Explanatory Memorandum to COM(2023)359 - Amendment of Decision (EU) 2017/1324 as regards the continuation of the Union’s participation in the Partnership for Research and Innovation in the Mediterranean Area (PRIMA) under Horizon Europe

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dossier COM(2023)359 - Amendment of Decision (EU) 2017/1324 as regards the continuation of the Union’s participation in the Partnership for ...
source COM(2023)359
date 28-06-2023


1. CONTEXT OF THE PROPOSAL

• Reasons for and objectives of the proposal

The Partnership for Research and Innovation in the Mediterranean Area (PRIMA) is an Institutionalised European Partnership under Article 185 TFEU established by Decision (EU) 2017/13241, in which the EU participates in a research programme undertaken jointly by several Member States.

PRIMA aims to build research and innovation capacities and to develop knowledge and common innovative solutions for agro-food systems, to make them sustainable, and for integrated water provision and management in the Mediterranean area. Achieving this strategic objective will make water provision and food systems more climate resilient, efficient, cost-effective and environmentally and socially sustainable, and will contribute to solving water scarcity, food security, nutrition, health, well-being and migration problems upstream.

PRIMA currently consists of nineteen Participating States: eleven EU Member States (Croatia, Cyprus, France, Germany, Greece, Italy, Luxembourg, Malta, Portugal, Slovenia, and Spain); three countries associated to Horizon 2020 (Israel, Tunisia and Turkey) and five third countries non-associated to Horizon 2020 (Algeria, Egypt, Jordan, Lebanon and Morocco).

PRIMA started its operation in 2018 under the predecessor Framework Programme for Research and Innovation (R&I) Horizon 2020. The active period for launching R&I calls under Horizon 2020 will last until 2024. The total foreseen Union contribution under Horizon 2020 amounts to EUR 220 million and the original financial commitments of Participating States exceeded EUR 270 million. Currently, the Union’s contribution comes from the Horizon 2020 programme. Until the end of 2022, PRIMA funded 202 collaborative R&I projects with a total budget of EUR 285.7 million with the contribution from the Union’s budget at the level of EUR 142.67 million and with contribution from the Participating States at the level of EUR 143.03 million.

PRIMA was subject to an interim evaluation in 2022 published on 31 May 20232. According to the interim evaluation report, PRIMA has shown to be an effective instrument for R&I collaboration in the Mediterranean, implementing key R&I interests in line with the EU’s geopolitical priorities. Based on their positive experience, a majority of the Participating States declared their long-term commitment to this initiative and called for continued participation of the EU in the current form of an Article 185 TFEU institutionalised European partnership.

This proposal for an amendment of Decision 2017/1324 (the PRIMA Basic Act) constitutes an extension of active operation (publication of R&I calls) until 2027 under the current R&I Framework Programme- Horizon Europe. The amendment will provide for additional budget, from both the EU financial contribution from the Horizon Europe programme and the Participating States’ financial contributions, to ensure continuation at the current level of activities for three further years. The PRIMA operating rules will be adapted to the Horizon Europe rules including better protection of the Union’s financial interests, monitoring and reporting. The extension of the active phase of PRIMA to 2027 will bring this initiative in line with the programme cycle under Horizon Europe.

The amendment of the PRIMA Basic Act will enable the extended activities of PRIMA to continue its current objectives of tackling the existing and emerging challenges related to water, agricultural and food systems in the Mediterranean region, while promoting science diplomacy, facilitating the alignment of national R&I policies and enabling international scientific collaboration. The thematic focus became even more relevant in recent years, due to increasing effects of climate change, the effects of the COVID-19 pandemic and the destabilising effect of Russia’s illegal and unjustified aggression against the Ukraine on the fragile agriculture markets in a number of Mediterranean countries.

• Consistency with existing policy provisions in the policy area

The thematic areas and objectives of the PRIMA partnership in terms of Decision (EU) 2017/1324 remain unchanged. The thematic focus on water, agriculture and food systems is consistent with the current priorities of the EU, in particular with the European Green Deal3 and related Farm to Fork strategy4, and Climate Adaptation strategy5 and Zero Pollution Action Plan6. The objectives of PRIMA are also well aligned with the objectives of the EU Bioeconomy Strategy7.

The Horizon Europe R&I programme is set to contribute to the European Green Deal and the PRIMA partnership appears to be a specific instrument for effective contribution to a number of Green Deal objectives. The PRIMA partnership is more particularly in conformity with the objectives of Horizon Europe cluster (vi) ‘Food, Bioeconomy, Natural Resources, Agriculture and Environment’. The PRIMA Strategic Research and Innovation Agenda is fully compatible with the cluster (vi) Strategic Plan. The PRIMA annual work programmes are closely coordinated with cluster (vi) part of the Horizon Europe Work Programmes and programming documents of the European Missions8 ‘Soil Deal for Europe’, ‘Restore our Oceans and Waters’ and ‘Adaptation to Climate Change’ to ensure complementarity and synergies.

The proposal for extension of PRIMA is consistent with the criteria and rules for institutionalised European partnerships stipulated by the Horizon Europe Regulation9. In particular, it complies with the new requirements for Article 185 TFEU partnerships introduced by the Horizon Europe Regulation.

The condition of mandatory participation threshold of at least 40% of the Member States set out in Annex III is met, as eleven Member States representing 41% of Member States participate in PRIMA.

The long-term commitment of partners as required by Annex III 1(d) was demonstrated at the launch of the PRIMA partnership when the majority of Participating States committed to the funding period of ten years. The Participating States reiterated their commitment in the declaration of the Union for Mediterranean ministerial meeting in July 202210, in their letters to the Commission and in their statements at the Competitiveness Council in December 2022.

The PRIMA partnership fits within the scope of the thematic areas for institutionalised European partnerships defined in Annex VI of the Horizon Europe Regulation, specifically to the partnership area 5 ‘Sustainable, inclusive and circular bio-based solutions’, as water, agricultural and food systems are integral parts of bioeconomy and bio-based systems.

• Consistency with other Union policies

PRIMA develops and demonstrates innovative solutions that support the implementation of a number of EU policies. PRIMA- funded projects, with their thematic focus on water, agriculture and food, contribute to the objectives of sectoral policies such as the water policy, in particular the Water Framework Directive11, the Common Agricultural Policy, the Bioeconomy Strategy, the Climate Adaptation Strategy and the Circular Economy Action Plan12.

As an instrument for international collaboration, PRIMA strengthens strategic, long-term regional cooperation between the EU and the Southern Mediterranean region, in line with the EU cooperation framework with Southern Neighbourhood Countries, as expressed in the Joint Communication for a New Agenda for the Mediterranean13 and its Economic and Investment Plan, as well as the regional policy dialogue with Mediterranean partners endorsed at the Union for the Mediterranean (UfM) Regional Platform for Research and Innovation. The New Agenda for the Mediterranean sets out objectives for the years to come to build fairer, more prosperous and inclusive societies for the benefit of people, especially the youth, where R&I is a key element.

In the context of the Union for Mediterranean R&I Roadmaps, the PRIMA partnership will be instrumental for the implementation of the climate change roadmap, as acknowledged by the UfM R&I Ministerial Declaration in 2022.

PRIMA supports also the implementation of the EU’s Global Approach to R&I14, which prioritises the Mediterranean as one of its regions for cooperation.

By contributing to solving water scarcity, food security, nutrition, health, well-being and migration problems, PRIMA will support significantly the implementation of the 2030 United Nations Agenda for Sustainable Development, in particular Sustainable Development Goal (SDG) 2 (Zero Hunger), SDG 6 (Clean Water and Sanitation), SDG 10 (Reduced Inequalities), and SDG 12 (Responsible Consumption and Production), notably in the Mediterranean region.

By addressing the interlinkages between water, energy and food and their reliance and impact on ecosystems, PRIMA plays an important role to accelerate the much-needed transition towards a green economy in the Mediterranean region fostering green and sustainable development solutions to increase the resilience to climate change, thus contributing to the European Green Deal objectives in the region. More particularly, PRIMA activities under the thematic area of water management contributes to delivering the European Green Deal objectives related to the Zero Pollution Action Plan, Biodiversity Strategy and the upcoming Integrated Nutrient Management Action Plan, while activities related to thematic areas on farming systems and food value chain will support the implementation of Farm to Fork Strategy.

PRIMA is further exploring promising synergies with other Horizon Europe instruments, e.g. the Horizon Europe missions, notably the missions “A Soil Deal for Europe” and “Save our Oceans and Waters by 2030”. PRIMA envisages sharing its knowledge, infrastructure and network with relevant partners to support missions by designing specific joint actions (e.g. coordinated calls with the Horizon Europe Mission “A Soil Deal for Europe” in PRIMA’s Annual Work Plans). PRIMA can further strengthen the international dimension of Horizon Europe Partnerships15: Sustainable food systems for people, planet & climate; Water Security for the Planet; Agroecology living labs and research infrastructures; Agriculture of data; Animal health and welfare.

PRIMA is also complementary to the Food and Nutrition Security and Sustainable Agriculture (FNSSA) priority of the EU-African Union High Level Policy Dialogue research and innovation cooperation. The FNSSA priority opens the way to PRIMA partners for further pan-African and cross-European collaboration.

2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

• Legal basis

The proposal extends the period within which the Union shall continue its participation in PRIMA setting out the necessary legal framework to enable it to operate under the Horizon Europe R&I Framework Programme as well as the Financial Regulation16 while further pursuing the activities initiated under the Horizon 2020 R&I Framework Programme.

The proposed amendments are founded on the same legal basis as the legislative act they seek to amend, notably Article 185 TFEU and second paragraph of Article 188 TFEU.


• Subsidiarity (for non-exclusive competence)

The subsidiarity principle applies, as the proposal does not fall under the exclusive competence of the European Union. Subsidiarity is safeguarded by the proposal being based on Article 185 TFEU, which explicitly provides for the participation of the Union in research programmes undertaken by several Member States.

The objectives of PRIMA, the attainment of which shall continue to be central in this proposal, cannot be sufficiently achieved by the Member States acting alone this taking into account that there is an evident, demonstrable added value in action being undertaken at Union level given the scale, scope and complexity of the efforts needed for the achievement of the ambitions it aims to pursue. Moreover, given that the proposal aims at supplementing already existing EU legislation, this continues to be best achieved at EU level rather than by different national initiatives. Notwithstanding this, the proposal should also continue to complement and reinforce national, local and regional activities in the relevant area.

• Proportionality

The proposal complies with the proportionality principle, as Member States will be responsible for developing their joint programme and all operational aspects. The dedicated implementation structure -(PRIMA-IS)- has already demonstrated that it can implement the programme efficiently and effectively17. The Union will provide incentives for improved coordination, ensure synergies with and contributions to EU policies and the priorities of Horizon Europe, monitor implementation of the programme and ensure protection of the EU’s financial interests

• Choice of the instrument

This proposal is for an amending Decision of a previously existing legislative act enacted on the basis of Article 185 TFEU. For this kind of instrument, Article 188 i TFEU requires that the European Parliament and the Council adopt a decision.

The results of the first years of PRIMA implementation and the indications from Call for Evidence (see also section 3. ‘Stakeholder consultation’ below) have shown that an institutionalised European partnership under Article 185 TFEU is the most appropriate way to achieve the objectives of PRIMA. Such an institutionalised partnership is also the preferred choice of the Participating States.

Continuing PRIMA as a partnership initiative under Article 185 TFEU would further enable the development of the ongoing collaboration with Neighbourhood countries. The Union and the countries concerned will carry on determining together their mutual priorities, entering a new phase of cooperation, in line with the priorities of the European Neighbourhood Policy.

Furthermore, an institutionalised European partnership based on Article 185 TFEU allows a wide range of research and innovation actions and financial contributions, according to the funding source (either Horizon Europe or national), management and rules, which has proven to be efficient during the first years of the implementation of PRIMA. This instrument is also appropriate for the participation of third countries.

3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS

• Ex-post evaluations/fitness checks of existing legislation

In 2022, independent, third-party experts conducted an interim evaluation of PRIMA covering the period from the inception of PRIMA (2017) until March 2022.

The interim evaluation confirmed that PRIMA had made good progress in implementing its objectives and it is well managed. PRIMA adequately addresses environmental, socio-economic and policy challenges that are crucial to the future development and sustainability of the Mediterranean region, and plays a unique role in the Mediterranean research and innovation ecosystem. PRIMA helped foster scientific integration across Participating States, allowing especially the Southern Mediterranean Participating States to leverage their research and innovation capacities.

PRIMA’s EU added value is also high, as it contributes to key EU political priorities, objectives and initiatives such as the European Green Deal, in particular Farm to Fork and Biodiversity strategies, Bioeconomy Strategy, Climate Adaptation Strategy and the Circular Economy Action Plan, as well as the overarching SDGs.

The interim evaluation report also recommends actions to further improve PRIMA outcomes and impacts.

• Stakeholder consultations

No stakeholder consultation has been carried out. The original public consultation input is still considered as valid. The character of proposed amendments does not require a new stakeholders consultation.

• Collection and use of expertise

In the context of the interim evaluation, a Call for Evidence has been published and the results have been taken into consideration.

• Impact assessment

No impact assessment has been carried out. The original analysis and choice of options is still considered as valid. The character of the amendment does not require a new impact assessment.

• Regulatory fitness and simplification

No simplification effect is expected as the proposal is an extension of the existing partnership.

• Fundamental rights

The proposed Decision has no consequences for the protection of fundamental rights.

4. BUDGETARY IMPLICATIONS

The total Union contribution to the extended initiative shall be up to EUR 325 million including the EEA contribution. Out of this amount, EUR 220 million were committed from the Horizon 2020 Programme for the programming period 2018-2024. EUR 105 million, to be committed in the period 2025-2027, will come from the Horizon Europe, cluster (vi) ‘Food, Bioeconomy, Natural Resources, Agriculture and Environment’.

The maximum amount of the EU contribution to administrative costs for the whole duration of the initiative is up to 6%, corresponding to EUR 19.5 million from the total Union contribution of EUR 325 million.

The EU contribution is managed by the PRIMA Implementation Structure (PRIMA-IS), following the delegation agreement and transfer of funds agreement. The provisions of the Decision and of the delegation agreement concluded in 2018 between the Commission and the PRIMA-IS must ensure that the EU financial interests are protected.

5. OTHER ELEMENTS

• Implementation plans and monitoring, evaluation and reporting arrangements

The implementation of the initiative will be based on an updated strategic research and innovation agenda agreed between the Commission and Participating States.

PRIMA’s performance will be monitored through annual reports submitted by the PRIMA-IS to the European Commission for approval. This will include reporting progress on the key performance indicators and other metrics set out in the strategic research and innovation agenda.

The proposal foresees an additional interim evaluation not later than 2025 and a final evaluation not later than 2030.

• Detailed explanation of the specific provisions of the proposal

Article 1 amends the Decision 2017/1324 and adapts it to the new regulatory framework set by the Horizon Europe Regulation (EU) 2021/695 and the Financial Regulation 2018/1046.

Article 1 i provides for amendment of the international agreements with the five Participating States that are not associated to Horizon Europe programme.

Article 1(3) provides for additional Union financial contribution from the Horizon Europe programme and specifies from which budget line of the Horizon Europe Programme the Union financial contribution will be provided.

Article 1(5) specifies the minimum financial contribution of the Participating States and extends the duration to which such contribution is committed, i.e. until 31 December 2031.

Articles 1(6) extends the active period of PRIMA operation until 2027.

Articles 1(12) introduces new provisions related to access to results and information on proposals.

Article 1(14) introduces new provisions related to monitoring and evaluation.

Article 1(15) introduces new provisions related to confidentiality, conflicts of interest, and ongoing actions, activities and commitments.