1. Proposal for the Connecting Europe Facility (CEF)
Gudrun Stock DG INFSO/E-4
9th meeting of the Member States Expert Group on Digitisation and Digital Preservation
30 November 2011

2. Legislative proposals adopted by the Commission on 19 October 2011
Current Status of CEF
Legislative proposals adopted by the Commission on 19 October 2011
Timeframe:
2012, 2013: Budgetary and legislative negotiations in Council, Parliament
ordinary legislative procedure (formerly co-decision)
MSEG Meeting 30 November 2011, Luxembourg

3. CEF Budget Envelopes Overall budget envelope: 50 billion EUR
encompasses trans-European networks in the fields of
Transport billion EUR
Energy billion EUR
Telecommunications billion EUR
builds on the existing trans-European Networks (TEN) policies
MSEG Meeting 30 November 2011, Luxembourg

4. CEF in the field of telecommunications
Budget overall: 9.2 billion EUR
Scope: pan-European projects to give EU citizens and businesses access to digital infrastructures
high-speed broadband networks - 7 billion EUR
services that run on them = digital service infrastructures billion EUR
include Europeana
MSEG Meeting 30 November 2011, Luxembourg

5. Policy Priorities CEF priorities
Fast broadband (30 Mbps) in peripheral, rural regions
Ultra-fast broadband (100 Mbps)
Synergies with TEN-T, TEN-E, Cohesion and Structural Funds
Core platforms for Digital Services
link in with targets of EU2020 and the Digital Agenda for Europe
30 Mbps available everywhere
100 Mbps used by 50% of households
both by 2020
Just to show briefly how CEF links in with EU policy, but not to talk about extensively.
MSEG Meeting 30 November 2011, Luxembourg

6. Why invest in digital infrastructures ?
Broadband networks
1. Current level of investment is not sufficient to ensure growth (and EU2020 targets)
2. No agreement on investment between incumbents and competitors, high cost of capital and high perceived risks
Case for EU investment
3. No business case in rural and (in most) suburban areas
4. Core layers of EU-wide digital services will not initially be financed by MS or private operators
Summary of problems identified
Problem 1a: High-speed internet is a key infra-structure for the 21st century, but Europe falls far short of the necessary investments, leaving potential for growth and societal benefits untapped.
Problem 1b: There is little competitive pressure on incumbents to invest in modern broadband networks. Even where projects could be financially viable, alternative public and private investors (including local administrations and public utilities) are held back by high capital costs (interest rates) and the lack of long-term funding.
Problem 1c: There is currently no adequate strategy to publicly support the rollout of broadband networks in areas where there is no business case. Current levels of European support are sub-critical and are hampered a lack of planning and absorption capacity at the regional level.
Problem 2a: The private sector will not replace public investment in the digital services central elements (platforms, generic services etc) essential to ensure trans-European connectivity, access and interoperability.
Problem 2b: Despite efforts on technical interoperability, on-line public services may stop at the border.
5. Interoperability, standards and cross-border problems for digital services
Digital Services
MSEG Meeting 30 November 2011, Luxembourg

7. Mutual Reinforcement Support deployment through CEF
1. Broadband networks roll-out
- Creating critical mass and potential markets for applications
2. Enhanced supply of broadband
- Enhanced supply of digital services will foster new applications and all in turn need more bandwidth
4. Enhanced demand for broadband
- Digital service infrastructures providing cross-border services in the public interest
3. Development of digital services
Both components of the proposed CEF interventions for telecommunications infrastructures (broadband networks roll-out and deployment of digital service infrastructures) are interconnected and mutually reinforcing. While sufficient broadband capacity is the key enabling technology not only for web growth, but also for research, innovation and digital services, its business case – and hence the incentive for the private sector to invest - is heavily dependent on its use. Conversely, both the design and take up of new broadband enabled services and solutions relies on the availability, speed, reliability and resilience of the physical networks.
MSEG Meeting 30 November 2011, Luxembourg

8. CEF Funding Instruments
Two types
Grants – traditional, partial re-imbursement of costs (mainly for deployment of digital service infrastructures)
Financial Instruments (mainly for deployment of broadband)
Project bonds
Loan guarantees
Specialised infrastructure investment funds
MSEG Meeting 30 November 2011, Luxembourg

9. Digital Service Infrastructures: How are they defined?
Networked services, delivered electronically
Provide trans-European interoperable services in the public interest
Have enabling character for citizens, businesses and/or governments
Contribute to realisation of digital single market by removing bottlenecks in trans-European service deployment
MSEG Meeting 30 November 2011, Luxembourg

10. Digital Service Infrastructures: How many and for how long?
CEF currently proposes 11 digital service infrastructures in 5 areas of application
Commission empowered to modify description of, add new or remove digital service infrastructures
If scope of existing ones no longer “reflect[s] political priorities, technological developments or the situation in the relevant markets”
MSEG Meeting 30 November 2011, Luxembourg

11. Digital Service Infrastructures: Approach (1)
Two-layer approach
Core service platforms:
central elements or hubs ensuring trans-European connectivity, access and interoperability
(e.g. main beneficiary: Europeana Foundation)
Proposed funding rate: 100% (procurement, grants exception)
Generic services
Whereas 20 of Guidelines:
It is expected that innovative applications of commercial nature running on digital
service infrastructures will emerge. Their exploration and testing can be co-financed as
part of research and innovation projects in the Horizon 2020 programme and their
deployment under the cohesion policy.
MSEG Meeting 30 November 2011, Luxembourg

12. Digital Service Infrastructures: Approach (2)
Two-layer approach
Core service platforms
Generic services:
Connected through core service platforms
Provide functionality and content of digital service infrastructures
(e.g. access to objects of European libraries, museums and archives for various uses; beneficiaries: cultural institutions, technology providers)
Proposed funding rate: 75% of direct eligible cost; no overheads)
Whereas 20 of Guidelines:
It is expected that innovative applications of commercial nature running on digital
service infrastructures will emerge. Their exploration and testing can be co-financed as
part of research and innovation projects in the Horizon 2020 programme and their
deployment under the cohesion policy.
MSEG Meeting 30 November 2011, Luxembourg

13. Digital Service Infrastructures: Approach (3)
EU support under CEF restricted to coordination and roll-out of digital service infrastructures
Exploration and testing of innovative applications of commercial nature running on digital service infrastructures can be co-financed as part of research and innovation projects in Horizon 2020
MSEG Meeting 30 November 2011, Luxembourg

14. Digital Service Infrastructures (1)
Trans-European high-speed backbone connections for public administrations
Cross-border delivery of eGovernment services
Interoperable electronic identification and authentication across Europe; as core platform for
Electronic procedures for setting up an running a business in another European country
Interoperable cross-border electronic procurement services
Interoperable cross-border eJustice services
Interoperable cross-border eHealth services
European Platform for the interconnection of European business registers
Show for sake of completeness, but not mention all of them individually.
MSEG Meeting 30 November 2011, Luxembourg

15. Digital Service Infrastructures (2)
Enabling access to public sector information and multilingual services
Access to digital resources of European Heritage (“Europeana”)
Access to re-usable public sector information (“Data.eu”)
Multilingual access to online services)
Safety and security
Safer internet service infrastructure
Critical information infrastructures
Deployment of information and communication technology solutions for intelligent energy networks and for the provision of Smart Energy Services
Highlight Europeana and show in which area it appears.
MSEG Meeting 30 November 2011, Luxembourg

16. Sustainable funding for Europeana
Response to KA 15 of DAE
Sustainable model
for financing the
EU public digital
library Europeana
CEF:
Access to digital resources
of European Heritage
“Europeana”
MSEG Meeting 30 November 2011, Luxembourg

17. Some formalities to end with …
CEF is based on
Art. 170 TFEU: to achieve single market, “the Union shall contribute to the establishment and development of trans-European networks in the areas of transport, telecommuniations and energy infrastructures”
Art. 171 TFEU: … “the Union shall establish a series of guidelines …; these guidelines shall identify projects of common interest”
Art. 172 TFEU: “The guidelines and other measures … shall be adopted by the European Parliament and the Council, acting in accordance with the ordinary legislative procedure …”
You may be used to eContentplus and CIP ICT PSP, which were decisions by Council and Parliament establishing multiannual funding programmes.
CEF is a different animal. Former eTEN programme has already been party of trans-European networks in the past, before it was merged into CIP.
MSEG Meeting 30 November 2011, Luxembourg

18. And some more … CEF proposal consists of
Regulation on Guidelines for trans-European telecommunications networks [COM(2011) 657/3]
the WHY and WHAT
Broadband and digital service infrastructures = “projects of common interest”
Separate sets of guidelines for Energy and Transport
Regulation establishing Connecting Europe Facility [COM(2011)665]
the HOW and HOW MUCH
“Other measures”
Joint with Energy and Transport
MSEG Meeting 30 November 2011, Luxembourg

19. Further info + underlying documents at: THANK YOU FOR YOUR ATTENTION!
Further Information
Further info + underlying documents at:
&
THANK YOU FOR YOUR ATTENTION!
MSEG Meeting 30 November 2011, Luxembourg