The Commission has presented an amended proposal for a Decision of the European Parliament and of the Council establishing the Framework Programme for Research and Innovation ‘Horizon Europe’ for the period 2021-2027 to support the recovery from the COVID-19 pandemic.

BACKGROUND: in order to contain the ‘COVID-19’ outbreak, Member States and third countries have adopted an unprecedented set of measures. These measures have significantly disrupted economic activities.

A sharp contraction of growth in the Union is now forecast for 2020 and is likely to continue into 2021. Recovery risks being very uneven in the different Member States, increasing the divergence between national economies. The different fiscal ability of Member States to provide financial support where it is needed most for recovery and the divergence of national measures endangers the single market.

This exceptional situation calls for a coherent and unified approach at the level of the Union to prevent further deterioration of the economy and to boost a balanced recovery of the economic activity, ensuring continuity and increase in investments for the green and digital transition.

A comprehensive set of measures for economic recovery are needed, requiring substantial amounts of public and private investment to energise the economy, create high-quality jobs and invest in repairing the immediate damage brought by the COVID-19 pandemic.

Targeted changes to the Framework Programme for Research and Innovation and its implementing Specific Programme Horizon Europe, – the Neighbourhood, Development and International Cooperation Instrument ( NDICI ) – the European Agricultural Fund for Rural Development ( EAFRD ) interventions under the CAP strategic plans are proposed by the Commission as part of the revised proposal for the Multiannual Financial Framework (MFF) for the period 2021-2027, which includes the EU Recovery Instrument .

CONTENT: the main amendments to the Decision establishing the specific programme for the implementation of the framework programme for research and innovation ‘Horizon Europe’ are intended to:

- enable the implementation of the measures laid down in the proposal for a Regulation establishing an EU Recovery Instrument through the mechanisms for implementing the framework programme for research and innovation;

- enable financing from the EU Recovery Instrument as external assigned revenues in accordance with Article 21(5) of the Financial Regulation.

The EU Instrument for Recovery shall reinforce the support, via Horizon Europe, to health and climate related research and innovation activities. This will contribute to strengthened preparedness to effectively and rapidly respond to emergencies and investment in science-driven solutions as well as ensuring consistency with the European Green Deal goals.

Budgetary implications

The Commission proposes to make a total of EUR 14 647 million available for the research and innovation framework programme ‘Horizon Europe’. The additional funding shall be made available through the European Instrument for Recovery on the basis of the empowerment provided for in the new Own Resources Decision.

As a general rule, the financial support and the relevant actions carried out by the Commission should be frontloaded by the end of 2024 and, as regards the non-repayable financial support, for at least 60 % of the total, be undertaken by the end of 2022.

The remaining years after 2024 until the end of the MFF should therefore be used by the Commission to foster the implementation of the relevant actions on the ground and to achieve the expected recovery in the relevant economic and social sectors and promoting resilience and convergence.

The European Parliament adopted by 578 votes to 40, with 41 abstentions, a legislative resolution on the proposal for a decision of the European Parliament and of the Council on establishing the specific programme implementing Horizon Europe - the Framework Programme for Research and Innovation.

The European Parliament's position adopted at first reading under the ordinary legislative procedure amended the Commission's proposal.

Objectives

The Specific Programme has the following operational objectives:

strengthening excellent basic and frontier research; reinforcing and spreading excellence, including by fostering wider participation throughout the Union; reinforcing the link between research, innovation, and where appropriate, education and other policies, including complementarities with national and regional and EU research and innovation policies and activities; supporting the implementation of Union policy priorities including in particular the sustainable development goals and the Paris Agreement; promoting responsible research and innovation, taking into account the precautionary principle; strengthening the gender dimension across the Programme; increasing collaboration links in European research and innovation and across sectors and disciplines, including social sciences and humanities ; connecting and developing to research infrastructures across the European Research Area and providing transnational access; fostering open science and ensuring visibility to the public and open access to scientific publications and research data, including appropriate exceptions; improving the relationship and interaction between science and society, including the visibility of science in society and science communication, and promoting the involvement of citizens and end-users in co-design and co-creation processes; accelerating industrial transformation, including through improved skills for innovation; stimulating R&I activities in SMEs and the creation and scale-up of innovative companies, in particular start-ups, SMEs, and in exceptional cases small mid-caps.

Main pillars

The Horizon 2020 programme shall have three main pillars:

Pillar I: Excellent Science (includes the European Research Council, Marie Skłodowska-Curie Actions and research infrastructures); Pillar II: Global Challenges and European Industrial Competitiveness (including the 'Health', 'Culture, Creativity and Inclusive Society', 'Civil Security for Society', 'Digital, Industry and Space ', 'Climate, Energy and Mobility', 'Food, Bioeconomy, Natural Resources, Agriculture and Environment ' clusters and non-nuclear direct actions of the Joint Research Centre (JRC); Pillar III: Innovative Europe (includes the European Innovation Council (EIC);

The Part 'Widening Participation and Strengthening the European Research Area' seeks to widen participation and spread excellence and reform and enhance the European R&I system.

Budget

Parliament proposed that the financial envelope for the implementation of the Specific Programme for the period 2021 to 2027 shall be EUR 120 billion in 2018 prices .

Strategic Plan

The implementation of the Specific Programme shall be facilitated by a multiannual Strategic Plan of research and innovation activities, also promoting consistency between the work programmes, EU priorities and national priorities. The result of the Strategic Planning Process shall be set out in a multiannual Strategic Plan, for preparing the content in the work programmes covering a maximum period of four years, while retaining sufficient flexibility to respond rapidly to new and emerging challenges, unexpected opportunities and crises.

The Strategic Planning Process shall focus in particular on the 'Global challenges and European industrial competitiveness' pillar and cover also relevant activities in other pillars and the Widening Participation and Strengthening the European Research Area part.

The Commission shall ensure early involvement and extensive exchanges with the Member States, and extensive exchanges with the European Parliament, complemented by consultation with stakeholders and the public at large. The Strategic Plan shall be adopted by the Commission, by means of an implementing act

Missions

Research and Innovation Missions may be established in the mission areas identified in Annex Va of the Regulation establishing Horizon Europe.

For each mission, a mission board shall be established, unless existing advisory structures can be used. The mission board shall be composed of a maximum of 15 independent high level individuals with broad expertise, from across Europe and beyond, including relevant end-users' representatives.

The members of the mission boards shall be appointed by the Commission, following a transparent procedure for their identification, including an open call for expressions of interest. The Programme Committee shall be consulted on the identification and selection procedures, including the criteria used, in a timely manner. The term of office of mission board members shall be up to five years, renewable once.

The Council adopted a partial general approach on the proposal for a Council Decision establishing the specific programme for the implementation of the research and innovation framework programme "Horizon Europe".

The programme sets out the operational objectives and types of activities envisaged to implement Horizon Europe, the EU's framework programme for research and innovation for the years 2021 to 2027.

The decision contains provisions concerning:

the main lines of research activities under each Horizon Europe pillar; the multiannual strategic planning process, to be adopted by the Commission with early and close involvement of Member States; the establishment of the European Innovation Council (CEI); work programmes for the implementation of the specific programme, to be adopted by the Commission; broadening participation in research activities funded by Horizon Europe; the strengthening of the European Research Area.

The Specific Programme has the following operational objectives:

strengthening excellent basic and frontier research; reinforcing and spreading excellence, including by fostering wider participation throughout the Union; reinforcing the link between research, innovation, and where appropriate, education and other policies; supporting the implementation of Union policy priorities including in particular the sustainable development goals and the Paris Agreement; promoting responsible research and innovation, taking into account the precautionary principle, strengthening the gender dimension across the Programme; increasing collaboration links in European research and innovation and across sectors and disciplines, including social sciences and humanities; strengthening international cooperation; connecting and developing to research infrastructures across the European Research Area and providing transnational access; attracting talent, training and retaining researchers and innovators in the European Research Area, including through mobility; fostering open science and ensuring visibility to the public and open access to scientific publications and research data, including appropriate exceptions; encouraging exploitation of R&I results and actively disseminating and exploiting results, in particular for leveraging private investments and policy development; delivering, through R&I missions, on ambitious goals within a set timeframe; improving the relationship and interaction between science and society, including the visibility of science in society and science communication, and promoting the involvement of citizens and end-users in co-design and co-creation processes; accelerating industrial transformation, including through improved skills for innovation; stimulating R&I activities in SMEs and the creation and scale-up of innovative companies, in particular start-ups, SMEs, and in exceptional cases small mid-caps; improving access to risk finance, including through synergies with InvestEU, in particular where the market does not provide viable financing.

Structure

The Specific Programme shall consist of the following parts:

Pillar I 'Excellent Science'; Pillar II 'Global Challenges and European Industrial Competitiveness’; Pillar III 'Innovative Europe'; Part 'Widening Participation and Strengthening the European Research Area'.

Budget

The financial envelope for the implementation of the Specific Programme for the period 2021 to 2027 shall be [EUR 91 100 000 000] in current prices.

The EIC Board

The European Innovation Council Board shall be composed of 15 to 20 independent high level individuals drawn from various parts of Europe's innovation ecosystem, including entrepreneurs, corporate leaders, investors, public administration experts and researchers, including academic experts on innovation. It shall contribute to outreach actions, with EIC Board members striving to enhance the prestige of the EIC brand.

The members of the EIC Board shall be appointed by the Commission, following an open call for nominations or for expression of interests or both, whichever the Commission will find more appropriate.

The EIC Board may upon request address recommendations to the Commission on any matter which from an innovation perspective may enhance and foster innovation eco-systems across Europe or emerging technology trends from EIC's portfolio, to inform the programming in other parts of the Specific Programme.

The Programme shall be implemented by work programmes. They shall set out the expected impact and be prepared following a strategic planning process to this Decision.

The European Parliament adopted by 569 votes to 74, with 20 abstentions, amendments to the proposal for a decision of the European Parliament and of the Council on establishing the specific programme implementing Horizon Europe - the Framework Programme for Research and Innovation.

The issue was referred back to the committee for interinstitutional negotiations.

The main amendments adopted in plenary concern the following points:

Specific objectives

Parliament noted that the specific Programme shall have, inter alia , the following operational objectives:

- strengthening and widening Europe’s scientific and technological base, reinforcing and spreading excellence;

- connecting, developing and facilitating wide access, including virtually, to research infrastructures across the European Research Area;

- attracting, training and retaining EU and international researchers and innovators;

- reinforcing the link between research, innovation, education, and other policies, including the Sustainable Development Goals and Paris Agreement;

- driving EU industrial transformation to unlock the potential of Europe’s strategic sectors, such as Key Enabling Technologies;

Main pillars

The Horizon 2020 programme shall have three main pillars:

Pillar I: Excellent and Open Science (includes grants to top-level individual researchers, and investments in future technologies and training for researchers);

Pillar II: Global Challenges and European Industrial Competitiveness (includes investments in biotechnology and space technologies, access to risk finance and support for innovative small firms);

Pillar III: Innovative Europe (includes the European Innovation Council (EIC), spreading excellence and widening participation and reforming and enhancing the European R&I system).

The European Innovation Council (EIC), established by the Commission, shall be built into two instruments, the Pathfinder and the Accelerator which shall be continuously evaluated in order to support innovation in a systematic way.

The Commission shall also set up a Health Steering Board for Health for implementing the actions under Pillar II 'Global Challenges and European Industrial Competitiveness' which relates to 'Health'.

Budget

Parliament proposed that the financial envelope for the implementation of the Specific Programme for the period 2021 to 2027 shall be EUR 120 billion in 2018 prices (compared to EUR 94.1 billion as proposed by the Commission).

Specific actions

The specific Programme's actions shall be used to reinforce, widen and extend the excellence of the Union's scientific and technological base, tackle major global challenges, increase the Union's industrial leadership, improve quality of life in the Union as well as boost investment, address market failures or sub-optimal investment situations , leveraging additional funding rather than crowding out private financing.

Members considered that the specific Programme should be implemented in a transparent, participatory and strategic way seeking involvement of stakeholders and civil society. Stakeholder representation and civil society involvement should be balanced, representing various backgrounds.

Enhanced support for SMEs

Special attention will be put into supporting SMEs across Pillar II in collaborative parts and via a dedicated mono-beneficiary, grant-based SME Instrument. All clusters shall dedicate an appropriate amount to the SME instrument, which will be fully bottom up, with continuously open calls and a number cut-off dates, dedicated exclusively to incremental innovation. Only SMEs will be allowed to apply for funding, including via collaborations or subcontracting. Projects must have a clear European dimension and contribute to EU added value.

Gender aspects shall also be appropriately integrated throughout the Programme and specific gender research should be also required to support the implementation and design of better EU gender equality policies.

Fast Track to Research and Innovation

Horizon Europe will provide the possibility for beneficiaries to apply for funding in a faster manner, where provided for in the Work Programme's of all clusters, EIC and "spreading excellence", covering research and innovation activities. This approach will have a bottom-up-driven logic on the basis of continuously open calls and "time to grant" not exceeding six months. In the “spreading excellence” part, this approach will support less developed EU countries to access funds in a faster and bottom-up manner. This modality will be applied to at least 15% of the Programme’s budget.

The Committee on Industry, Research and Energy adopted the report by Christian EHLER (EPP, DE) on the proposal for a decision of the European Parliament and of the Council on establishing the specific programme implementing Horizon Europe - the Framework Programme for Research and Innovation.

The committee recommended that the European Parliament's position adopted at first reading under the ordinary legislative procedure should amend the Commission's proposal as follows.

Specific actions : the Specific Programme's actions shall be used to reinforce, widen and extend the excellence of the Union's scientific and technological base, tackle major global challenges, increase the Union's industrial leadership, improve quality of life in the Union as well as boost investment, address market failures or sub-optimal investment situations , leveraging additional funding rather than crowding out private financing.

The Specific Programme shall be implemented in a transparent, participatory and strategic way seeking involvement of stakeholders and civil society. Stakeholder representation and civil society involvement shall be balanced representing various backgrounds

Specific objectives : the Specific Programme shall have, inter alia , the following operational objectives:

strengthening and widening Europe’s scientific and technological base, reinforcing and spreading excellence; connecting, developing and facilitating wide access, including virtually, to research infrastructures across the European Research Area; attracting, training and retaining EU and international researchers and innovators; reinforcing the link between research, innovation, education, and other policies, including the Sustainable Development Goals and Paris Agreement; driving EU industrial transformation to unlock the potential of Europe’s strategic sectors, such as Key Enabling Technologies;

Main pillars : the Horizon 2020 programme shall have three main pillars:

Pillar I: Excellent and Open Science (includes grants to top-level individual researchers, and investments in future technologies and training for researchers); Pillar II: Global Challenges and European Industrial Competitiveness (includes investments in biotechnology and space technologies, access to risk finance and support for innovative small firms); Pillar III : Innovative Europe (includes the European Innovation Council (EIC), spreading excellence and widening participation and reforming and enhancing the European R&I system).

Budget : the proposed financial envelope for the implementation of the Specific Programme for the period 2021 to 2027 shall be EUR 120 billion in 2018 prices (compared to EUR 94.1 billion as proposed by the Commission).

Enhanced support for SMEs : special attention will be put into supporting SMEs across Pillar II in collaborative parts and via a dedicated mono-beneficiary, grant-based SME Instrument. All clusters shall dedicate an appropriate amount to the SME instrument, which will be fully bottom up, with continuously open calls and a number cut-off dates, dedicated exclusively to incremental innovation. Only SMEs will be allowed to apply for funding, including via collaborations or subcontracting. Projects must have a clear European dimension and contribute to EU added value.

Gender aspects shall also be appropriately integrated throughout the Programme and specific gender research should be also required to support the implementation and design of better EU gender equality policies.

PURPOSE: to establish the specific programme implementing Horizon Europe - the framework programme for research and innovation.

PROPOSED ACT: Decision of the European Parliament and of the Council.

ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.

BACKGROUND: while the proposal for a Regulation establishing the framework programme for research and innovation ‘Horizon Europe’ for the period 2021-2027 sets out the general and specific objectives of Horizon Europe, the structure and the broad lines of activities to be carried out, this proposal for a Decision aims to define the operational objectives and the activities which are specific to parts of Horizon Europe .

The Horizon Europe proposal is in line with the Commission proposal on the next multiannual financial framework (MFF) for the period 2021-2027. The proposal is framed by the premise that research and innovation (R&I) delivers on citizens’ priorities, boosts the Union’s productivity and competitiveness, and is crucial for sustaining our socio-economic model and values, and enabling solutions that address challenges in a more systemic way.

CONTENT: the proposal for a Decision seeks to establish the specific programme implementing Horizon Europe - the framework programme for research and innovation . It lays down the operational objectives of the specific programme, the budget for the period 2021 – 2027, the rules for implementation of the specific programme and activities to be carried out under this programme.

Horizon Europe is comprised of 3 pillars , namely:

Pillar I ‘Open Science’ which builds on the success of the European Research Council, the Marie Skłodowska-Curie Actions and the Research Infrastructures component in the current framework programme. Pillar II ‘Global issues and industrial competitiveness’ includes five thematic clusters that address the full spectrum of global challenges through top-down collaborative R&I activities: (i) health; (ii) inclusive and secure society; (iii) digital and industry; (iv) climate, energy and mobility; (v) food and natural resources. A small number of missions with specific goals will be launched from within the pillar. Pillar III ‘Open Innovation’ which essentially consists of: (i) scaling up breakthrough and market-creating innovation through a new European Innovation Council; (ii) activities aiming at enhancing and developing the overall European innovation landscape, including support to the European Institute of Innovation and Technology (EIT).

Strategic planning : the implementation of Horizon Europe shall be steered by an inclusive and transparent strategic planning process of the research and innovation activities the programme will fund. The strategic planning exercise shall lay out a multiannual strategy for the development of work programme content, though it will remain sufficiently flexible to respond rapidly to unexpected needs and crises.

This proposal lays down specific provisions for the programming and implementation of the framework programme, in particular for:

(1) Missions (under the global issues and industrial competitiveness pillar ): these missions shall be co-designed and decided as part of the Horizon Europe strategic planning process, which shall include collaboration between the relevant Commission services, Member States, the European Parliament and relevant stakeholders.

The first few missions shall be introduced in the first strategic planning exercise. Based on the first two years' experience, the number and scale of missions may be increased in subsequent work programmes. Whilst the duration of the Union support to missions shall not be expected to exceed 10 years and shall be subject to regular review (through the work programme cycle), the timeframe for expected impact of missions may spread out beyond this timeframe.

For co-designing the missions and steering their implementation, the Commission may set up mission boards whose members shall be appointed by the Commission, following an open call for expressions of interest.

(2) The European Research Council (ERC) : the Commission shall establish a European Research Council (ERC) to implement the actions under Pillar I 'Open Science' which relate to the ERC. The ERC shall be composed of the independent Scientific Council and the dedicated implementation structure responsible for the administrative implementation and programme execution. The President shall be appointed by the Commission following a transparent recruitment process involving an independent dedicated search committee, for a term of office limited to four years, renewable once.

(3) The European Innovation Council (EIC) : to implement the EIC, the Commission shall establish a high level board (the EIC Board) that shall advise, inter alia , on the overall strategy, objectives, activities, evaluation criteria and selection of experts.

The EIC shall be the sole channel for the Union support to breakthrough market-creating innovation. It shall provide direct tailor-made support to innovators through two main funding instruments – the Pathfinder and the Accelerator – which shall both focus through a mainly bottom-up, high-risk approach on breakthrough innovation; on innovator needs and be pro-actively managed.

(4) Work programmes : the programme shall be implemented by work programmes referred to in Article 110 of Financial Regulation. They shall be prepared following a strategic planning process. Work programmes shall set out, where applicable, the overall amount reserved for blending operations.

(5) Committee procedure : for the implementation of Horizon Europe, the Commission shall be assisted by a committee within the meaning of Regulation (EU) No 182/2011. It would meet in different configurations according to the matter to be discussed.

Proposed budget : the financial envelope for the implementation of the framework programme for the period 2021-2027 shall amount to EUR 94.10 billion in current prices .