European Parliament legislative resolution of 26 September 2007 on the proposal for a regulation of the European Parliament and of the Council establishing the European Institute of Technology (COM(2006)0604 – C6-0355/2006 – 2006/0197(COD))
(Codecision procedure: first reading)
The European Parliament,
– having regard to the Commission proposal to the European Parliament and the Council (COM(2006)0604),
– having regard to Articles 251(2) and 157(3) of the EC Treaty, pursuant to which the Commission submitted the proposal to Parliament (C6-0355/2006),
– having regard to Rule 51 of its Rules of Procedure,
– having regard to the report of the Committee on Industry, Research and Energy and the opinions of the Committee on Culture and Education, the Committee on Budgets, the Committee on Budgetary Control and the Committee on Legal Affairs (A6-0293/2007),
1. Approves the Commission proposal as amended;
2. Considers that the compatibility of the Commission proposal with the ceilings of the multiannual financial framework is not ensured;
3. Calls on the Council to enter into negotiations with the Parliament on the financing of both the European Institute of Technology (EIT), in accordance with point 47 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management (IIA)(1) and the financing of the Knowledge and Innovation Communities, using all possibilities offered by the IIA;
4. Recalls that the position does not pre-empt the outcome of the procedure laid down in point 47 of the IIA which applies to the setting up of the EIT;
5. Calls on the Commission to refer the matter to Parliament again if it intends to amend the proposal substantially or replace it with another text;
6. Instructs its President to forward its position to the Council and Commission.
Position of the European Parliament adopted at first reading on 26 September 2007 with a view to the adoption of Regulation (EC) No .../2007 of the European Parliament and of the Council establishing the European Institute of Innovation and Technology
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and in particular Article 157(3) thereof,
Having regard to the proposal from the Commission║,
Having regard to the opinion of the European Economic and Social Committee(1),
Having regard to the opinion of the Committee of the Regions(2),
Acting in accordance with the procedure laid down in Article 251 of the Treaty(3),
Whereas:
(1) The Lisbon Growth and Jobs Agenda underscores the need to develop conditions which are attractive to investment in knowledge and innovation in Europe to boost competitiveness, growth and jobs in the European Union.
(2) Member States are primarily responsible for sustaining a strong European industrial, competitive and innovative base. However, the nature and scale of the innovation challenge in the European Union also requires ║ action to be taken at Community level.
(3) The Community should provide support to foster innovation, in particular through the Seventh Framework Programme for Research, Technological Development and Demonstration Activities, the Competitiveness and Innovation Framework Programme, the ║ Lifelong Learning Programme and the Structural Funds.
(4) A new initiative at Community level hereafter referred to as "the European Institute of Innovation and Technology (the EIT)" should be established as a complement to existing Community and national policies and initiatives by fostering the integration of the knowledge triangle − innovation, research and education − across the European Union, thereby facilitating cooperation and exchange and creating synergies between centres of excellence and small and medium-sized enterprises (SMEs) in particular.
(5) The Brussels European Council of 15 and 16 June 2006 invited the Commission to prepare a formal proposal for the establishment of the EIT to be presented in autumn 2006.
(6) The EIT should mainly have the objective of contributing to the development of the Community and the Member States innovation capacity, by █involving education, research and innovation activities at high standards of excellence, aiming at facilitating and enhancing networking and cooperation and creating synergies between innovation communities in Europe.
(7)In order to strengthen effectively the ties and links between innovation, research and higher education, the transfer of these three components to the industrial context and their application must be given priority and made the main focus of the actions of the EIT.
(8) Through its Governing Board, the EIT should identify strategic long-term challenges for innovation in Europe, particularly in trans- and/or inter-disciplinary areas including those already identified at European level in the strategic research agendas of the European technology platforms and joint technology initiatives as well as the near-market cluster projects of the intergovernmental EUREKA initiative, and should provide a transparent and excellence-based selection process for Knowledge and Innovation Communities (hereinafter referred to as "KICs") in these fields. Membership of the Governing Board of the EIT should balance experience from the business and the research/academic worlds.
(9)Academic and business freedom should be secured for the EIT and the KICs so that they can develop their own entrepreneurial and innovative culture.
(10)A pilot phase, with a limited number of KICs, is needed in order to properly evaluate the functioning of the EIT and the KICs and where necessary introduce improvements. During this pilot phase, the Governing Board of the EIT should select KICs in areas that help the European Union to face today's challenges and those of tomorrow, such as climate change, sustainable mobility, energy efficiency or the next generation of information and communication technologies.
(11) In order to contribute to the competitiveness and to reinforce the international attractiveness of the European economy and to make European innovation capacity more visible, the EIT should be able to attract partner organisations, researchers and students from all over the world and to cooperate with third-country organisations by encouraging mobility for researchers and students.
(12)Since the EIT is intended to be a flagship for European innovation and research, it should be located near existing centres of European excellence and academic reputation in order to best benefit from existing infrastructure.
(13)In order to increase its attractiveness, the EIT, together with partner institutions, should create an appropriate structure allowing students and graduates to obtain an apprenticeship and/or recruitment in leading partner organisations within KICs.
(14) The EIT should primarily operate through excellence-driven long-term strategic partnerships on an inter- and/or trans-disciplinary basis of key potential economic and societal interest for Europe. These partnerships should be selected by the EIT Governing Board and designated as KICs. While they should be legally autonomous, the relations between the EIT and the KICs should be based on contractual agreements which ║ set out the ║ rights and obligations of the KICs, ensure an adequate level of coordination and outline the mechanism for monitoring and evaluation of the KICs activities and outcomes.
(15) There is a need to support education as an integral but often missing component of a comprehensive innovation strategy. The agreement between the EIT and KICs should provide that the qualifications awarded bythe higher education institutions which are partner organisations of the KICs should bear the EIT mark. The EIT should promote the recognition of EIT qualifications bearing its mark of excellence in the Member States and outside the European Union. All these activities should be carried out without prejudice to Directive 2005/36/EC of the European Parliament and of the Council of 7 September 2005 on the recognition of professional qualifications(4).
(16) The EIT should establish clear and transparent guidelines for the management of intellectual and industrial property, which should take due account of the contributions made by the various partner organisations of the KICs and foster the use of intellectual and industrial property under appropriate conditions, including through licensing and should provide appropriate incentives for the EIT and partners, including individuals involved, KICs and partner organisations as well as for spin-offs and for commercial exploitation. Where activities are funded under the Community Framework Programmes for Research and Technological Development, the rules of those programmes should apply.
(17)In order to guarantee structured cooperation and regular exchanges of views, the EIT should ensure periodic dialogue between the KICs and civil society.
(18) Appropriate provisions guaranteeing the liability, autonomy and transparency of the EIT █should be adopted in its statutes║.
(19) In order to guarantee the functional autonomy and independence of the EIT, it should possess legal personality and administer its own budget whose revenue should include a contribution from the Community as well as contributions from Member States and private organisations, national or international bodies or institutions, revenues generated by the EIT's own activities in connection with intellectual and industrial property management or endowments. The EIT should seek to attract an increasing financial contribution from private organisations.
(20) The Community budgetary procedure should be applicable as far as the Community subsidy and any other grants chargeable to the general budget of the European Union are concerned.
(21) This Regulation establishes a financial framework for the period 2008 to 2013. However, by virtue of point 14 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management (IIA)(5), no act adopted under the codecision procedure by the European Parliament and the Council nor any act adopted by the Council which involves exceeding the appropriations available in the general budget of the European Union or the allocations available in the financial framework should be implemented in financial terms until the general budget of the European Union has been amended and, if necessary, the financial framework has been appropriately revised in accordance with the relevant procedure for each of these cases.
(22) The EIT is a body set up by the Communities within the meaning of Article 185(1) of Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities(6) (hereinafter referred to as "the ║Financial Regulation")and point 47 of the IIA, and should adopt appropriate financial rules accordingly.
(23) The Governing Board of the EIT should adopt a rolling triennial work programme that should be examined by the Commission, with regard to its complementarity with Community policies and instruments, and an annual report, including a full statement of accounts, which should be transmitted to the Commission,█ the European Parliament, the Council and the Court of Auditors.
(24) It is appropriate that the European Parliament, the Council and the Commission should be entitled to address an opinion on the EIT work programme and its annual report, including the statement of accounts.
(25)Since the establishment of the EIT is a new initiative, the effects of which are uncertain and difficult to predict, the Commission should extensively and regularly review the operation and effects of the EIT, taking into account alternative design options for the EIT and, where necessary, make proposals for the amendment of this Regulation.
(26)Since the proposal for the establishment of the EIT was submitted after the adoption of the multiannual financial framework and the Community multiannual programmes in the fields of education, research and innovation under the codecision procedure, funds allocated to such Community programmes should not be used to finance the EIT, and all possibilities offered by the IIA should be explored.
(27) Since the objectives of the proposed action cannot be sufficiently achieved by the Member States acting alone, and can therefore, by reason of scale and of trans-nationality, be better achieved at Community level, the Community may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives,
HAVE ADOPTED THIS REGULATION:
Article 1
Subject matter
A European Institute of Innovation and Technology (hereinafter referred to as "the EIT"), is hereby established. The EIT is a body within the meaning of Article 185 of the Financial Regulation and point 47 of the IIA.
Article 2
Definitions
For the purpose of this Regulation, the following definitions shall apply:
1.
"Innovation" means the process and the outcomes of the process through which new ideas respond to societal or economic demand and generate new products, services, or organisational models that are successfully introduced in an existing market or that are able to create new markets.
2.
"Knowledge and Innovation Community ("KIC")" means a legally autonomous partnership between higher education institutions, research organisations, companies and other stakeholders in the innovation process in the form of a strategic network with a common mid to long-term innovation plan designed to achieve the EIT´s objective.
3."Participating State" means a Member State or any country having an agreement with the Community in relation to the EIT.
4.
"Higher education institution" means any type of █institution which offers recognised degrees or other recognised tertiary level qualifications, irrespective of its denomination in the national context.
5.
"Research organisation" means any public or private legal entity which undertakes research or technological development as one of its main objectives.
6.
"Partner organisation" means any organisation which is member of a KIC and may include in particular: higher education institutions, research organisations, public or private companies, financial institutions, regional and local authorities, foundations.
7.
"Partnership" means a group of potential partner organisations who have come together to be a candidate for a KIC.
8.
"Qualifications" means diplomas, degrees and other awards awarded by participating higher education institutions on completion of higher education activities.
Article 3
Objective
The objective of the EIT is to enhance European competitiveness and contribute to sustainable economic growth by reinforcing the innovation capacity of Member States and the Community. It shall do this by promoting and coordinating innovation, research and higher education at the highest levels.
Article 4
Tasks
1. In order to achieve its objective, the EIT shall:
█
a)
identify its priority areas;
b)
raise awareness among potential partner organisations and promote their participation in its activities;
c)
select and designate KICs in the priority areas, provide them with appropriate support, apply appropriate quality control measures, continuously monitor and periodically evaluate their activities ║ and ensure an appropriate level of coordination between them;
d)
mobilise the necessary funds from public and private sources and use its resources in accordance with this Regulation; it shall in particular seek to raise a significant and increasing proportion of its budget from private sources and from income generated by its own activities;
e)
encourage the recognition of qualifications awarded by higher education institutions which are partner organisations in a KIC and bear the EIT mark in the Member States;
f)
promote the dissemination of good practices for the integration of innovation, higher education and research in order to develop a common culture of innovation with a high level of knowledge transfer;
g)
seek to become a world class body for excellence in innovation, higher education and research;
h)
ensure complementarity and synergy between EIT activities and other Community programmes;
i)
complement existing national and regional policies, instruments and networks in the field of innovation, research and higher education in Europe.
2. The EIT shall have power to establish a Foundation (hereinafter referred to as "the EIT Foundation") █ with the specific objective of promoting and supporting the activities of the EIT.
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Article 5
The Knowledge and Innovation Communities
1. KICs shall undertake in particular:
a)
innovation and investment activities of an appropriate scale that offer European added value and have research and higher education dimensions, stimulating the dissemination and exploitation of results;
b)
cutting-edge technological and innovation-driven research in areas of key economic and societal interest, drawing on the results of European and national research, with the aim of strengthening Europe's competitiveness at international level;
c)
education and training activities at master and doctoral level, as referred to in Article 8, in disciplines that will meet future European economic needs and which promote the development of innovation related skills, the improvement of managerial and entrepreneurial skills and the mobility of researchers;
d)
the dissemination of best practices █in the innovation sector with a focus on the development of co-operation █ between higher education, research and business.
2. KICs shall have substantial overall autonomy to define their internal organisation and composition, as well as their precise plan of activities and working methods.
3. KICs shall aim to be open to new partner organisations, wherever they can add value to the partnership.
4.KICs shall be legally independent from the EIT. The relationship between the EIT and each KIC shall be governed by contractual agreement.
5.Each KIC shall submit a business plan to the Governing Board of the EIT for approval.
6.A KIC may include partner organisations from third countries that can make a positive contribution to its objective║.
Article 6
Selection of KICs
1.A partnership shall be selected and designated by the EIT to become a KIC on the basis of a competitive, open and transparent procedure. Detailed criteria for the selection of KICs, which shall be based on the principles of excellence and innovation capacity, shall be adopted and published by the EIT, and external and independent experts shall be involved in the selection procedure.
2.In accordance with the criterion of excellence mentioned in paragraph 1, in the selection of a KIC particular account shall be taken of:
a)
current and potential innovation capacity within the partnership as well as its potential excellence in innovation, higher education and research, and in particular its ability to include these elements in its activities;
b)
the partnership's capacity to achieve the goals set out in the Strategic Innovation Agenda, as set out in Article 28;
c)
the partnership's capacity to secure sustainable, long-term funding, including substantial financial commitments from the private sector;
d)
the participation in the partnership of partner organisations active in research, higher education and innovation, including at least one higher education institution and one private company;
e)
where appropriate, the existence of a plan for the management of intellectual and industrial property appropriate to the sector concerned and consistent with the EIT principles and guidelines for the management of intellectual and industrial property;
f)
the involvement of and cooperation with the private sector, and in particular SMEs and the financial sector;
g)
measures to support the creation of start-ups and spin-offs;
h)
the partnership's capacity to interact with other organisations and networks outside the KIC with the aim of sharing good practices and excellence.
3.In accordance with the criterion of excellence mentioned in paragraph 1, each KIC shall have at least three partner organisations, situated in at least two different participating States, each of which shall be independent of the others within the meaning of Article 6 of Regulation (EC) No 1906/2006 of the European Parliament and of the Council of 18 December 2006 laying down the rules for the participation of undertakings, research centres and universities in actions under the Seventh Framework Programme and for the dissemination of research results (2007-2013)(7).
4.A KIC may include partner organisations not established in a participating State, subject to the approval of the Governing Board of the EIT.
Article 7
Pilot phase
1.No later than ... (8), the EIT shall select and designate two or three KICs in accordance with the provisions of Article 6.
2.The EIT may select additional KICs after the adoption of its first Strategic Innovation Agenda, in accordance with Article 28.
Article 8
Qualifications
1. The agreement between the EIT and the KICs shall provide that, in the disciplines and areasin which higher education, research and innovation activities are carried out through KICs, qualifications awarded through KICs shall bear theEITmark.
2. The EIT shall encourage ║ higher education institutions which are partners in a KIC to award joint qualifications reflecting the integrated nature of the KIC. However, these may also be qualifications awarded by one higher education institution as well as double or multiple qualifications.
3. The Member States shall cooperate in recognising the qualifications awarded by higher education institutions within KICs and bearing the EIT mark, without prejudice to Directive 2005/36/EC.
4.Partner organisations within a KIC shall contribute to policy on education and training in the disciplines and sectors covered in the EIT Governing Board's strategies.
Article 9
Mobility of researchers and students
1.Through its activities the EIT shall help to promote mobility within the European Higher Education Area pursuant to the agreements concluded under the Bologna Process.
2.The transferability of grants awarded for KIC activities, in particular grants awarded to researchers and students, shall be ensured.
Article 10
Independence of the EIT and consistency with Community, Member State or intergovernmental action
1. The EIT shall carry out its activities independently from national authorities and external pressures. █
2. The activities of the EIT and the KICs shall be consistent with other actionsand instruments at Community level, in particular in the fields of innovation, research and higher education.
3. The EIT shall also take appropriate account of policies and initiatives at regional, national and intergovernmental levels in order to make use of best practice, proven concepts and existing resources.
Article 11
The EIT bodies
1. The bodies of the EIT shall be:
a)
a Governing Board composed of high level members experienced in innovation, business, research and higher education; it shall be responsible for steering █the activities of the EIT, for the selection, designation and evaluation of KICs, and for all other strategic decisions;
b)
an Executive Committee which shall oversee the running of the EIT and take such decisions as are necessary between meetings of the Governing Board;
c)
a Director who shall be responsible to the Governing Board for the administrative and financial management of the EIT and shall be the legal representative of the EIT;
d)
where appropriate, an internal auditing unit which shall advise the Governing Board and the Director on financial and administrative management and control structures within the EIT, on the organisation of financial links with KICs, and on any other subject requested by the Governing Board.
2. The Commission may appoint observers to take part in the meetings of the Governing Board and the Executive █Committee.
Article 12
Composition of the Governing Board
1.The Governing Board shall consist both of appointed members with a balance between those with business experience, those with academic experience and those with research experience (hereafter "appointed members") and members elected by and from among the innovation, research, academic, technical and administrative staff, students and doctoral candidates of the EIT and the KICs (hereafter "representative members").
2.There shall be 21 appointed members in the Governing Board. They shall, except as provided for in paragraph 4, have a six-year non-renewable term of office. They shall be appointed by the Commission in accordance with a transparent procedure that shall include a report to the European Parliament and the Council on the selection process.
3.In appointing the appointed members of the Governing Board the Commission shall have regard to the balance between academic, research and business experience as well as to gender balance and shall consider innovation, research and education environments across the European Union.
4.One-third of the appointed members shall be replaced every two years. The members whose term of office is to expire after the second or fourth year following the initial nomination of the Governing Board shall be drawn by lot.
5.There shall be four representative members in the Governing Board. They shall have a three-year term of office, renewable once. Their term of office shall cease if they leave the EIT or a KIC and they shall be replaced under the same procedure for the remainder of the term of office of the outgoing member.
6.The conditions and modalities for the election and replacement of the representative members shall be approved by the Governing Board on the basis of a proposal from the Director before the first KIC is established. They shall ensure appropriate representation of the diversity of and shall take into account the evolution of the EIT and the KICs.
7.In the event that a member of the Governing Board is unable to complete his term of office, a substitute member shall be appointed or elected by the same procedure as was the outgoing member for the remainder of his term of office.
Article 13
Responsibilities of the Governing Board
1.The Governing Board members shall act in total independence in the interests of the EIT, safeguarding its goals and mission, identity and coherence.
2.The Governing Board shall, in particular:
a)
define the areas in which to establish the KICs;
b)
approve the EIT strategy as enshrined in its triennial rolling work programme;
c)
approve the EIT´s budget, annual accounts and balance-sheet and the annual activity report on the basis of a proposal from the Director;
d)
adopt rigorous, transparent and user-friendly procedures for the selection of KICs; these procedures shall include external expert evaluation and shall cover the relations between the EIT and the KICs;
e)
select and designate a partnership as a KIC or withdraw the designation if necessary;
f)
ensure continuing evaluation of the activities of KICs on the basis of clear criteria established in advance;
g)
adopt its rules of procedure, and those of the Executive Committee;
h)
define, with the Commission's agreement, appropriate honoraria for its members and the members of the Executive Committee; these honoraria shall be benchmarked against similar payments in the Member States;
i)
adopt a procedure for choosing the members of the Executive Committee, the members of the internal auditing unit, where appropriate and the Director;
j)
appoint and if necessary dismiss the Director, appoint the EIT´s accounting officer and the members of the Executive Committee and, where appropriate, the members of the internal auditing unit;
k)
exercise disciplinary authority over the Director;
l)
establish where appropriate advisory groups which may have a defined duration;
m)
promote the EIT globally, so as to raise its attractiveness and make it an "international player" for excellence in innovation, research and higher education;
n)
adopt a code of conduct regarding conflicts of interest;
o)
define principles and guidelines for the management of intellectual and industrial property rights;
p)
approve agreements relating to intellectual and industrial property rights concluded among the partner organisations within KICs;
q)
decide whether to set up an internal auditing unit in accordance with Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 on the framework Financial Regulation for the bodies referred to in Article 185 of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities(9).
3.The Governing Board may delegate specific tasks to the Executive Committee.
4.The Governing Board shall elect its Chairperson from among the appointed members. The term of office of the Chairperson shall be for a period of three years, renewable once.
Article 14
Functioning of the Governing Board
1.The Governing Board shall generally adopt decisions by simple majority of all its members.
However, decisions under Article 13(2) (a), (b), (c), (d), (e) and (j) and under Article 13(4) shall require a majority of two thirds of all its members.
2.The Governing Board shall meet in ordinary session at least three times a year, and in extraordinary session when convened by its Chairperson or at the request of at least one third of its members.
3.For a transitional period, the Governing Board shall consist exclusively of appointed members until elections for representative members can be held, after the first KIC has been established.
Article 15
The Executive Committee
1.The Executive Committee shall consist of five persons including the Chairperson of the Governing Board who shall also chair the Executive Committee.
The four members other than the Chairperson shall be chosen by the Governing Board from among its appointed members.
2.The Executive Committee shall meet on a regular basis when convened by its Chairperson or at the request of the Director.
3.The Executive Committee shall take its decisions by simple majority of all its members.
4.The Executive Committee shall:
a)
prepare the meetings of the Governing Board;
b)
oversee the implementation of the EIT's rolling triennial work programme;
c)
oversee the selection procedure for KICs;
d)
take any decisions delegated to it by the Governing Board.
Article 16
The Director
1.The Director shall be a person with expertise and high reputation in the fields in which the EIT operates. He/she shall be appointed by the Governing Board for a term of office of four years. The Governing Board may extend that term of office once by four years if it considers that the interests of the EIT are best served by so doing.
2.The Director shall be responsible for the day-to-day management of the EIT and shall be its legal representative. He/she shall be accountable to the Governing Board to which he/she will report on an ongoing basis on the progress of the EIT's activities.
3.The Director shall in particular:
a)
support the Governing Board and the Executive Committee in their work and provide the secretariat for their meetings;
b)
prepare the draft strategy and the EIT´s budget for submission to the Governing Board through the Executive Committee;
c)
administer the selection process for KICs and ensure that the various stages of that process are carried out in a transparent and objective manner;
d)
organise and manage the activities of the EIT;
e)
ensure the implementation of effective monitoring and evaluation procedures relating to the performance of the EIT in accordance with Article 29;
f)
be responsible for administrative and financial matters, including the implementation of the EIT's budget; in this connection the Director shall take due account of advice received from the internal auditing unit;
g)
be responsible for all staff matters;
h)
prepare the draft rolling triennial work programme and annual report on the EIT's activities and submit them to the Governing Board;
i)
submit the EIT´s draft annual accounts and balance sheet to the internal auditing unit, and subsequently to the Governing Board, through the Executive Committee;
j)
ensure that the obligations of the EIT with regard to the contracts and agreements it concludes are met;
k)
provide the Executive Committee and the Governing Board with all information necessary for the performance of their functions.
Article 17
Staff of the EIT
1.The staff of the EIT shall consist of personnel employed directly by the EIT under fixed term contracts. The conditions of employment of other servants of the European Communities shall apply to the Director and the staff of the EIT.
2.Experts may be seconded to the EIT for a limited duration by Member States or other employers.
The Governing Board shall adopt provisions enabling seconded experts from Member States or other employers to work at the EIT and defining their rights and responsibilities.
3.The EIT shall exercise, with regard to its staff, the powers which are devolved to the authority authorised to conclude contracts with the staff members.
4.A member of staff may be required to make good, in whole or in part, any damage suffered by the EIT as a result of serious misconduct on his/her part in the course of or in connection with the performance of his/her duties.
Article 18
Principles guiding the organisation and management of KICs
1.The Governing Board shall adopt a framework of guidance on which it shall base the conditions and terms of the agreements with KICs and on financing, monitoring and evaluating their activities. It shall be made public before the selection process for KICs begins.
2.The Governing Board shall in particular provide guidance on:
a)
monitoring and evaluating KICs and on the participation of the EIT in their governance;
b)
the integration of the business dimension into research and higher education activities, including the planning and implementation of educational activities and research and development efforts; staff and student/researcher mobility between the business and the academic/research sectors; the provision of educational content that takes into account business, management and innovation-related issues; the sharing of results and revenues arising from results of cooperation between partners; the dissemination of outcomes and good practices to non-partner organisations including SMEs;
c)
how to ensure that curricula and internal practices foster an entrepreneurial and innovation mindset.
3.Within the terms of their agreement with the EIT, KICs shall have substantial autonomy to define their internal organisation as well as their precise agenda and working methods.
Article 19
Principles for the evaluation and monitoring of the KICs
The EIT shall organise continuous monitoring and periodic independent evaluations of the outcomes and results of each KIC. These evaluations shall be based on good administrative practice and results-oriented parameters and avoid unnecessary formal and procedural aspects.
Article 20
Duration, continuation and termination of a KIC
1.Subject to the outcome of periodic evaluations and to the specificities of particular fields, a KIC shall normally have a duration of 7 to 15 years.
2.The Governing Board may exceptionally decide to extend the duration of a KIC beyond the period initially set if this is the most appropriate way to achieve the objective of the EIT.
3.In the event that evaluations of a KIC show inadequate results, the Governing Board shall take appropriate measures including reduction, modification or withdrawal of financial support to the KIC or termination of the agreement with the KIC.
Article 21
Winding up of the EIT
In the event of winding up of the EIT, its liquidation shall take place under the supervision of the Commission in accordance with applicable law. Agreements with the KICs and the act establishing the EIT Foundation shall lay down appropriate provisions to address such a situation.
Article 22
Management of intellectual and industrial property
1. The EIT shall adopt guidelines for the management of intellectual and industrial property rights based, inter alia, on the principles set out in Chapter II, Section 2 of Regulation (EC) No 1906/2006.
2. On the basis of these guidelines, the partner organisations of each KIC shall conclude among themselves an agreement on the management and use of intellectual and industrial property rights, which shall be subject to the approval of the Governing Board.
Article 23
Legal Status
1. The EIT shall have legal personality. In each of the Member State, it shall exercise the widest possible legal powers accorded to legal persons under national legislation. In particular, it may acquire or dispose of tangible or intangible assets and be a party to legal proceedings.
2. The Protocol on the Privileges and Immunities of the European Communities shall apply to the EIT.
Article 24
Liability
1. The EIT shall be solely responsible for meeting its obligations.
2. The contractual liability of the EIT shall be governed by the relevant contractual provisions and the law applicable to the contract in question.
Contracts entered into by the EIT shall provide that the Court of Justice of the European Communities shall have jurisdiction.
3. In the case of non-contractual liability, the EIT shall, in accordance with the general principles common to the laws of the Member States, make good any damage caused by it or its servants in the performance of their duties.
The Court of Justice of the European Communities shall have jurisdiction in any dispute relating to compensation for such damage.
4. Any payment made by the EIT to cover the liability referred to in paragraphs 2 and 3 and the costs and expenses incurred in connection therewith shall be considered expenditure of the EIT and shall be covered by the resources of the EIT.
Article 25
Transparency and access to documents
1. The EIT shall ensure that its activities, including those of the KICs, are conducted with a high level of transparency. In particular, the EIT shall set up an accessible, free, multilingual website providing information about its activities and the activities of individual KICs.
2. The EIT shall make public and transmit to the budgetary authority:
a)
its rules of procedure
b)
its rolling triennial work programme as well as its annual activity report.
3. Without prejudice to paragraphs 4 and 5, neither the EIT nor the KICs shall ║divulge to third parties confidential information it has received for which confidential treatment has been requested and is justified.
4. The members of the EIT bodies shall be subject to the confidentiality requirement referred to in Article 287 of the Treaty.
The information gathered by the EIT in accordance with the present Regulation shall be subject to Regulation (EC) No 45/2001 of the European Parliament and of the Council of 18 December 2000 on the protection of individuals with regard to the processing of personal data by the Community institutions and bodies and on the free movement of such data(10).
5. 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(11) shall apply to the documents held by the EIT. The Governing Board shall adopt practical arrangements for applying the said regulation no later than six months after the EIT has been set up.
Article 26
Resources
1. The EIT and the KICs shall be financed █ through:
a)
contributions from businesess or other private organisations, preferably from companies being partner organisations in the KICs;
b)
contributions from the general budget of the European Union, as provided for in Article 30, as well as from unspent funds which would otherwise be returned to the Member States; where Structural Funds are used, decisions shall be made by the Member State or local, regional and managing authorities concerned;
c)
contributions from participating States, third countries or their public authorities;
d)
bequests, donations and contributions from individuals, institutions, foundations or any other national bodies;
e)
revenue generated by its own activities, including royalties from intellectual and industrial property rights or capital endowments █ managed by the EIT Foundation █;
f)
contributions from █ international bodies or institutions;
g)
loans and contributions from the European Investment Bank.
These may include contributions in kind.
2. In the event that a KIC or its partner organisations applies directly for █ assistance from Community programmes (including the Risk Sharing Finance Facility), the Commission shall ensure that these applications are in no way privileged over other applications. Such assistance shall not be granted for activities already funded through the Community budget.
3.No contribution may be made from the Seventh Framework Programme for Research, Technological Development and Demonstration Activities, the Competitiveness and Innovation Framework Programme or the Lifelong Learning Programme to the establishment and/or administration costs directly associated with the EIT or the KICs.
Article 27
Programming and Accountability
1. The EIT shall adopt:
a)
a rolling triennial work programme containing a statement of its major priorities and planned initiatives including an estimate of financing needs and sources;the work programme shall be in accordance with the available financial and human resources;
b)
an annual report by 30 June each year; the report shall outline the activities conducted by the EIT during the preceding calendar year and assess the results with respect to the objectives and timetable set, the risks associated with the activities carried out, the use of resources and the general operation of the EIT.█
2. The EIT shall submit the rolling triennial work programme and the annual report to the Commission, █ the European Parliament, the Council, the European Economic and Social Committee and the Committee for the Regions for information.
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3.The presentation of the EIT's accounts and accounting shall comply with the general rules laid down in Regulation (EC, Euratom) No 2343/2002.
Article 28
Strategic Innovation Agenda
1.By 31 December 2011 at the latest and every seven years thereafter, the EIT shall draft a seven-year Strategic Innovation Agenda (hereinafter referred to as "the SIA") and submit it to the Commission.
2.The SIA shall highlight the long-term strategic areas of the EIT in the fields of key potential economic and societal interest which are likely to generate the greatest innovation added value at European Union level. A more concrete and detailed strategy shall be drawn up in the triennial work programmes as defined in Article 27 , allowing the EIT to respond to internal and external developments in the fields of science, technology, innovation and other relevant areas.
3.The SIA shall take into account the results of the evaluation of the EIT and the KICs provided for in Article 29.
4.The SIA shall include an estimate of financial needs and resources for the long-term development and funding of the EIT.
5.The European Parliament and the Council, acting on a proposal from the Commission, shall adopt the SIA in accordance with Article 251 of the Treaty.
Article 29
Evaluation of the EIT
1. The EIT shall ensure that its activities, including those managed through KICs, are subject to continuous monitoring and periodic independent evaluation, to ensure both the highest quality of outcome and the most efficient use of resources. The EIT shall forward annually to the budgetary authority any information relevant to the outcome of the evaluation procedures.
2. By 31 December 2010 at the latest and every seven years thereafter, the Commission shall carry out an evaluation of the EIT. This shall be based on an independent external evaluation, and shall examine how the EIT fulfils its mission. It shall cover all activities of the EIT and the KICs and shall examine the impact, effectiveness, sustainability, efficiency and relevance of the activities pursued and their relation with Community policies. It shall take into account the views of stakeholders, at both European and national level.
3.The Commission shall forward the results of the evaluation, together with any proposals for the amendment of this Regulation, to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions.
4. The Governing Board shall take due account of the findings of evaluations in the programmes and operations of the EIT.
Article 30
Budgetary Commitments
The indicative financial envelope of Community funding for the implementation of this Regulation during the period of six years as from 1 January 2008 is set at EUR 308 700 000, subject to agreement by the two arms of the budgetary authority in accordance with the IIA, and in particular part C and point 47 thereof. The annual appropriations shall be authorised by the budgetary authority within the limits of the financial framework.
Article 31
Preparation and adoption of the annual budget
1. The expenditure of the EIT shall include ║ staff, administrative, infrastructure and operational expenses. Administrative expenditure shall be kept to a minimum.
2. The financial year shall correspond to the calendar year.
3. The Director shall draw up an estimate of the revenue and expenditure of the EIIT for the following financial year and shall forward it to the Governing Board.
4. Revenue and expenditure shall be in balance.
5. The Governing Board shall adopt the draft estimate accompanied by the preliminary rolling triennial work programme and a draft establishment plan, and forward them by 31 March to the Commission.
6.The estimate shall be transmitted by the Commission to the budgetary authority together with the preliminary draft general budget of the European Union.
7. On the basis of the estimate, the Commission shall enter in the preliminary draft general budget of the European Union the estimates it deems necessary for the establishment plan and the amount of the subsidy to be charged to the general budget, which it shall place before the two arms of the budgetary authority in accordance with Article 272 of the Treaty.
8. The budgetary authority shall authorise the appropriations for the subsidy to the EIT. The budgetary authority shall adopt the establishment plan.
9. The Governing Board adopts the EIT budget, which shall become final following the final adoption of the general budget of the European Union. Where appropriate, it shall be adjusted accordingly.
10.The Governing Board shall, as soon as possible, notify the two arms of the budgetary authority of its intention to implement any project likely to have significant financial implications for the funding of the EIT´s budget, in particular any projects relating to property such as the rental or purchase of buildings. It shall inform the Commission thereof.
11. Any substantial modification to the EIT´s budget shall be subject to the approval of the budgetary authority.
Article 32
Implementation and control of the budget
1. The financial rules applicable to the EIT shall be adopted by the Governing Board after consulting the Commission. They may not depart from the provisions of Regulation (EC, Euratom) No 2343/2002.
2. The Director shall implement the budget of the EIT.
3. The accounts of the EIT shall be consolidated with the Commission's accounts.
4.The EIT shall be subject to the same budgetary control rules as other European Union agencies.
5.The Court of Auditors shall exercise its scrutiny in accordance with Regulation (EC, Euratom) No 2343/2002.
6. Upon a recommendation from the Council, the European Parliament shall, before 30 April of the year n + 2, give a discharge for the year n, to the Director in respect of the implementation of the EIT´s budget █.
Article 33
Protection of the financial interests of the Community
1. With a view to combating fraud, corruption and other illegal activities, Regulation (EC) No 1073/1999 of the European Parliament and of the Council of 25 May 1999 concerning investigations conducted by the European Anti-Fraud Office (OLAF)(12) shall apply to the EIT in its entirety.
2. The EIT shall accede to the Interinstitutional Agreement of 25 May 1999 between the European Parliament, the Council of the European Union and the Commission of the European Communities concerning internal investigations by the European Anti-fraud Office (OLAF)(13). The Governing Board shall formalise this accession and adopt the necessary measures to help OLAF carry out internal investigations.
3. All decisions adopted and contracts concluded by the EIT, shall provide explicitly that OLAF and the Court of Auditors may carry out on-the-spot inspections of the documents of all contractors and sub-contractors which have received Community funds, including at the premises of the final beneficiaries.
4. The provisions set out in paragraphs ║1║, ║2║ and ║3║ shall apply, mutatis mutandis, to the EIT Foundation.
Article 34
Review clause
By 31 December 2010 at the latest and every seven years thereafter, the Commission shall report to the European Parliament and to the Council on the implementation of this Regulation and on the operation of the EIT. The report shall include an assessment of the added value of the EIT, its complementarity with existing national and Community instruments to support innovation, research and higher education, and the achievement of its objective as set out in Article 3. On the basis of this report, the Commission shall make any appropriate proposals for the amendment of this Regulation.
The Commission reports shall take account of the annual reports from the Governing Board provided for under Article 27 and the external evaluations provided for under Article 29.
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Article 35
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.