subsection Law firms Law firms carrying on, on behalf of clients, activities involving advocacy, lobbying, promotion, public affairs and relations with public authorities.

Subsection Self-employed consultants Self-employed consultants or lawyers carrying on, on behalf of clients, activities involving advocacy, lobbying, promotion, public affairs and relations with public authorities. This subsection is for registration of entities involving only one person.

II - In-house lobbyists and trade/business/professional associations

Subsection Companies and groups Companies or groups of companies (with or without legal status) carrying on in-house, for their own account, activities involving advocacy, lobbying, promotion, public affairs and relations with public authorities.

Subsection Trade and business associations Organisations (either profit or non-profit making themselves) representing profit-making companies or mixed groups and platforms.

Subsection Trade unions and professional associations Interest representation of workers, employees, trades or professions.

Subsection Other organisations including:

- event-organising entities (profit or non-profit making);

- interest-related media or research oriented entities linked to private profit making interests;

- ad-hoc coalitions and temporary structures (with profit-making membership).

III - Non-governmental organisations

Subsection Non-governmental organisations, platforms, networks, ad-hoc coalitions, temporary structures and other similar organisations.

Not-for-profit organisations (with or without legal status), which are independent from public authorities or commercial organisations. Includes foundations, charities, etc.Any such entity including profit-making elements among its membership must register in Section II.

IV - Think tanks, research and academic institutions

Subsection Think tanks and research institutions Specialised think tanks and research institutions dealing with the activities and policies of the European Union.

Subsection Academic institutions Institutions whose primary purpose is education but that deal with the activities and policies of the European Union.

V - Organisations representing churches and religious communities

Subsection Organisations representing churches and religious communities

Legal entities, offices, networks or associations set up for representation activities.

VI - Organisations representing local, regional and municipal authorities, other public or mixed entities, etc.

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Subsection Regional structures Regions themselves and their representative offices are not expected to register but can register if they wish to do so. Associations or networks created to represent regions collectively are expected to register.

Subsection Other sub-national public authorities All other sub-national public authorities, such as cities, local and municipal authorities, or their representation offices, and national associations or networks, are expected to register.

Subsection Transnational associations and networks of public regional or other sub-national authorities

Subsection Other public or mixed entities, created by law whose purpose is to act in the public interest

Includes other organisations with public or mixed (public/private) status.

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Annex 2

Information to be provided by registrants

I. GENERAL AND BASIC INFORMATION

a) organisation name(s), address of head office and Brussels, Luxembourg or Strasbourg address where relevant, phone number, e-mail address, website;

b) names of the person legally responsible for the organisation and of the organisation's director or managing partner or, if applicable, principal contact point in respect of activities covered by the register (i.e. head of EU affairs); names of the persons with authorisation for access to the European Parliament's premises1;

c) number of persons (members, staff, etc) involved in activities covered by the register and of persons benefiting from an access pass to the European Parliament's premises and the amount of time spent by each person on such activities according to the following percentages of a full-time activity: 25%, 50%, 75% or 100 %;

d) goals/remit – fields of interest – activities – countries in which operations are carried out – affiliations to networks – general information falling within the scope of the register;

e) membership and, if applicable, number of members (individuals and organisations).

II. SPECIFIC INFORMATION

A. ACTIVITIES COVERED BY THE REGISTER

Specific details shall be provided on the main legislative proposals or policies targeted by activities of the registrant, and which are covered by the register. Reference to other specific activities, such as events or publications, may be made.

B. LINKS WITH EU INSTITUTIONS

a) Membership of high-level groups, consultative committees, expert groups, other EU supported structures and platforms, etc.

b) Membership of, or participation in, European Parliament intergroups or industry forums, etc.

C. FINANCIAL INFORMATION RELATED TO THE ACTIVITIES COVERED BY THE REGISTER

1. All registrants shall provide:

a) An estimate of the annual costs related to activities covered by the register. Financial figures shall cover a full year of operations and refer to the most recent

1 Registrants can request authorisation for access to the European Parliament's premises at the end of the registration process. The names of individuals who receive access passes to the European Parliament's premises shall be inserted in the register. Registration shall not confer an automatic entitlement to such an access pass.

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financial year closed, as of the date of registration or of the annual update of the registration details.

b) The amount and source of funding, received from EU institutions in the most recent financial year closed, as of the date of registration or of the annual update of the registration details. That information shall correspond to the information provided by the European Financial Transparency System1.

2. Professional consultancies/law firms/self-employed consultants (Section I of Annex 1) shall additionally provide:

a) The turnover attributable to the activities covered by the register according to the following grid:

Annual turnover for representation activities in euros

0 – 99 999

100 000– 499 999

500 000 – 1 000 000

> 1 000 000

b) A list of all clients, on behalf of whom activities covered by the register are carried out. Revenue from clients for representation activities shall be listed according to the following grid:

Bracket size of representation activities per client per annum in euros 0 – 9 999

10 000 – 24 999

25 000 – 49 999

50 000 – 99 999

100 000 – 199 999

200 000 – 299 999

300 000 – 399 999

400 000 – 499 999

500 000 – 599 999

600 000 – 699 999

700 000 – 799 999

800 000 – 899 999

900 000 – 1 000 000

> 1 000 000

1 http://ec.europa.eu/budget/fts/index_en.htm

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c) Clients are also expected to register. The financial declaration made by professional consultancies/law firms/self-employed consultants concerning their clients (list and grid) does not exempt those clients from their obligation to include subcontracted activities in their own declarations, so as to avoid an underestimation of their declared financial outlay.

3. In-house lobbyists and trade/business/professional associations (Section II of Annex I) shall additionally provide:

the turnover attributable to the activities covered by the register, including for amounts less than EUR 10 000.

4. Non-governmental organisations – Think tanks, research and academic institutions – organisations representing churches and religious communities – organisations representing local, regional and municipal authorities, other public or mixed entities, etc. (Sections III to VI of Annex 1) shall additionally provide:

a) the total budget of the organisation

b) a breakdown of the main amounts and sources of funding.

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Annex 3

Code of conduct

The parties hereto consider that all interest representatives interacting with them, whether on a single occasion or more frequently, registered or not, should behave in conformity with this code of conduct.

In their relations with EU institutions and their Members, officials and other staff, interest representatives shall:

(a) always identify themselves by name and, by registration number, if applicable, and by the entity or entities they work for or represent; declare the interests, objectives or aims they promote and, where applicable, specify the clients or members whom they represent;

(b) not obtain or try to obtain information or decisions dishonestly or by use of undue pressure or inappropriate behaviour;

(c) not claim any formal relationship with the European Union or any of its institutions in their dealings with third parties, or misrepresent the effect of registration in such a way as to mislead third parties or officials or other staff of the European Union, or use the logos of EU institutions without express authorisation;

(d) ensure that, to the best of their knowledge, information, which they provide upon registration, and subsequently in the framework of their activities covered by the register, is complete, up-to-date and not misleading; accept that all information provided is subject to review and agree to co-operate with administrative requests for complementary information and updates;

(e) not sell to third parties copies of documents obtained from EU institutions;

(f) in general, respect, and avoid any obstruction to the implementation and application of, all rules, codes and good governance practices established by EU institutions;

(g) not induce Members of the institutions of the European Union, officials or other staff of the European Union, or assistants or trainees of those Members, to contravene the rules and standards of behaviour applicable to them;

(h) if employing former officials or other staff of the European Union, or assistants or trainees of Members of EU institutions, respect the obligation of such employees to abide by the rules and confidentiality requirements which apply to them;

(i) obtain the prior consent of the Member or Members of the European Parliament concerned as regards any contractual relationship with, or employment of, any individual within a Member's designated entourage;

(j) observe any rules laid down on the rights and responsibilities of former Members of the European Parliament and the European Commission;

(k) inform whomever they represent of their obligations towards the EU institutions.

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Individuals who have registered with the European Parliament with a view to being issued with a personal, non-transferable pass affording access to the European Parliament’s premises shall:

(l) ensure that they wear the access pass visibly at all times in European Parliament premises;

(m) comply strictly with the relevant European Parliament Rules of Procedure;

(n) accept that any decision on a request for access to the European Parliament's premises is the sole prerogative of the Parliament and that registration shall not confer an automatic entitlement to an access pass.

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Annex 4

Procedures for alerts and for the investigation and treatment of complaints

I. ALERTS

Any person may lodge an alert to the JTRS by completing the standard contact form, available on the website of the register, with regard to information contained in the register and non-eligible registrations.

Where alerts are made about information contained in the register, they will be treated as allegations of non-compliance with point (d) of the code of conduct set out in Annex 3 1. The registrant concerned will be asked to update the information or explain to the JTRS why the information does not need to be updated. Where the registrant concerned does not co-operate, measures as outlined in the table of measures below (rows 2 to 4), may be applied.

II. COMPLAINTS

Stage 1: Submitting a complaint

1. Any person may submit a complaint to the JTRS by completing a standard form available on the website of the register. That form shall contain the following information:

(a) the registrant that is the subject of the complaint;

(b) the name and contact details of the complainant;

(c) details of the alleged non-compliance with the code of conduct, including possible documents or other materials supporting the complaint, an indication of whether any harm was caused to the complainant and grounds for suspecting intentional non-compliance.

Anonymous complaints shall not be considered.

2. The complaint shall specify the clauses of the code of conduct which the complainant alleges have not been complied with. Any complaint, where the non-compliance is, from the outset, deemed to be clearly unintentional by the JTRS, may be re-qualified by the JTRS as an "alert".

3. The code of conduct shall apply exclusively to relations between interest representatives and the EU institutions and may not be used to regulate relations between third parties or between registrants.

1 Point (d) requires interest representatives, in their relations with the EU institutions and their Members, officials and other staff, to "ensure that, to the best of their knowledge, information which they provide upon registration and subsequently in the framework of their activities covered by the register is complete, up-to-date and not misleading" and to "accept that all information provided is subject to review and agree to co-operate with administrative requests for complementary information and updates;".

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Stage 2: Admissibility

4. On reception of the complaint the JTRS shall:

(a) acknowledge receipt of the complaint to the complainant within five working days;

(b) determine whether the complaint falls within the scope of the register, as outlined in the code of conduct set out in Annex 3 and stage 1 above;

(c) verify any evidence adduced to support the complaint, whether this takes the form of documents, other materials or personal statements; in principle any material evidence shall be sourced from the registrant concerned, from a document issued by a third party or from publicly available sources. Mere value judgments presented by the complainant shall not be considered to be evidence;

(d) on the basis of the analyses referred to in points (b) and (c), decide on the admissibility of the complaint.

5. If the complaint is deemed inadmissible, the JTRS shall inform the complainant in writing, stating the reasons for the decision.

6. If the complaint is deemed admissible, both the complainant and the registrant concerned shall be informed by the JTRS of the decision and of the procedure to be followed, as set out below.

Stage 3: Handling of an admissible complaint - examination and provisional measures

7. The registrant concerned shall be notified by the JTRS of the content of the complaint and of the clause(s) allegedly not complied with and shall be invited at the same time to submit a position in response to that complaint within 20 working days. In support of that position, and within the same timeframe, a memorandum produced by a representative professional organisation may also be submitted by the registrant, in particular for regulated professions or organisations subject to a professional code of conduct.

8. Non-compliance with the deadline indicated in paragraph 7 shall lead to a temporary suspension of the registrant concerned from the register until co-operation is resumed.

9. All information collected during the investigation shall be examined by the JTRS which may decide to hear the registrant concerned, or the complainant, or both.

10. If examination of the material provided shows the complaint to be unfounded, the JTRS shall inform both the registrant concerned and the complainant of the decision to that effect, stating the reasons for the decision.

11. If the complaint is upheld, the registrant concerned shall be temporarily suspended from the register pending the taking of steps to address the issue (see Stage 4 below) and may be subject to a number of additional measures including removal from the register and withdrawal, where applicable, of any authorisation for access to the European Parliament's premises in

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accordance with the internal procedures of that institution (see Stage 5 and rows 2-4 in the table of measures below), notably in cases of non co-operation.

Stage 4: Handling of an admissible complaint - resolution

12. Where a complaint is upheld and problematic issues are identified, the JTRS will take all necessary steps in cooperation with the registrant concerned to address and resolve the issue.

13. If the registrant concerned co-operates, a reasonable period of time shall be allocated by the JTRS, on a case-by-case basis, to achieve resolution.

14. Where a possible resolution of the issue has been identified, and the registrant concerned co-operates to give effect to that resolution, the registration pertaining to that registrant shall be reactivated, and the complaint closed. The JTRS shall inform both the registrant concerned and the complainant of the decision to that effect, stating the reasons for the decision.

15. Where a possible resolution of the issue has been identified, and the registrant concerned does not co-operate to give effect to that resolution, the registration pertaining to that registrant shall be deleted (see rows 2 and 3 of the table of measures below). The JTRS shall inform both the registrant concerned and the complainant of the decision to that effect, stating the reasons for the decision.

16. Where a possible resolution of the issue requires a decision from a third party, including an authority in a Member State, the final decision by the JTRS shall be suspended until such time as that decision has been taken.

17. If the registrant does not co-operate within 40 working days of the notification of the complaint under paragraph 7, measures for non-compliance shall be applied (see paragraphs 19 to 22 of Stage 5 and rows 2 to 4 of the table of measures below).

Stage 5: Handling of an admissible complaint - measures to be applied in the event of non-compliance with the code of conduct

18. Where immediate corrections are made by the registrant concerned, both the complainant and the registrant concerned will receive from the JTRS written acknowledgement of the facts and their corrections (see row 1 of the table of measures below).

19. Failure to react by the registrant concerned within the deadline of 40 days set out in paragraph 17 shall result in removal from the register (see row 2 of the table of measures below) and loss of access to any incentives linked to registration.

20. Where inappropriate behaviour has been identified, the registrant concerned shall be removed from the register (see row 3 of the table of measures below) and shall lose any incentives linked to registration.

21. In cases referred to in paragraphs 19 and 20, the registrant concerned may re-register, if the grounds leading to removal have been remedied.

22. Where either non-co-operation or inappropriate behaviour are deemed to be repeated and deliberate, or where serious non-compliance has been identified (see row 4 of the table of

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measures below), a decision to prohibit re-registration for a time period of either one year or two years (depending on the gravity of the case) shall be adopted by the JTRS.

23. Any measure adopted under paragraphs 18 to 22 or rows 1 to 4 in the table of measures below shall be notified by the JTRS to the registrant concerned and to the complainant.

24. In cases where a measure adopted by the JTRS results in a long-term removal from the register (see row 4 in the table of measures below), the registrant concerned may - within 20 working days of the notification of the measure - submit a reasoned request for re-examination of that measure to the Secretaries-General of the European Parliament and of the European Commission.

25. Upon expiry of the 20 days deadline or after the Secretaries-General have taken a final decision, the relevant Vice-President of the European Parliament and the relevant Vice-President of the European Commission shall be informed and the measure shall be mentioned publicly in the register.

26. Where a decision on prohibiting re-registration for a certain time period entails a withdrawal of the possibility of requesting authorisation to access the European Parliament's premises as an interest representative, a proposal by the Secretary-General of the European Parliament shall be submitted to the College of Quaestors, who shall be invited to authorise the withdrawal of the related access authorisation held by the individual or individuals concerned for that time period.

27. In its decisions on applicable measures under this Annex, the JTRS shall have due regard to the principles of proportionality and good administration. The JTRS shall operate under the coordination of a Head of Unit in the Secretariat-General of the European Commission, and under the authority of the Secretaries-General of the European Parliament and the European Commission, who shall be kept duly informed.

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Table of measures available in the event of non-compliance with the code of conduct

Type of non-compliance (numbers refer to the paragraphs above)

Measure Publication of measure in the register

Formal decision to withdraw access to European Parliament premises

1 Non-compliance, immediately corrected (18)

Written notification acknowledging the facts and their correction.

No No

2 Non-co-operation with JTRS (19 and 21)

Removal from the register, de-activation of the authorisation for access to European Parliament premises and loss of other incentives

No No

3 Inappropriate behaviour (20 and 21) Removal from the register, de-activation of the authorisation for access to European Parliament premises and loss of other incentives.

No No

4 Repeated and deliberate non-co-operation or repeated inappropriate behaviour (22) and/or serious non-compliance.

a) Removal from the register for one year, and formal withdrawal of the authorisation for access to European Parliament premises (as an accredited interest group representative) ;b) Removal from the register for two years and formal withdrawal of the authorisation for access to European Parliament premises (as an accredited interest group representative).

Yes, by decision of the Secretaries-General of the European Parliament and of the European Commission.

Yes, by decision of College of Quaestors

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P7_TA-PROV(2014)0377

Tripartite social summit for growth and employment

European Parliament resolution of 15 April 2014 on the proposal for a Council decision on a Tripartite Social Summit for Growth and Employment (COM(2013)0740 – 2013/0361(APP))

The European Parliament,

– having regard to the proposal for a Council decision (COM(2013)0740),

– having regard to Rule 81(3) of its Rules of Procedure,

– having regard to the interim report of the Committee on Employment and Social Affairs (A7-0136/2014),

1. Requests the Council to take into account the following modifications:

The proposal for a Council decision should be modified as follows:

Modification 1

Proposal for a Council decisionRecital 8

Text proposed by the Commission Modification

(8) In its conclusions of 28 June 2013, the European Council noted that the social dimension of the EMU should be strengthened and highlighted in this context the key role of the social partners and social dialogue. Accordingly, the Commission in its Communication (COM(2013)690) of 2 October 2013 on the social dimension of the EMU, addressed the issue of promoting social dialogue at national and EU levels and announced a proposal to revise the 2003 Council Decision.

(8) In its conclusions of 28 June 2013, the European Council noted that the social dimension of the EMU should be strengthened and highlighted in this context the key role of the social partners and social dialogue. Accordingly, the Commission in its Communication (COM(2013)690) of 2 October 2013 on the social dimension of the EMU, addressed the issue of promoting social dialogue at national and EU levels and announced a proposal to revise the 2003 Council Decision, and referred to the Tripartite Social Summit as a key opportunity to involve the social partners in the European Semester process.

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Modification 2

Proposal for a Council decisionRecital 9 a (new)

Text proposed by the Commission Modification

(9a) In the Declaration by the European Social Partners on Social Partner Involvement in European Economic Governance adopted on 24 October 2013, the EU social partners confirmed their support for the Tripartite Social Summit for growth and employment and called for a coherent process of consultation of the social partners in the context of the European Semester.

Modification 3

Proposal for a Council decisionArticle 1

Text proposed by the Commission Modification

The task of the Tripartite Summit for Growth and Employment shall be to ensure, in compliance with the Treaty and with due regard for the powers of the institutions and bodies of the Union, that there is a continuous concertation between the Council, the Commission and the social partners. It will enable the social partners at European level to contribute, in the context of their social dialogue, to the various components of the Union’s strategy for growth and jobs. For that purpose, it shall draw on the upstream work of and discussions between the Council, the Commission and the social partners in the different concertation forums on economic, social and employment matters.

The task of the Tripartite Summit for Growth and Employment shall be to ensure, in compliance with the Treaty and with due regard for the powers of the institutions and bodies of the Union, that there is a continuous concertation between the Council, the Commission and the social partners, as well as a coordination of their strategies towards a high level of quality and sustainable employment. It will enable the social partners at European level to contribute, in the context of their social dialogue and their expertise, to the various components of the Union’s strategy for growth and jobs. For that purpose, it shall draw on the upstream work of and discussions between the Council, the Commission and the social partners in the different concertation forums on economic, social and employment matters.

Modification 4

Proposal for a Council decisionArticle 2 – paragraph 1

390

Text proposed by the Commission Modification

1. The Summit shall consist of the President of the European Council, the Council Presidency and the two subsequent presidencies, the Commission and the social partners, represented at the highest level. The ministers from those three presidencies and the Commissioner responsible for employment and social affairs shall also be present. Depending on the agenda, other ministers from these three presidencies and other Commissioners may also be invited to take part.

1. The Summit shall consist of the President of the European Council, the Council Presidency and the two subsequent presidencies, the Commission and the social partners, represented at the highest level. The ministers from those three presidencies and the Commissioner responsible for employment and social affairs shall also be present. Depending on the agenda, other ministers from these three presidencies, other Commissioners and the Chair of the Committee on Employment and Social Affairs of the European Parliament may also be invited to take part. .

Modification 5

Proposal for a Council decisionArticle 2 – paragraph 3 – subparagraph 1

Text proposed by the Commission Modification

Each delegation shall consist of representatives of European cross-industry organisations, either representing general interests or more specific interests of supervisory and managerial staff and small and medium-sized businesses at European level.

Each delegation shall consist of representatives of European cross-industry organisations, either representing general interests or more specific interests of supervisory and managerial staff and micro, small and medium-sized businesses at European level.

Modification 6

Proposal for a Council decisionArticle 2 – paragraph 3 – subparagraph 2

Text proposed by the Commission Modification

Technical coordination shall be provided for the workers’ delegation by the European Trade Union Confederation (ETUC) and for the employers’ delegation by the Confederation of European Business (BUSINESSEUROPE). The ETUC and BUSINESSEUROPE shall ensure that the

Technical coordination shall be provided for the workers’ delegation by the European Trade Union Confederation (ETUC) and for the employers’ delegation by the Confederation of European Business (BUSINESSEUROPE). The ETUC and BUSINESSEUROPE shall ensure that the

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views expressed by the specific and sectoral organisations are fully taken into account in their contributions and shall, where appropriate, include representatives from some of those organisations in their delegations.

views expressed by the specific and sectoral organisations are fully taken into account in their contributions and shall, where appropriate, include representatives from some of those organisations with the authority to speak in their delegations.

Modification 7

Proposal for a Council decisionArticle 3 – paragraph 1

Text proposed by the Commission Modification

1. The agenda for the Summit shall be determined jointly by the Council, the Commission and the workers’ and employers’ cross-industry organisations taking part in the work of the Summit. To this end, preparatory meetings take place between the services of the Council, the Commission and with ETUC and BUSINESSEUROPE.

1. The agenda for the Summit shall be determined jointly by, and based on the equal partnership between, the Council, the Commission and the workers’ and employers’ cross-industry organisations taking part in the work of the Summit. To this end, preparatory meetings take place between the services of the Council, the Commission and with ETUC and BUSINESSEUROPE.

Modification 8

Proposal for a Council decisionArticle 3 – paragraph 2

Text proposed by the Commission Modification

2. The matters on the agenda shall be discussed by the Council meeting in its Employment, Social Policy, Health and Consumer Affairs configuration.

2. The matters on the agenda shall be discussed by the Council meeting in its Employment, Social Policy, Health and Consumer Affairs configuration, based as appropriate on a contribution of all its preparatory bodies.

Modification 9

Proposal for a Council decisionArticle 4 – paragraph 1

Text proposed by the Commission Modification

1. The Summit shall meet at least twice a year. The meetings shall be held before the respective spring and autumn sessions of the European Council.

1. The Summit shall meet at least twice a year. The meetings shall be held before the respective spring and autumn sessions of the European Council, and the outcome of

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the Summit shall be presented to the following European Council for decision-making.

Modification 10

Proposal for a Council decisionArticle 5

Text proposed by the Commission Modification

The joint chairmen shall draw up a summary of the Summit’s discussions in order to inform the relevant Council configurations and the general public.

The joint chairmen shall draw up a summary of the Summit’s discussions in order to inform the relevant Council configurations, the European Parliament and the general public.

2. Instructs its President to forward this resolution to the Council and the Commission.

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P7_TA-PROV(2014)0378

MFF negotiations 2014-2020: lessons to be learned and the way forward

European Parliament resolution of 15 April 2014 on negotiations on the MFF 2014-2020: lessons to be learned and the way forward (2014/2005(INI))

The European Parliament,

having regard to the proposal for a Council regulation laying down the multiannual financial framework (MFF) for the years 2014-2020 (COM(2011)0398), amended on 6 July 2012 (COM(2012)0388), and to the Draft Interinstitutional Agreement (IIA) between the European Parliament, the Council and the Commission on cooperation in budgetary matters and on sound financial management (COM(2011)0403),

having regard to its consent of 19 November 2013 to the MFF Regulation1, in accordance with Article 312 of the Treaty on the Functioning of the European Union, and to its approval, on the same day, of the conclusion of the IIA2,

having regard to the MFF and IIA, as finally adopted on 2 December 2013 and published in the Official journal on 20 December 2013,

having regard to its resolution of 8 June 2011 on ‘Investing in the future: a new Multiannual Financial Framework (MFF) for a competitive, sustainable and inclusive Europe’3,

having regard to its resolution of 23 October 2012 in the interests of achieving a positive outcome of the Multiannual Financial Framework 2014-2020 approval procedure4,

having regard to its resolution of 13 March 2013 on the European Council conclusions of 7-8 February 2013 concerning the Multiannual Financial Framework5,

having regard to its resolution of 3 July 2013 on the political agreement on the Multiannual Financial Framework 2014-20206,

having regard to its resolution of 12 December 2013 on relations between the European Parliament and the institutions representing the national governments7,

having regard to Rule 48 of its Rules of Procedure,

having regard to the report of the Committee on Budgets and the opinions of the Committee on Constitutional Affairs, the Committee on Employment and Social Affairs,

1 Texts adopted, P7_TA(2013)0455.2 Texts adopted, P7_TA(2013)0456.3 OJ C 380 E, 11.12.2012, p. 89.4 OJ C 68 E, 7.3.2014, p. 1.5 Texts adopted, P7_TA(2013)0078.6 Texts adopted, P7_TA(2013)0304.7 Texts adopted, P7_TA(2013)0599.

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the Committee on Regional Development and the Committee on Civil Liberties, Justice and Home Affairs (A7-0254/2014),

A. whereas the agreement on the MFF 2014-2020 was the outcome of long and strenuous negotiations that lasted two and a half years; whereas the final political agreement could only be reached at the highest political level between the three Presidents (Parliament, the Council Presidency and the Commission) according to Article 324 of the TFEU;

B. whereas the overall level of the next MFF (EUR 960 billion in commitments, EUR 908 billion in payments at 2011 prices), as decided by the European Council and eventually endorsed by Parliament, represents a cut of 3,5 % in commitments and 3,7 % in payments compared to the 2007-2013 financial framework, despite the growing EU competences following the Lisbon Treaty and the enlargement of the Union to 28 Member States; whereas this level falls short of EU political goals and commitments, in particular in relation to the Europe 2020 strategy;

C. whereas the EU annual budget will continue to represent approximately 1 % of EU GNI in the coming years, a level reached already in the early 1990s, and well below the own resources ceiling of 1,29 % of EU GNI for commitments and 1,23 % of EU GNI for payments, as decided initially in 1992 and reconfirmed in 2010;

D. whereas, faced politically with the impossibility of changing the overall MFF figures decided by the European Council, Parliament focused on improving the implementation of the MFF by successfully negotiating the inclusion of new provisions that will help to make the new financial framework and the new EU annual budget more operational, consistent, transparent and responsive to the needs of EU citizens and to allow the MFF ceilings to be used to the fullest possible extent; whereas these provisions concern, in particular, the new arrangements relating to the MFF revision, flexibility, the unity and transparency of the EU budget, along with a further engagement on reforming the financing of the EU budget (Joint Declaration on own resources);

E. whereas, in adherence to the guiding principle that ‘nothing is agreed until everything is agreed’, Parliament gave its consent to the new MFF Regulation and approved the new Interinstitutional Agreement on 19 November 2013, following the Council’s fulfilment of the conditions set out in Parliament’s resolution of 3 July 2013, including the adoption of an additional EUR 11,2 billion in payments for 2013;

F. whereas the Council failed to make any progress on a much needed reform of the current system for financing the EU budget, despite the ambitious proposals put forward by the Commission aimed not only at overcoming the stalemate caused by the lack of a genuine own resources system but also at making the system of financing the EU budget simpler, fairer and transparent to EU citizens;

G. whereas, following the agreement on the MFF 2014-2020, the MFF remains non-coterminous with the mandates of the Parliament and Commission whose terms begin in 2014;

H. whereas the possibilities made available in the Treaty of Lisbon to modify the decision-making procedures for the MFF and own resources decisions were not exploited;

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1. Strongly regrets the fact that both the procedure leading up to the agreement on the MFF 2014-2020 and the political debate surrounding these negotiations demonstrated a clear lack of shared vision as regards the EU budget and political priorities, showed that there are very divergent approaches among the EU institutions, and fell short of Parliament’s increased role and prerogatives under the Treaty of Lisbon; considers it of the utmost importance, therefore, that this report draw the necessary political and institutional lessons, which can serve as a basis for the preparation of future negotiations, notably in relation to the post-electoral revision of the MFF, due to be launched by the Commission before the end of 2016 at the latest;

Political considerations

2. Acknowledges that the fiscal consolidation that Member States are currently facing made a more ambitious agreement on the MFF 2014-2020 infeasible; deeply regrets, however, the fact that the role of the EU budget as an important and common policy instrument for overcoming the current economic and social crisis was not properly recognised; points out that the EU budget is primarily an investment budget that offers a unique framework for coordinating and enhancing national efforts made to regain growth, stimulate competitiveness and generate employment in the whole EU;

3. Is deeply concerned at the fact that budgetary debates in the Council have been for many years poisoned by the logic of ‘fair returns’ instead of being driven by the logic of the European added-value; considers that, while this debate already existed before the introduction of a GNI-based resource, the situation has seriously intensified due to the current system of EU financing, whereby some 74 % of revenues stem from national contributions based on GNI instead of genuine own resources, as foreseen in the Treaty of Rome and all successive EU Treaties; considers that such a system places disproportionate emphasis on net balances between the Member States and has led to the progressive introduction of complex and opaque rebates and other correction mechanisms for the financing of the EU budget;

4. Believes that this logic also prevailed in the way the MFF agreement was struck by the European Council on 8 February 2013; considers it regrettable that this was reflected in the fact that the national allocations, especially from the two biggest areas of expenditure in the EU budget, agriculture and cohesion policy, were determined at that moment; criticises, in particular, the increased number of special allocations and ‘gifts’ granted in the course of negotiations between Heads of State and Government, which are not based on objective and verifiable criteria, but rather reflect the bargaining power of Member States, trying to secure their national interests and maximise their net returns; denounces the lack of transparency in striking this agreement and the reluctance of the Council and the Commission to provide Parliament with all relevant documents; highlights that the European added value should prevail over national interests;

5. Strongly rejects this purely accounting vision of the EU budget, which disregards the European added value, contradicts the principle of EU solidarity and underestimates the current and potential role of the EU budget in strengthening economic governance; stresses that the EU budget is predominantly an investment budget with a strong leverage effect that makes possible a number of projects that would otherwise be difficult or impossible to implement, a catalyst for growth, competitiveness and jobs across the Union and a powerful agent for reform; strongly regrets, therefore, that some Member

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States seem to regard national contributions to the EU budget purely as a cost to be minimised;

6. Regrets that the European Council took a top-down approach to deciding the overall size of the MFF 2014-2020, which in turn demonstrates a worrying discrepancy between EU political commitments which the European Council has been making and its reluctance to adequately finance them; believes, on the contrary, that this decision should be based on a bottom-up process, resulting from a thorough assessment of EU financial needs and political objectives as set out in EU multiannual programmes and policies defined by the legislative authority;

7. Is, therefore, convinced that any decision on the financial framework should be preceded by – and based on – a genuine political debate on the role, function and added value of the EU budget and on its compatibility with the political strategy adopted by the Union and operational priorities and objectives assigned to the Union; considers that, in order to bridge the gap between divergent visions on what the EU budget stands for and what it can achieve, this debate should be organised in due time and involve the three EU institutions and all national parliaments, but also engage the highest political level in the Member States;

8. Is convinced, moreover, that tangible progress can only be achieved following an in-depth reform of the financing of the EU budget that should respect the letter and the spirit of the Treaty and return to a system of genuine, clear, simple and fair own resources; stresses that the introduction of one or several new own resources will reduce the share of GNI-based contributions to the EU budget to a minimum and, accordingly, reduce the burden on national treasuries; reiterates its strong commitment to any process leading to the reform of the system of own resources, which is currently characterised by its complexity, opacity and inefficiency; regrets that the final Council agreement on own resources is even more complex than the previous one since it has introduced new rebates and exceptions;

Institutional considerations

9. Recalls that Parliament was the first EU institution to present its vision on the MFF 2014-2020 and the need to reform the financing of the EU budget, with the report of its specialised SURE Committee, in June 2011; believes that this early preparation helped Parliament to establish a large consensus on political priorities and remain united throughout the subsequent negotiating process; considers further that this report provided guidance for the Commission in drafting its own proposals on the MFF and own resources and appreciates the regular political dialogue that was established between the two institutions at all stages of the preparation of this report; considers that this practice should be further developed into a more structured dialogue between the two institutions ahead of the presentation of any MFF proposals;

10. Recalls that, pursuant to Article 312 TFEU, the Council unanimously adopts the MFF Regulation after obtaining the consent of Parliament, while the three EU institutions ‘shall take any measure necessary to facilitate its adoption’; notes, therefore, that the Treaty does not set out any concrete procedure for the involvement of Parliament in the MFF negotiations and that these modalities were subsequently determined in practice through a number of ad hoc arrangements agreed at political level at Parliament’s initiative;

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11. Considers it regrettable that, prior to the European Council agreement on the MFF of 8 February 2013, no meaningful negotiations were held between Parliament and the Council; considers that the numerous meetings held between its negotiating team and the successive Council presidencies on the margins of the relevant General Affairs Council meetings, and its participation in informal Council meetings dealing with the MFF, facilitated only some information-sharing between the Council and Parliament; sees, therefore, the need for Parliament to build further on the experience acquired and to use all means available to strengthen its influence on the spirit, calendar and content of the negotiations with the Council, by making the Council better acknowledge Parliament’s arguments and positions;

12. Deplores the fact that, despite Parliament’s strong objections, all successive ‘negotiating boxes’ presented by different Council presidencies and, ultimately, the European Council MFF agreement of 8 February 2013 contained a significant number of legislative elements that should have been decided under the ordinary legislative procedure; stresses that the legally required unanimity in the Council on the MFF Regulation could only be achieved by pre-empting certain major policy changes in EU sectoral policies, thereby hindering, in clear contradiction with the Treaties, Parliament’s prerogatives under co-decision, and in particular its right to amend on an equal footing with the Council;

13. Notes that genuine negotiations on the MFF Regulation and the IIA were launched only in May 2013, with Council negotiators not having a formal negotiating mandate but instead considering the MFF agreement by the European Council as the only point of reference, with no margin for any discussion; stresses that this attitude not only led to an unnecessary loss of time but also to the unacceptable attempt by Council to exclude certain topics from the negotiations, forcing Parliament to struggle, including at the highest political level, in order to engage in negotiations on every article of the MFF Regulation / IIA;

14. Recalls that, according to the Treaty, the European Council does not exercise legislative functions; insists, therefore, that the conclusions of the European Council are to be seen as negotiating instructions for the Council and that they in no case constitute red lines which cannot be negotiated with Parliament; calls for a standard formula recalling the provisions of Article 15(1) TFEU to be included in the conclusions of the European Council;

15. Deeply regrets the fact that the same problem marked the negotiations on EU multiannual programmes, notably in agriculture and cohesion policy; notes that the Council refused in several instances even to refer to the ‘MFF-related aspects’ of those legal bases; stresses the considerable effort and time that was needed by Parliament to ensure that all points of the legal bases decided by co-decision between the Council and Parliament remained on the negotiating table; notes with satisfaction that Parliament’s negotiators were eventually successful in challenging some parts of the European Council agreement;

16. Notes that the MFF figures (overall level and distribution per heading), as decided by the European Council, were not challenged in the end by Parliament, which acknowledged the particularly difficult economic and financial context at the time of this decision; stresses, however, that this should by no means be perceived as a precedent and reiterates its position that the MFF figures, and every other part of the European Council’s relevant political agreement, are subject to negotiations with Parliament;

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17. Stresses the need to significantly improve the modalities of any future MFF negotiations, in order to avoid deadlocks and save valuable time and resources in the course of negotiations; considers that these modalities should be formalised in an agreement at the highest political level, which should take account of the shortcomings of the recent negotiations and fully safeguard Parliament’s role and prerogatives, as set out in the EU Treaty; considers that this procedure should eventually be enshrined in the IIA itself, as is the case for the budgetary procedure;

18. Points to the tremendous amount of information exchange and coordination required inside Parliament to ensure consistency in the parallel negotiations of the MFF and the legislative bases of over 60 multiannual programmes; underlines that it is of high importance to distinguish the issues that are to be adopted by codecision and keep them in the remit of the respective committees to the maximum extent possible; suggests that in the next MFF negotiations the European Parliament should approach the legislative proposals in parallel and finally adopt them as a package, applying the principle that nothing is agreed until everything is agreed to the maximum extent possible;

19. Is convinced that the unanimity rule in the Council means that the agreement represents the lowest common denominator, based on the need to avoid the veto of a single Member State; stresses that a shift towards qualified majority voting for the MFF Regulation would be in line not only with the ordinary legislative procedure, used for the adoption of virtually all EU multiannual programmes, but also with the annual procedure for adopting the EU budget;

20. Notes that the general passerelle clause (Article 48(7) TEU) could be deployed by the European Council to make the shift towards qualified majority voting and the ordinary legislative procedure for the own resources and MFF decisions; recalls, moreover, that Article 312(2) TFEU in any case allows for the adoption of qualified majority voting for the MFF; urges the European Council to use both these passerelles for their intended purpose in order to streamline decision-making in the Council and to limit the extent to which the politics of national ‘juste retour’ prevail over the articulation of the common interest of the Union as a whole;

MFF 2014-2020: the way forward

21. Declares its intention to ensure that all new provisions that were successfully incorporated into the MFF Regulation and IIA are utilised in full in the annual budgetary procedure; expects that the Council will not attempt to impose restricted interpretations of these provisions, especially on the nature and scope of all special instruments, but that it will instead act responsibly and approve the necessary appropriations to meet both its previous commitments and unforeseen expenditure even if, as a result, the annual MFF ceilings need to be exceeded; recalls, in that context, that the MFF 2014-2020 ceilings have been set far below the own resources ceilings;

22. Places particular emphasis on the new rules on flexibility that should allow maximum use of the respective MFF ceilings for commitments and payments; stresses that the practice of previous financial frameworks whereby the annual EU budget remained far below the MFF ceilings, particularly in payment appropriations, can no longer be sustained;

23. Stresses, in this context, that the accumulated RALs have reached a critical level that might eventually lead the EU budget into structural deficit against the provisions of the

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Treaty (Articles 310 and 323 TFEU); is deeply concerned that the amount of unpaid bills at the end of the year has been constantly growing since 2011 (EUR 23,4 billion at the end of 2013 from cohesion policy alone), which will put significant pressure on the payment ceilings of the MFF 2014-2020; stresses the need to set the annual payments’ ceilings of the MFF accurately by taking due account of, inter alia, the dynamics of cohesion policy, including the timing of programming, implementation, final closure of the programmes and decommitments;

24. Emphasises that the purpose of the global margin for commitments is to support investments for growth and employment in Europe, and in particular youth employment; recalls that this instrument was an initiative by the European Parliament;

25. Recalls that the next Commission, which will come into office after the 2014 European elections, is due to launch a compulsory review and revision of the MFF 2014-2020 by the end of 2016; underlines the fact that this post-electoral MFF review/revision clause was one of Parliament’s key demands in the MFF negotiations, based on the need to allow the next Commission and Parliament to reassess the EU’s political priorities, hence endowing the MFF with renewed democratic legitimacy; emphasises that, following the economic crisis, investment levels in Europe dropped significantly between 2008 and 2012 and recalls that according to some estimates1, this will cost the continent EUR 540 billion in lost returns by 2020;

26. Stresses the need, in view of the post-electoral MFF review/revision, for the next Parliament to reflect in good time on political priorities, i.e. to identify areas for which more investments will be deemed necessary in the second half of the MFF 2014-2020; invites, for this purpose, the next Commission and the next Parliament to carefully evaluate the achievements of the targets of the Europe 2020 strategy, particularly in terms of employment and combatting the economic crisis, as well as the performance of key EU programmes, like Horizon 2020, in order to focus on areas of proven added value of EU spending and for which additional financial resources will be required;

27. Calls for the MFF mid-term review to prepare for an eventual reduction in the period for which the next MFF is agreed, so as to ensure its subsequent renegotiation during the mandate of each Parliament and Commission, thus ensuring full democratic legitimacy for regular decisions on the financial perspectives of the Union, while taking steps to meet the need for stability of programming cycles and for investment predictability; strongly believes that a five-year MFF cycle would enhance democratic legitimacy, improve the prioritisation of budgetary means and could be considered a precondition for more political debate;

28. Stresses that the Commission proposals for the MFF revision should take full account of the latest macroeconomic projections and include a thorough assessment of the operation of all special instruments, in particular the global margins in commitments and payments; recalls that this process will not have a downward impact on any pre-allocated national envelopes, including the ESF share of these national envelopes; expects, in this context, the Commission to provide Parliament and Council with identical and consistent data on figures and estimates in order to avoid misunderstandings in the negotiations with regard to the basis of discussion;

1 Address by the Chairman of the Board of Governors of the EIB during 2014 European Interparliamentary Week, 21 January 2014.

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29. Stresses the need to stimulate a broad and open discussion on the results achieved with the EU’s funding programmes, and in particular an assessment of the extent to which these programmes contribute to the achievement of the Europe 2020 objectives;

30. Emphasises that innovative financial instruments such as the European project bonds can have a very important role to play in stimulating much needed investments if designed correctly; urges the Commission in this regard to make optimal use of the upcoming evaluation also in the context of the review/revision of the MFF 2014-2020;

31. Welcomes the Joint Declaration by the three institutions agreed in the context of the MFF negotiations according to which the annual budgetary procedures will integrate, as appropriate, gender-responsive elements, taking into account the ways in which the overall financial framework of the Union contributes to increased gender equality (and ensures gender mainstreaming); stresses that these principles should be integrated into the Commission’s proposals on the MFF revision;

32. Reiterates its intention to make the compulsory MFF revision a key demand in the investiture of the next Commission; calls, therefore, on the next European Parliament to make the election of the proposed candidate for President of the Commission conditional upon a strong and non-ambiguous commitment to implementing the post-electoral review/revision clause and engaging in a genuine and deep political dialogue on its content;

33. Notes that the new Rules 70 and 70a (interinstitutional negotiations in legislative procedures) of Parliament’s Rules of Procedure will apply for the next round of negotiations ; recommends that, early in Parliament’s next mandate, the committee responsible for the Rules of Procedure be asked to look at rationalising those rules with Rule 75 (MFF), Rule 75c (financial trialogue) and Rule 81(3) (consent procedure) with a view to drafting a single coherent Rule specific to the special legislative procedures laid down in Articles 311 and 312 TFEU concerning the determination of the mandate, the conduct of the trialogues (including the role of the President), and scrutiny by the plenary;

34. Considers that, at the time of the next revision of the Treaties, the Convention should make proposals for a system of genuine codecision between the Council and Parliament on the adoption of the MFF and own resources decisions;

35. Strongly believes that the High Level Group on Own Resources represents a unique opportunity to overcome the deadlock that has arisen over the reform of the current own-resources system; expects that it will contribute significantly to understanding the shortcomings of the current system and the benefits that can derive from an in-depth, comprehensive reform and the introduction of new and genuine own resources which can significantly reduce the share of GNI contributions to the EU budget;

36. Recalls that the High Level Group has a mandate to examine all aspects of the reform of the own resources system; is firmly committed to working intensively, through its three representatives, at all stages of this process and to bringing it to a successful conclusion; counts on the Council’s equal ‘ownership’ and commitment to this process; emphasises the need to raise awareness also among national parliaments of the issues at stake; stresses that the findings and conclusions of this High Level Group should be ready in good time to be considered during the 2016 MFF review/revision, in order to pave the

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way for possible reforms to become operational by the next multiannual financial framework;

37. Expresses its firm conviction that any new fiscal capacity or budget developed specifically for eurozone Member States whose fiscal functions are not covered by the MFF must be developed within the Union framework and must be subject to proper democratic scrutiny and accountability through the existing institutions;

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38. Instructs its President to forward this resolution to the European Council, the Council, the Commission and the national parliaments.

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