Towards the Seventh Framework Programme Martin Penny European Commission Research DG

Simplification of procedures l Objectives: –Eliminate procedures, rules and requests with no added value –Cut the number of requests to participants –Avoid red tape and increase user-friendliness –Reduce delays l Principles: –Rationalisation of all procedures –Communication –Strike a new balance between risk and control to provide  Greater trust  Increased risk-taking

Concrete Measures Flexible Application 1. Funding schemes based on FP6 … –… But more flexible application –Simple set of funding schemes –Objectives and contents determined by programme –Participants identified in work/specific programme

Consistent high-quality communication 2. Consistent high-quality communication –Information: accessible and necessary –Clear, user-friendly, no duplication –Uniform interpretation

Information from participants 3. Information requested from participants –Submitted once; kept centrally –Participant registration number for all projects –Additional information requests specific to project only –Reporting: only information necessary for follow-up –Electronic tools for all communication Commission  participants

Community financial interest versus burden on participants 4. Clarifying the limits of a priori controls –Capacity to implement the work  Assess during evaluation  By external evaluators –Financial viability based on set criteria  Same criteria across Commission  Criteria will be published  No open ended assessment of risk –Alternatives to bank guarantees

Operational autonomy for consortia 5. Operational autonomy for consortia –Flexible implementation management autonomy –Usual management/accounting practices –Independent auditors certify costs –No Commission micro-management –Tools to train project coordinators –Help-desks for project management issues

Streamlining the selection process 6. Streamlining the Commission selection process –Programme Committees  To concentrate on work programmes and major policy issues  To get information on each individual grant funded –This streamlined procedurereduced ‘ time to project start ’

Better use of research budget 7. Effective use of the research budget –Reuse funds from unpromising projects –Requires changes to Financial Regulation, e.g.  Annual commitment of funds for projects  Use de-committed funds for other projects

Lump-sum and flat-rate financing schemes 8. Better use of lump-sum and flat-rate financing schemes –Greater use of lump-sum financing for certain actions –For Networks of Excellence, periodic release of fixed lump sums –Greater reliance on flat rates for certain costs

Simplifying cost reporting models and clarifying eligible costs 9. Simplify cost-reporting models –Greater use of lump sums and flat rates –Eliminate cost-reporting models used for FP6 10. Simplified support rates –Support rates determined only by type of activity –Eligible costs and receipts of the project overall –Community financial contribution covers all eligible costs –State aid rules determine total funding

Funding Schemes 1. Collaborative projects –Consortia with participants from different countries –New knowledge, technology, products or common resources for research –Size, scope and internal organisation of projects can vary 2. Networks of Excellence –Joint programmes by organisations integrating activities in a given field –Longer term co-operation –Formal commitment to integrate resources

Funding Schemes (continued) 3. Coordination and support actions –Networking, exchanges, trans-national access to research infrastructures, studies, conferences, etc. 4.Individual projects 5.Training and career development of researchers 6.Research for the benefit of specific groups (in particular SMEs) Generally based on calls for proposals

Funding Schemes (continued) l Article 171 and Article 169 l Large-scale initiatives from multiple sources –Joint implementation of national research programmes: Article 169 –Joint Technology Initiatives: Article 171 –New infrastructures of European interest: Article 171

Funding Schemes (continued) l Improved access to European Investment Bank (EIB) loans –‘ Risk-Sharing Finance Facility ’ l Complementary funding from the Structural Funds –For project participants from convergence and outermost regions –Wherever possible and appropriate l Joint Research Centre: direct actions

General: Three independent participants from three different Member States (MS) or Associated countries Natural persons may participate JRC may participate and is deemed to be from a different MS or associated country (same principles for international European interest organisations and entities established under Community law) Additional conditions can be established by the work programme or specific programme (i.e. number of participants, place of establishment, participant type) Sole participants composed of members that meet the criteria above can participate Minimum conditions for participation

Specific: Frontier research actions (ERC): – at least one legal entity established in a MS or Associated country Coordination and support actions and actions in favour of training and career development of researchers – minimum of one legal entity (no limit on place of establishment) Collaborative projects addressing the participation of international cooperation partner countries in parity with MS or Ac – minimum is four participants of which 2 in MS or Ac and 2 in INCO countries Participation of international organisations and participants from third countries if in addition to minima Minimum conditions for participation

Submission and Evaluation Commission to adopt and publish rules on the procedures for proposal submission, evaluation, selection and award o Including two-stage submission and two-step evaluation Commission to adopt and publish rules to ensure consistent verification of the legal status and financial capacity of participants Evaluation criteria established in Specific Programmes and work programmes Irregularity and violation of fundamental ethical principles are grounds for exclusion from evaluation and selection Transparent, fair and impartial evaluation procedures with help of independent experts

Implementation and grant agreements Participants implement the work jointly and severally and carry out work of a defaulting partner unless the Commission relieves them of that obligation (not = FP6 financial collective responsibility) Commission to assess risk of default and may establish a mechanism to cover financial loss (i.e. to replace financial collective responsibility) If implementation of the project is impossible or participants fail to implement it, the Commission shall ensure its termination Consortium agreements obligatory unless exempted by call for proposals Changes in consortium membership possible

Implementation and grant agreements Model grant agreement to be drawn up: to establish rights and obligations of participants (including submission of reports, termination etc.); identify whether and what part of the EC financial contribution is based on reimbursement of eligible costs, lump sums or flat rates; Identify which changes in composition of the consortium require prior publication of a competitive call, and; shall reflect the principles laid down in the European Charter for Researchers and the Code of Conduct for the Recruitment of Researchers grant agreement comes into force upon signature by the coordinator and the Commission and applies to each participant that has acceded to it

Community financial contribution Eligibility for Funding : 1.Legal entities from Member States and Associated countries or created under Community law (and JRC) 2.International European interest organisations 3.Legal entities established in international cooperation partner (INCO) countries and International organisations, third countries other than INCO, if provided for in specific programme or work programme; or essential for carrying out action; or provision for funding is provided for in a bilateral agreement Basis for Funding: 1.Reimbursement of eligible costs 2.Flat rates, including scale of unit costs 3.Lump sum amounts

l Co-financing, no profit l May be combined with the pre-set lump sums and/or flat rates for certain items of a project l Cost reporting models eliminated l Participants charge direct and indirect costs (option of flat rate for those who do not or can not charge real indirect costs) l Costs must be actual; incurred during the project; determined according to the usual accounting and management principles/practices and used only to achieve project objectives, and consistent with principles of economy, efficiency and effectiveness; recorded in accounts and paid (or the accounts of third parties); exclusive of non-eligible costs l Average personnel costs may be used if consistent with above and do not differ significantly from actual l Audit certificates continued but rationalised Reimbursement of eligible costs

Lump sum and flat rate financing l Lump sum and/or flat rate financing (scale of unit costs) could be used for the whole action, or l Flat-rates/lump sums for certain costs can be combined with reimbursement of eligible costs l A specific lump sum is identified for Networks of Excellence (NoEs) (unless otherwise provided for in work programme), l calculated according to the number of researchers to be integrated l (€ 23,500 / year / researcher) l payment of which is based on attainment of progress l Lump sums and flat rates do not require justification of eligible costs

l Research and technological activities – 50% of eligible costs except for: l Public bodies – 75% l Secondary and higher education establishments – 75% l Research organisations (non-profit) – 75% l SMEs – 75% l Demonstration activities – 50% of eligible costs l Other activities – 100% of eligible costs l Frontier research actions – 100% l Coordination and support actions – 100% l Training and career development of researchers actions – 100% Maximum funding rates

Information l EU research: l Seventh Framework Programme: l Information on research programmes and projects: l RTD info magazine: l Information requests: