Annexes 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 - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2023)359 - Amendment of Decision (EU) 2017/1324 as regards the continuation of the Union’s participation in the Partnership for ... |
|---|---|
| document | COM(2023)359 |
| date | April 11, 2024 |
As the new Union’s financial contribution comes from a different programme the PRIMA basic act has to be adapted to the new regulatory framework. This initiative will amend the Decision 2017/1324 in particular to adapt it to the Regulation (EU) 2021/695 and Regulation (EU, Euratom) 2018/1046. The new regulatory framework has to be reflected also in the international agreements with 5 Participating States that are not Member States nor associated to Horizon Europe (Algeria, Egypt, Jordan, Lebanon and Morocco).
Adoption of the Decision amending the PRIMA basic act is expected in 2024. Consequently, a new Financial Framework Agreement and a contribution agreement will be concluded with the existing PRIMA dedicated implementing structure (PRIMA-IS). The Union contribution will be implemented in three annual commitments based on PRIMA Annual Work Programmes in 2025, 2026 and 2027.
The period for implementation of indirect actions will be extended to 2031.
1.4.2. Added value of Union involvement (it may result from different factors, e.g. coordination gains, legal certainty, greater effectiveness or complementarities). For the purposes of this point 'added value of Union involvement' is the value resulting from Union intervention, which is additional to the value that would have been otherwise created by Member States alone.
PRIMA Article 185 partnership is expected to have impacts in terms of excellent collaborative R&I activities, focusing and alignment of national R&I systems and science diplomacy. The institutional format and the participation of the EU in the partnership achieve the impacts that would not be possible to achieve through other forms of collaboration at national level and non-institutionalised format.
PRIMA has demonstrated a significant financial leverage impact, influenced national R&I strategies so they are aligned and complementary to PRIMA’s strategic R&I agenda and triggered a reform of R&I funding procedures in the Participating States where national funding procedures hampered scientific collaboration. The institutionalised format has enabled participation of non-associated countries on the equal footing with other Participating States, which would not be possible in non-institutionalised partnerships and without EU participation.
The EU added value was confirmed by the interim evaluation report conducted in 2022 by external evaluators.
1.4.3. Lessons learned from similar experiences in the past
The PRIMA partnership demonstrated during the first years of its operation that it is an effective instrument for international scientific collaboration and science diplomacy. The interim evaluation report concluded it is achieving its objectives and delivers a significant EU added value. Many Participating States, both EU Member States and non-EU countries consider PRIMA as a model for R&I collaboration that could be applied in other thematic areas in the future, as expressed in the UfM ministerial meeting in 2022, in letters to the Commission and statements in the Competitiveness Council meeting in December 2022.
1.4.4. Compatibility and possible synergy with other appropriate instruments
At strategic level PRIMA partnership is compatible with EU policy priorities, notable the Green Deal, Climate Adaptation Strategy, Farm to Fork Startegy, Bioeconomy Strategy, Circular Economy Action Plan, CAP and Water policies.
At programing level the PRIMA Annual Work Plans are well cordinated with other relevant R&I instruments such as the Soil Mission, the Climate Adaptation mission or the Water for All partnership. PRIMA is complementary to the Mediterranean Initiative in the Horzion Europe Work Programme 2023-2024.
In the period of extension 2025-2027 the PRIMA programming documents will be cooordinated with the existing insturments and initiatives as well as with the relevant new initiatives stemming from the Horizon Europe Strategic Plan 2025-2027.
1.5. Duration and financial impact
limited duration
- in effect from [01/01]2025 to [31/12]2031
- Financial impact from 2025 to 2027 for commitment appropriations and from 2025 to 2031 for payment appropriations.
unlimited duration
- Implementation with a start-up period from YYYY to YYYY,
- followed by full-scale operation.
1.6. Management mode(s) planned29
Direct management by the Commission
by its departments, including by its staff in the Union delegations;
by the executive agencies
Shared management with the Member States
Indirect management by entrusting budget implementation tasks to:
third countries or the bodies they have designated;
international organisations and their agencies (to be specified);
the EIB and the European Investment Fund;
bodies referred to in Articles 70 and 71 of the Financial Regulation;
public law bodies;
bodies governed by private law with a public service mission to the extent that they provide adequate financial guarantees;
bodies governed by the private law of a Member State that are entrusted with the implementation of a public-private partnership and that provide adequate financial guarantees;
persons entrusted with the implementation of specific actions in the CFSP pursuant to Title V of the TEU, and identified in the relevant basic act.
If more than one management mode is indicated, please provide details in the ‘Comments’ section.
Comments
PRIMA dedicated implementing structure (PRIMA-IS) is a foundation under Spanish law governed by the Board of Trustees representing the Participating States. The European Commission is an observer in the Board of Trustees.
The Union’s financial contribution to the initiative will be provided through the PRIMA-IS. The Participating States provided individual financial guarantees through which they collectively accept financial liability for any financial loss to the EU up the level of Union financial contribution. These financial guarantees will be renewed by the Participating States for the period 2025-2027 after the adoption of the amended PRIMA basic act.
2. MANAGEMENT MEASURES
2.1. Monitoring and reporting rules
The amended PRIMA basic act will align the monitoring and reporting rules to the requirements of Regulation (EU) 2021/695 and Regulation (EU, Euratom) 2018/1046.
PRIMA-IS will report on activities and fulfilment of obligations of the Participating States on annual basis.
The Commission will carry out an additional interim evaluation in 2025 and the final evaluation in 2030. The results of these evaluations will be presented to the European Parliament and the Council.
2.2. Management and control system(s)
2.2.1. Justification of the management mode(s), the funding implementation mechanism(s), the payment modalities and the control strategy proposed
The PRIMA partnership in the period of extension 2025-2027 will continue to be implemented in indirect management mode. This is justified as a implementation mode for public-public partnerships with financial and in kind contributions from Participating States.
The PRIMA budget will be implemented by the existing PRIMA-IS. Before the new Transfer of Funds Agreement are concluded the Commission will verify if the PRIMA-IS continues to meet the requirements of Regulation (EU, Euratom) 2018/1046 concerning financial management and internal control framework and what changes need to be implemented to the existing Delegation Agreement.
Annual budgets will be implemented through Annual Work Plans that will be scrutinised and approved by the Commission.
The Commission will ensure that the rules applicable to PRIMA fully comply with the requirements of the Financial Regulation.
Monitoring arrangements, including through the Union supervision into the governance of the Partnership, as well as reporting arrangements will ensure that the Commission services can meet the accountability requirements both to the College and to the Budgetary Authority.
The internal control framework for PRIMA-IS for the implementation of the PRIMA is built on:
• the implementation of the Internal Control Standards offering at least equivalent guarantees to those of the Commission;
• procedures for selecting the best projects through independent evaluation and conclusion of grant agreements;
• project and contract management throughout the lifetime of every project;
• ex-ante checks of claims, including receipt of audit certificates and ex-ante certification of cost methodologies;
• ex-post audits on a sample of claims as part of the Horizon Europe ex-post audits;
• scientific evaluation of project results
2.2.2. Information concerning the risks identified and the internal control system(s) set up to mitigate them
(1) Capacity of the dedicated implementation structure PRIMA-IS to manage the Union’s budget and to protect the EU’s financial interests.
The control method will be in line with the requirements as laid out in the EU financial regulations, and in particular that the Commission retains the right to terminate, reduce or suspend its contribution if the implementation is not acceptable or appropriate.
(2) Capacity of participating states to finance their contributions to the programme.
EU funds can only be released upon evidence of national annual financial commitments and appropriate level of payments towards national participants in the projects. Another safeguard is that EU funding cannot exceed 50% of the total public funding provided in the programme.
2.2.3. Estimation and justification of the cost-effectiveness of the controls (ratio of "control costs ÷ value of the related funds managed"), and assessment of the expected levels of risk of error (at payment & at closure)
As the rules for participation of Horizon Europe applicable to PRIMA are similar to those that the Commission will use in its Work Programme, it can be expected that the error margin will be similar to that foreseen by the Commission for Horizon Europe, i.e. to give reasonable assurance that the risk of error over the course of the multiannual expenditure period is, on an annual basis, within a range of 2-5%.
See the Legislative Financial Statement for Horizon Europe for full details of the error rate expected with respect to participants.
2.3. Measures to prevent fraud and irregularities
Specify existing or envisaged prevention and protection measures, e.g. from the Anti-Fraud Strategy.
The Commission will ensure that procedures to fight against fraud at all stages of the management process are applied by the PRIMA-IS.
The proposals for Horizon Europe have been subject to fraud proofing and an assessment of their impact. Overall, the measures proposed should have a positive impact on the fight against fraud, especially the greater emphasis on risk-based audit and reinforced scientific evaluation and control.
The Commission will ensure that appropriate measures are in place to guarantee 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, proportionate and deterrent penalties.
The Court of Auditors shall have the power of audit, on the basis of documents and on-the-spot, over all grant beneficiaries, contractors and subcontractors who have received Union funds under the Programme.
The European Anti-Fraud Office (OLAF) may 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 Regulation
3. ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE
3.1. Heading of the multiannual financial framework and new expenditure budget line(s) proposed
| Heading of multiannual financial framework | Budget line | Type of expenditure | Contribution | |||
| Heading 1 Single Market, Innovation and Digital – Horizon Europe | Diff./Non-diff.30 | from EFTA countries31 | from candidate countries32 | from third countries | within the meaning of Article [21(2)(b)] of the Financial Regulation | |
| 1 | 01 02 02 60 – cluster (vi) Food, Bioeconomy, Natural Resources, Agriculture and Environment | Diff. | YES | YES | YES | YES |
3.2. Estimated impact on expenditure
3.2.1. Summary of estimated impact on expenditure
EUR million (to three decimal places)
| Heading of multiannual financial framework | 1 | Single Market, Innovation and Digital – Horizon Europe - Cluster (vi) Food, Bioeconomy, Natural Resources, Agriculture and Environment |
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Post 2027 | TOTAL | |||
| Operational appropriations (split according to the budget lines listed under 3.1) | Commitments33 | (1) | 34.100 | 34.100 | 36.800 | 0 | 105.000 | ||||
| Payments34 | (2) | 1.200 | 20.940 | 20.940 | 61.920 | 105.000 | |||||
| Appropriations of an administrative nature financed from the envelope of the programme35 | Commitments = Payments | (3) | 0.147 | 0.097 | 0.097 | 0 | 0.341 | ||||
| TOTAL appropriations for the envelope of the programme | Commitments | =1+3 | 32.247 | 34.197 | 36.897 | 0 | 105.341 | ||||
| Payments | =2+3 | 1.347 | 21.037 | 21.037 | 61.920 | 105.341 |
| Heading of multiannual financial framework | 7 | ‘Administrative expenditure’ |
EUR million (to three decimal places)
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Post 2027 | TOTAL | ||
| Human resources | - | - | - | - | ||||||
| Other administrative expenditure | - | - | - | - | ||||||
| TOTAL appropriations under HEADING 7 of the multiannual financial framework | (Total commitments = Total payments) | - | - | - | - |
EUR million (to three decimal places)
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Post 2027 | TOTAL | |||
| TOTAL appropriations across HEADINGS of the multiannual financial framework | Commitments | 34.250 | 34.201 | 36.902 | 0 | 105.353 | |||||
| Payments | 1.350 | 21.041 | 21.042 | 61.920 | 105.353 |
3.2.2. Summary of estimated impact on appropriations of an administrative nature
- The proposal/initiative does not require the use of appropriations of an administrative nature
- The proposal/initiative requires the use of appropriations of an administrative nature, as explained below:
EUR million (to three decimal places)
| Years | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | TOTAL |
| HEADING 7 of the multiannual financial framework | ||||||||
| Human resources | ||||||||
| Other administrative expenditure | ||||||||
| Subtotal HEADING 7 of the multiannual financial framework |
| Outside HEADING 736 of the multiannual financial framework | ||||||||
| Human resources | 0.091 | 0.091 | 0.091 | 0.273 | ||||
| Other expenditure of an administrative nature | 0.056 | 0.006 | 0.006 | 0.068 | ||||
| Subtotal outside HEADING 7 of the multiannual financial framework | 0.147 | 0.097 | 0.097 | 0.341 |
| TOTAL | 0.147 | 0.097 | 0.097 | 0.341 |
The appropriations required for human resources and other expenditure of an administrative nature will be met by appropriations from the DG that are already assigned to management of the action and/or have been redeployed within the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints.
3.2.2.1. Estimated requirements of human resources
- The proposal/initiative does not require the use of human resources.
- The proposal/initiative requires the use of human resources, as explained below37
Estimate to be expressed in full time equivalent units
| Years | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | |
| □ Establishment plan posts (officials and temporary staff) | ||||||||
| Headquarters and Commission’s Representation Offices | ||||||||
| Delegations | - | - | - | - | - | - | - | |
| Research | - | - | - | - | - | - | - | |
| □ External staff (in Full Time Equivalent unit: FTE) - AC, AL, END, INT and JED 38 Heading 7 | ||||||||
| Financed from HEADING 7 of the multiannual financial framework | - at Headquarters | - | - | - | - | - | - | - |
| - in Delegations | - | - | - | - | - | - | - | |
| Financed from the envelope of the programme 39 | - at Headquarters | - | - | - | - | |||
| - in Delegations | - | - | - | - | - | - | - | |
| Research | - | - | - | - | 1 | 1 | 1 | |
| Other (specify) | - | - | - | - | - | - | - | |
| TOTAL | - | - | - | - | 1 | 1 | 1 |
The human resources required will be met by staff from the DG who are already assigned to management of the action and/or have been redeployed within the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints.
Description of tasks to be carried out:
| Officials and temporary staff | n/a |
| External staff | Policy Officer for programme supervision and policy guidance and evaluation/governance administrative tasks and responsibilities for the Commission. To represent European Commission in all decision bodies of the Partnership (Board if Trustees of PRIMA-IS) and ensure compliance with Basic Act and EU policies. |
3.2.3. Third-party contributions
The proposal/initiative:
- does not provide for co-financing by third parties
- provides for the co-financing by third parties estimated below:
Appropriations in EUR million (to three decimal places)
| Years | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | TOTAL |
| Participating States | 35.000 | 35.000 | 35.000 | 105.000 | ||||
| TOTAL appropriations co-financed | 35.000 | 35.000 | 35.000 | 105.000 |
3.3. Estimated impact on revenue
- The proposal/initiative has no financial impact on revenue.
- The proposal/initiative has the following financial impact:
- on own resources
- on other revenue
please indicate, if the revenue is assigned to expenditure lines ◻
EUR million (to three decimal places)
| Budget revenue line: | Impact of the proposal/initiative40 | ||||||
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | |
| Article …………. |
For assigned revenue, specify the budget expenditure line(s) affected.
Other remarks (e.g. method/formula used for calculating the impact on revenue or any other information).
1Decision (EU) 2017/1324 of the European Parliament and of the Council of 4 July 2017 on the participation of the Union in the Partnership for Research and Innovation in the Mediterranean Area (PRIMA) jointly undertaken by several Member States, (OJ L 185, 18.7.2017, p. 1)
2Interim Evaluation of the Partnership for Research and Innovation in the Mediterranean Area (PRIMA)
COM(2023) 285 final
3https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal_en
4Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions A Farm to Fork Strategy for a fair, healthy and environmentally friendly food system, COM/2020/381 final
5Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions Forging a climate-resilient Europe - the new EU Strategy on Adaptation to Climate Change, COM/2021/82 final
6Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions Pathway to a Healthy Planet for All EU Action Plan: 'Towards Zero Pollution for Air, Water and Soil', COM/2021/400 final
7A sustainable Bioeconomy for Europe: Strengthening the connection between economy, society and the environment, COM(2018) 673 final
8EU Missions in Horizon Europe (europa.eu)
9Regulation (EU) 2021/695 of the European Parliament and of the Council of 28 April 2021 establishing Horizon Europe – the Framework Programme for Research and Innovation, laying down its rules for participation and dissemination, and repealing Regulations (EU) No 1290/2013 and (EU) No 1291/2013
10UfM-Ministerial-Declaration-RI-EN-270622.pdf (ufmsecretariat.org)
11Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000 establishing a framework for Community action in the field of water policy, OJ L 327 , 22/12/2000
12Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions - A new Circular Economy Action Plan For a cleaner and more competitive Europe, COM/2020/98 final
13joint_communication_renewed_partnership_southern_neighbourhood.pdf (europa.eu)
14Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on the Global Approach to Research and Innovation Europe's strategy for international cooperation in a changing world, COM/2021/252 final
15European Partnerships in Horizon Europe (europa.eu)
16Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (OJ L 193, 30.7.2018, pp. 1-222)
17Interim Evaluation of the Partnership for Research and Innovation in the Mediterranean Area (PRIMA), COM(2023) 285 final
18Opinion of the European Economic and Social Committee on the ‘Proposal for a Decision of the European Parliament and of the Council on the participation of the Union in the Partnership for Research and Innovation in the Mediterranean Area (PRIMA) jointly undertaken by several Member States’(COM(2016) 662 final — 2016/0325 (COD), C 125, 21.4.2017, p. 80.
19Decision (EU) 2017/1324 of the European Parliament and of the Council of 4 July 2017 on the participation of the Union in the Partnership for Research and Innovation in the Mediterranean Area (PRIMA) jointly undertaken by several Member States (OJ L 185, 18.7.2017, p. 1).
20COM(2023) 285final
21Council Decision (EU) 2021/764 of 10 May 2021 establishing the Specific Programme implementing Horizon Europe – the Framework Programme for Research and Innovation, and repealing Decision 2013/743/EU (OJ L 167I, 12.5.2021, p. 1).
22Regulation (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) and repealing Decision No 1982/2006/EC Text with EEA relevance (OJ L 347, 20.12.2013, p. 104)
23Regulation (EU) 2021/695 of the European Parliament and of the Council of 28 April 2021 establishing Horizon Europe – the Framework Programme for Research and Innovation, laying down its rules for participation and dissemination, and repealing Regulations (EU) No 1290/2013 and (EU) No 1291/2013 (OJ L 170, 12.5.2021, p. 1)
24Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (OJ L 193, 30.7.2018, p. 1).
2525 Regulation (EU) 2021/695 of the European Parliament and of the Council of 28 April 2021 establishing Horizon Europe – the Framework Programme for Research and Innovation, laying down its rules for participation and dissemination, and repealing Regulations (EU) No 1290/2013 and (EU) No 1291/2013 (OJ L 170, 12.5.2021, p. 1)
26Council Decision (EU) 2021/764 of 10 May 2021 establishing the Specific Programme implementing Horizon Europe – the Framework Programme for Research and Innovation, and repealing Decision 2013/743/EU (OJ L 167I, 12.5.2021, p. 1).
27Council Regulation (EU) 2017/1939 of 12 October 2017 implementing enhanced cooperation on the establishment of the European Public Prosecutor’s Office (‘the EPPO’)(OJ L 283, 31.10.2017, p. 1)
28As referred to in Article 58(2)(a) or (b) of the Financial Regulation.
29Details of management modes and references to the Financial Regulation may be found on the BudgWeb site: https://myintracomm.ec.europa.eu/budgweb/EN/man/budgmanag/Pages/budgmanag.aspx
30Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations.
31EFTA: European Free Trade Association.
32Candidate countries and, where applicable, potential candidates from the Western Balkans.
33Commitments for years 2025 and 2026 include each EUR 1.2M for PRIMA administrative costs. Commitments for year 2027 include EUR 1.2M for 2027 and EUR 2.7M for Post 2027 PRIMA administrative costs.
34Payments for years 2026 and 2027 include each EUR 1.2M for PRIMA administrative costs. Payments in Post 2027 include EUR 2.7M for Post 2027 PRIMA administrative costs.
35Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research. Covering the administration of the Horizon Europe actions. The FTE costs are determined on the basis of the average yearly cost to be used as from 2023 for salaries for Contractual Staff (EUR 0.091) including other administrative costs (EUR 0.029) referred to buildings and IT costs for Indirect Research staff. The indication of staff needs in the Commission DGs is as well of indicative and non-binding nature.
36Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research.
37The indication of staff needs in the Commission DGs is as well of indicative and non-binding nature.
38AC= Contract Staff; AL = Local Staff; END = Seconded National Expert; INT = agency staff; JPD= Junior Professionals in Delegations.
39Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines).
40As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net amounts, i.e. gross amounts after deduction of 20 % for collection costs.
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