Regulation on European Institute of Innovation and Technology (EIT) Partial general approach - Hoofdinhoud

Council of the European Union Brussels, 20 November 2019 (OR. en)

14325/19 Interinstitutional File:

2019/0151(COD) i

RECH 502 COMPET 756 EDUC 458

NOTE

From: Permanent Representatives Committee (Part 1)

To: Council

No. prev. doc.: 14023/1/19

No. Cion doc.: 11228/19+ADD1

Subject: Regulation on European Institute of Innovation and Technology (EIT)

Partial general approach

• I. 

  INTRODUCTION

• 1. 

  On 12 July 2019, the European Commission presented, based on Article 173(3) TFEU, its proposals for the Regulation of the European Parliament and of the Council on the European Institute of Innovation and Technology (EIT) and for the Decision of the European Parliament and of the Council on the Strategic Innovation Agenda for the European Institute of

  Innovation and Technology (EIT) 2021-2027, including their impact assessments 1 . A corrigendum to the impact assessments was issued by the Commission on 1 August 2019 2 .

• 2. 

  A financial envelope for the implementation of the EIT of €3 billion (in current prices) is envisaged in the next Framework Programme for research and innovation, Horizon Europe, for the 2021-2027 period.

1 11227/19 + ADD 1-2, 11228/19 + ADD1-2

2 11227/19 ADD 2 REV 1 and 11228/19 ADD 2 REV 1

• 3. 

  Since there is a financial envelope for the implementation of the EIT in the Horizon Europe

  Framework Programme and as Horizon Europe is linked to the Multiannual Financial Framework (MFF), provisions with budgetary implications (Article 23) are square bracketed (not part of the partial general approach). The EIT is however a Union body and not an MFF Programme.

• 4. 

  Recitals are also not part of the partial general approach.

• 5. 

  The European Parliament has appointed MEP Marisa MATIAS (GUE-NGL) as rapporteur on the EIT Regulation. The European Parliament's Industry, Research and Energy Committee has not yet voted on the file. The European Economic and Social Committee adopted its opinion on 31 October 2019 3 . On 18 September 2019, the Permanent Representatives Committee

  decided that the Committee of the Regions would also be consulted on the EIT Regulation 4 . It has not yet provided its opinion.

II. WORK WITHIN THE COUNCIL

• 6. 

  In July 2019, the Finnish Presidency launched the discussion in the Research Working Party. During July and August, the Presidency gathered both general and specific written comments on the proposal from delegations.

• 7. 

  During the same period, the Research Working Party also considered the Commission's impact assessment. In conclusion, delegations recognised that the Commission's impact assessment had no major omissions or factual mistakes. Accordingly, the Working Party proceeded with the examination of the proposals 5 .

• 8. 

  Based on the comments collected during July and August, the Presidency presented at the

  Working Party on 16 September 2019 a first compromise text on the draft EIT Regulation. Since this meeting, the Working Party has examined intensively the continuously updated Presidency compromise texts.

3 14042/19 (opinion covers both the EIT Regulation and the Strategic Innovation Agenda)

4 12017/19

5 12193/19

• 9. 

  Furthermore, at the Working Party meeting of 14 October 2019, the Presidency presented a first compromise text on the annex to the draft EIT Regulation that sets out the statutes of the EIT.

• 10. 

  During the intensive discussions at the Working Party, some important changes have been introduced to the Commission proposal. These concern in particular the removal of timeneutrality

  of the EIT Regulation, the role of the Member States and the Commission in the governance of the EIT, the openness of the Knowledge and Innovation Communities (KICs) of the EIT towards potential new partners and the monitoring and evaluation of the EIT and the KICs,

• 11. 

  The Commission proposed to amend the EIT Regulation through the recast legislative technique, indicating that this would ensure greater legal clarity and better readability, and to make it time neutral 6 . In the course of the discussions at the Working Party, it became nevertheless clear that the time neutrality would not be acceptable for most Member States. Some Member States wanted to add in the EIT Regulation similar references to time

  neutrality as they have proposed for certain MFF Programmes. Furthermore, in view of the Member States, the recast technique prevented them from making the changes they considered necessary, relating for instance to the links with the Horizon Europe Framework Programme and in particular the provisions on the European Partnerships. The Presidency has therefore proposed modifications in the text to respond to Member States' concerns.

6 Time neutrality implies that the EIT Regulation would no longer need to be adapted in subsequent MFF cycles.

• 12. 

  The role of the Member States and the Commission in the governance of the EIT has been strengthened both in the EIT Regulation and in its Annex, the statutes of the EIT. The EIT Governing Board will execute its responsibilities under the supervision of the Commission when implementing the EIT's mission and objectives. Furthermore, certain important

  decisions of the Governing Board will require agreement of the Commission. A Member States' Representatives Group will give advice to the Governing Board and the EIT Director on strategically important issues. The tasks of this group have been added in a separate section in the statutes.

• 13. 

  The openness of the EIT KICs towards potential new partners has also been reinforced. The Presidency compromise text introduces many changes in the Commission proposal to ensure that the KICs become more open and transparent. Strengthening of the innovation ecosystems in an open and transparent manner has been added as one important aspect of the EIT's

  mission and objectives.

• 14. 

  New provisions reinforce the monitoring and evaluation of openness as well as financial sustainability and cost-efficiency of the KICs. The Presidency compromise proposal

  introduces a more sound and systematic monitoring, with focus on inter alia the progress towards the financial sustainability and towards pan-European coverage and openness. The monitoring will support the EIT Governing Board in taking informed decisions on corrective measures to adopt in case the KICs underperform, deliver inadequate results or lack European added value.

• 15. 

  The Presidency's compromise texts on the draft EIT Regulation and the EIT statutes were examined at the Research Working Party meetings on 4, 7, 8, and 11 November 2019. Based on the discussions, the Presidency introduced further changes in the text in order to prepare the compromise text for Coreper.

• 16. 

  On 20 November 2019, Coreper discussed the main outstanding issues presented in the

  Presidency compromise text.

• 17. 

  The Portuguese and Slovenian delegations presented a joint proposal concerning Articles

  2(8), 7(2) and 19 of the text. According to these delegations, their proposals would cater for the remaining concerns relating to the Regional Innovation Scheme and its role in fostering support in attracting and integrating new partners into KICs, pan-European coverage of the KICs and strengthening the role of strategic coordinating process in shaping the European partnership landscape. The proposal concerning Article 2(8) received broad support at Coreper and the Presidency agreed to introduce it in the annexed text. According to the Presidency, the proposed modification in Article 7 (coverage of the EIT) seemed problematic for many Member States and the proposed modification in Article 19 (link with the Horizon Europe Forum of partnerships) would not be in line with Horizon Europe and its strategic planning process, especially concerning other institutionalised European partnerships. It could however be reflected in the Strategic Innovation Agenda on which the discussions will still continue. The Presidency therefore concluded that other changes than the one in Article 2(8) could not be introduced to the text.

• 18. 

  The issue of time neutrality remained the only main outstanding issue and will be elaborated further below in Chapter III.

III. MAIN OUTSTANDING ISSUE

• 19. 

  Time neutrality of the EIT Regulation 7 : In Coreper, the Presidency explained that it has practically abolished the time neutrality of the EIT Regulation by making reference to the budget period 2021-2027 in Articles 3 and 20 of its compromise proposal, as well as referring to Horizon Europe in the context of the partnership approach. For the Presidency, this should have catered for the concerns of the Member States.

• 20. 

  It became nevertheless clear that the above-mentioned changes introduced by the Presidency did not go far enough for some Member States. A change suggested by the German delegation in Article 27 to abolish the time neutrality by introducing a clear period for the applicability of the EIT Regulation received broad support. This change would imply that the EIT

  Regulation would no longer be applicable beyond 2027.

• 21. 

  The Presidency proposed to change all references to the Framework Programme for Research and Innovation into references to Horizon Europe and indicated that it would reflect on

  introducing a review clause in the Regulation, underlining the need for extensive and thorough revision of the Regulation before the next MFF, to cater for the concerns of Member States on the issue of time neutrality.

• 22. 

  The changes mentioned above in paragraphs 17 and 21 can be found in Articles 2(2), 2(7),

  2(8), 3, 4(1), 4(2), 6, 8, 9(1), 9(2), 10, 11(2), 16(1a), 18(2), 19(2), 20(1) and 22(2) of the Annex. Compared to the Presidency compromise text submitted to Coreper 8 , these changes are indicated in the annex in bold underline for new text and in strikeout for deleted text.

• 23. 

  Following the discussion, Coreper decided to forward the text in the annex to the Council

  (Competitiveness) for its meeting on 28-29 November 2019, with the agreed changes as indicated in the annex and with the main outstanding issue as indicated above in Chapter III.

7 AT, CY, CZ, DE, DK, EL, ES, LV, LT, MT, PL, PT, SI, SK: scrutiny relating to time neutrality of the EIT Regulation.

8 14023/1/2019 REV1.

• 24. 

  Austria announced that it will submit a statement on Article 2(8) (definition of the Regional Innovation Scheme).

• 25. 

  The Commission reserves its position on the entire compromise proposal.

IV. CONCLUSION

• 26. 

  The Council is invited to adopt the partial general approach as set out in the annex to the present note.

ANNEX

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on the European Institute of Innovation and Technology (recast)

(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union , and in particular

Article 173(3) thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Economic and Social Committee 9 ,

Having regard to the opinion of the Committee of the Regions 10 ,

Acting in accordance with the ordinary legislative procedure,

Whereas:

HAVE ADOPTED THIS REGULATION:

9 OJ C […], […], p. […].

10 OJ C […], […], p. […].

Article 1

Subject matter

• 1. 

  A European Institute of Innovation and Technology (‘EIT’) is established.

Article 2

Definitions

For the purpose of this Regulation, the following definitions shall apply:

• (1) 

  ‘innovation’ means the process, including its outcome, by which new ideas respond to societal, environmental or economic needs and demand and generate new products, processes, services or business and organisational models that are successfully introduced into an existing market or that are able to create new markets and that provide value to society;

• (2) 

  ‘Knowledge and Innovation Community’ (KIC) means large-scale European partnership as referred to in the applicable Union Framework Programme for Research and Innovation

  Horizon Europe, of higher education institutions, research organisations, companies and other stakeholders in the innovation process in the form of a strategic network, regardless of its precise legal form, based on joint mid- to long-term innovation planning to meet the EIT challenges and contribute to attaining the objectives established under the framework programme for research and innovation Horizon Europe;

• (3) 

  ‘partner organisation’ means any legal entity which is a member of a KIC and may include, in particular, higher education institutions, vocational education and training providers, research organisations, public or private companies, financial institutions, regional and local

  authorities, foundations and non-profit organisations; (4) ‘research organisation’ means any public or private legal entity which undertakes research or

  technological development as one of its main objectives;

• (5) 

  ‘higher education institution’ means a university or any type of higher education institution which, in accordance with national legislation or practice, offers degrees and diplomas in

  particular at masters or doctoral level, irrespective of its denomination in the national context;

• (6) 

  ‘EIT Community’ means the EIT and the active community of all individuals and legal entities which benefited or benefit from the EIT support or financial contribution;

• (7) 

  ‘Strategic Innovation Agenda’ (‘SIA’) means an act setting out the priority fields and the strategy of the EIT for future initiatives, its capacity to generate the best innovation addedvalue, objectives, key actions, its mode of operation, expected results and resources needed covering the respective Union Framework Programme for Research and Innovation Horizon Europe and the MFF;

• (8) 

  ‘Regional Innovation Scheme’ (‘RIS’) means scheme fostering knowledge triangle integration and the innovation capacity of countries, in particular by attracting and integrating new

  partners into the KICs;

(8a) Member States' Representatives Group means a group of representatives from Member States and associated countries that is informed of the performance, achievements and activities, in

particular on results of monitoring and evaluation, of the EIT and the KICs and gives advice on strategically important issues to, and shares experience with, them.

 (9) ‘Stakeholder Forum’ means a platform open to representatives of Union institutions, national, regional and local authorities, organised interests and individual entities from business, higher education, research, associations, civil society and cluster organisations, as well as other

interested parties from across the knowledge triangle; (10) ‘KIC business plan’ means a document describing the objectives, the ways to achieve them

and the expected results of the KIC for the relevant period, as well as the planned KIC addedvalue activities and the related financial needs and resources and is annexed to the grant agreement;

• (11) 

  ’KIC added-value activities’ means activities carried out by partner organisations in accordance with the KIC business plan, contributing to the integration of the knowledge triangle of higher education, research and innovation, including the establishment,

  administrative and coordination activities of the KICs, and contributing to the overall objectives of the EIT;

• (12) 

  ‘memorandum of co-operation’ means an agreement between the EIT and a KIC, without any financial contribution from the EIT, aimed at keeping a KIC as an active member of the EIT

Community after the end date of the framework partnership agreement, and which may

includes the conditions for access to EIT competitive calls for some specific activities;

• (13) 

  ‘financial sustainability’ means a capacity of a KIC to finance its knowledge triangle activities independently of contributions from the EIT.

Article 3

Mission and objectives 11

The EIT’s mission is to contribute to sustainable Union economic growth and competitiveness by reinforcing the innovation capacity of all Member States and the Union in order to address major challenges faced by the society. It shall do this by promoting synergies, integration and cooperation among higher education, research and innovation of the highest standards, including by fostering entrepreneurship, thereby strengthening the innovation ecosystems in an open and transparent manner.

For the budget period of 2021-2027, the EIT shall contribute to deliver on the general and specific objectives of the Union framework programme for research and innovation Horizon Europe taking fully into account the strategic planning.

Article 4

SIA 12

• 1. 

  The SIA shall define the priority fields and strategy for the EIT for the seven-year period concerned, in line with the objectives and priorities of the Union framework programme for research and innovation Horizon Europe, and shall include an assessment of its socioeconomic impact and its capacity to generate the best innovation added-value. The SIA shall be aligned with reporting, monitoring and evaluation and other requirements of the Union framework programme Horizon Europe and shall take into account the results of the monitoring and evaluation of the EIT as referred to in Article 19.

11 BG, EE, SI: scrutiny

12 FR, SI: scrutiny

• 2. 

  The SIA shall take into account the strategic planning of the Union framework programme for research and innovation Horizon Europe ensuring coherence with the challenges of that

  programme, as well as complementarity with the EIC established under Horizon Europe, and shall establish and foster appropriate synergies and complementarities between the EIT activities and other relevant Union, national and regional programmes supporting research and innovation, education and skills development, sustainable and competitive industry, entrepreunership, and regional development.

• 3. 

  The SIA shall include an estimate of financial needs and sources in view of the future operation, long-term development and funding of the EIT. It shall also contain an indicative financial plan covering the period of respective MFF.

• 4. 

  The EIT shall submit its contribution to the Commission’s proposal on the SIA.

• 5. 

  Acting on the proposal from the Commission, the European Parliament and the Council shall adopt the SIA in accordance with Article 173(3) of the Treaty on the Functioning of the

  European Union.

Article 5

EIT Governance 13

• 1. 

  The bodies of the EIT shall be:

  (a) a Governing Board composed of high-level members experienced in education, research, innovation and business. It shall be responsible for steering the activities of the EIT, for the selection, designation, financing, monitoring and evaluation of the KICs, and for all other strategic decisions;

13 HU: scrutiny

(b) an Executive Committee composed of selected members and the Chairperson of the Governing Board. It shall assist the Governing Board in the performance of its tasks and prepare the Governing Board meetings in cooperation with the Director;

(c) a Director, appointed by the Governing Board, who shall be the legal representative of the EIT and responsible for the implementation of Governing Board decisions, the EIT operations and day-to-day management;

(d) an Internal Auditing Function, operating in complete independence and in compliance with the relevant international standards, 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.

1a. A Member States' Representatives Group is composed of one representative from each

Member State and associated country. It shall give advice to the Governing Board and the Director on strategically important issues.

• 2. 

  The detailed provisions regarding the EIT governance are set out in the Statutes of the EIT, annexed to this Regulation.

Article 6

Tasks

In order to achieve its mission and objectives, the EIT shall in particular:

(a) identify, in accordance with the SIA, its main priorities and activities, and implement these in accordance with the applicable rules and provisions of the Union framework programme for research and innovation Horizon Europe;

(b) ensure openness to and raise awareness among potential new partner organisations and encourage their participation in its activities across the Union, including through the RIS, by building on existing networks of information and structures;

(c) select and designate KICs in the priority fields in accordance with Article 9 and define their rights and obligations by framework partnership agreements and grant agreements, supervise and provide them with appropriate support and strategic guidance, by appropriate quality

control measures, and closely monitor on an annual basis and periodically evaluate their activities, and take corrective measures when appropriate;

(d) ensure an appropriate level of coordination and facilitate communication and thematic cooperation between the KICs and launch calls for cross-KIC activities and shared services;

(e) strengthen the promotion outside the EIT Community of EIT-labelled degrees and diplomas which are awarded by participating higher education institutions and extend them to lifelong learning programmes;

(f) promote the dissemination of best practices for the integration of the knowledge triangle, including among KICs and across the Union inter alia through the EIT RIS, in order to

develop a common innovation and knowledge transfer culture; (g) foster excellence in higher education, research and innovation, in particular by promoting the

KICs as excellent innovation partners;

(h) promote multidisciplinary approaches to innovation, including the integration of technological, social and non-technological solutions, organisational approaches and new business models;

(i) ensure complementarity and synergy between EIT activities and other Union programmes, where appropriate;

(j) organise regular meetings of a Stakeholder Forum to inform about the activities of the EIT, its experiences, best practices and contribution to Union innovation, research and education

policies and objectives, as well as other Union policies and objectives when relevant, and to allow stakeholders to express their views;

(k) organise meetings of a Member States’ Representatives Group, at least twice a year, independently from the meetings of the Stakeholder Forum. The Member States’

Representatives Group shall also facilitate appropriate synergies and complementarities between EIT and KIC activities with national programmes and initiatives, including the potential national co-financing of KIC activities;

(l) design and coordinate support actions undertaken by the KICs for the development of entrepreneurial and innovation capacity of higher education institutions and their integration in innovation ecosystems.

Article 7

KICs

• 1. 

  KICs shall in particular undertake:

  (a) innovation activities and investments with European added value, including facilitating the creation of innovative start-ups and development of innovative businesses in

  complementarity with the EIC and InvestEU, fully integrating the higher education and research dimensions to attain a critical mass and stimulating the dissemination and exploitation of results;

  (b) innovation-driven research, experimentation, prototyping and demonstration in areas of key economic, environmental and societal interest and drawing on the results stemming from Union and national research, with the potential to strengthen the

  Union’s competitiveness at international level and find solutions for the major challenges faced by European society;

  (c) education and training activities in particular at masters and doctoral level, as well as professional training courses, in areas with the potential to meet future European socioeconomic needs and which expand the Union’s talent base, promote the development of innovation-related skills, the improvement of managerial and entrepreneurial skills and the mobility of researchers and students, and foster knowledge-sharing, mentoring and networking among the recipients of EIT education and training activities, including

  EIT-labelled ones;

  (d) outreach activities and the dissemination of best practices in the field of innovation with a focus on development of cooperation between higher education, research and

  business, including the service and financial sectors;

  (e) to seek synergies and complementarities between KIC activities and existing European, national and regional programmes, and cooperate with other European Partnerships

  where appropriate;

  (f) to mobilise funds from public and private sources. They shall in particular seek to raise an increasing proportion of their budget from private sources and from income

  generated by their own activities, in accordance with Article 17.

• 2. 

  Without prejudice to the framework partnership agreements and grant agreements between the EIT and the KICs, the KICs shall have substantial autonomy to define their internal

  organisation and composition, as well as their agenda and working methods, as long as these result in progress towards achieving the KICs' and the EIT's objectives, while taking into account the strategic plan and the strategic directions of the EIT set out in the SIA and by the Governing Board. In particular, KICs shall: 14

  (a) establish internal governance arrangements which reflect the knowledge triangle of higher education, research and innovation;

  (b) ensure and promote their openness through clear and transparent accession criteria, including through open calls, to all potential new partner organisations across the Union that add value to the partnership; 15

  (c) function in an open and transparent way;

  (d) establish and implement the KIC business plans;

  (e) establish and implement strategies for achieving financial sustainability.

• 3. 

  The relationship between the EIT and each KIC shall be based on framework partnership agreements, grant agreements or, subject to the provisions of Article 11(4), memoranda of cooperation.

14 BG: scrutiny

15 CZ, LT, LV, MT, PT, SI, SK: scrutiny

Article 8

Rules for participation and dissemination

The rules for participation and dissemination of the Union framework programme for research and innovation Horizon Europe shall apply. By way of derogation from those rules:

(a) the minimum conditions to form a KIC are set out in Article 9(3) and (4) of this Regulation;

(b) specific rules on ownership, access rights, exploitation and dissemination may apply for KIC added-value activities.

Article 9

Selection of KICs

• 1. 

  A partnership shall be selected and designated by the EIT to become a KIC following a competitive, open and transparent procedure. The conditions and criteria of the Union framework programme for research and innovation Horizon Europe, as well as for the selection of European partnerships, shall apply. The EIT Governing Board may further specify those criteria, by adopting and publishing criteria for the selection of KICs based on the principles of excellence and innovation relevance.

• 2. 

  The EIT shall launch the selection and designation of KICs according to the priority fields and time schedule defined in the SIA, taking into account the priorities as defined in the strategic

  planning of the applicable Union framework programme for research and innovation Horizon Europe.

• 3. 

  The minimum condition to form a KIC is the participation of at least three independent partner organisations, established in at least three different Member States.

• 4. 

  In addition to the condition set out in paragraph 3, at least two thirds of the partner organisations forming a KIC shall be established in the Member States. At least one higher education institution, one research organisation and one private company shall be part of each KIC.

• 5. 

  The EIT shall adopt and publish criteria and procedures for financing, monitoring and evaluating the activities of the KICs prior to the launching of the selection procedure for new KICs. The Member States’ Representatives Group shall be promptly informed of them.

Article 10

Principles for the evaluation and monitoring of KICs

The EIT shall, on the basis of indicators and monitoring provisions set out, inter alia, in the Union framework programme for research and innovation Horizon Europe and in the SIA, and in close cooperation with the Commission, organise continuous monitoring and periodic external evaluations of the output, results and impact of each KIC. In the context of such monitoring and evaluation, the EIT shall monitor KICs progress towards financial sustainability, cost-efficiency and openness to new members. The results of such monitoring and evaluations shall be reported to the European Parliament and to the Council and shall be made public.

Article 11

Duration, continuation and termination of framework partnership agreement

• 1. 

  By way of derogation from Article 130(4)(c) of the Financial Regulation, the EIT may establish a framework partnership agreement with a KIC for an initial period of seven years.

1.a Based on the annual monitoring of the KICs, in accordance with Article 10, the EIT under the supervision of the Governing Board shall prepare interim reviews of the KICs performance

and activities covering the first three years of the framework partnership agreement and, in the

case of extension, three years following its extension.

• 2. 

  Subject to positive performance, the interim review and the outcome of a comprehensive assessment with support of external experts before the expiry of the initial period of seven years, and after consulting with the Member States' Representatives Group, the Governing Board may decide to extend the framework partnership agreement with a KIC beyond the initial period for another period of a maximum of seven years or to discontinue the EIT’s financial contribution and not to extend the framework partnership agreement. The Governing Board shall take into account in particular the criteria of the applicable Union framework programme for research and innovation Horizon Europe for implementation, monitoring and evaluation of the European Partnerships, the achievement of the goals set by the KIC itself, the KIC’s coordination efforts with other relevant research and innovation initiatives,

  achieved level of financial sustainability of a KIC, its capacity to ensure openness to new members and its achievement in attracting new members, within the limits of the Union financial contribution referred to in Article 20, the EU added value and relevance with regard to the objectives of the EIT.

• 3. 

  In the event that the monitoring, the interim reviews or the comprehensive assessment of a

  KIC show inadequate progress in areas referred to in Article 10 or lack of European added value, the Governing Board shall take appropriate corrective measures, including the reduction, modification or withdrawal of the EIT’s financial contribution or the termination of the framework partnership agreement.

• 4. 

  Subject to the outcome of a final review before the expiry of the extended framework partnership agreement, the EIT may conclude a memorandum of cooperation with a KIC. Article 12

Degrees and diplomas

• 1. 

  Degrees and diplomas relating to the higher education activities referred to in point (c) of

  Article 7(1) shall be awarded by participating higher education institutions in accordance with national rules and accreditation procedures. The framework partnership agreements and grant agreements between the EIT and the KICs shall provide that these degrees and diplomas may also be labelled EIT degrees and diplomas.

• 2. 

  The EIT shall encourage participating higher education institutions to:

  (a) award joint or multiple degrees and diplomas, reflecting the integrated nature of the KICs. However, these may also be awarded by a single higher education institution;

  (b) disseminate best practices on horizontal issues;

  (c) take into account:

  (i) Union action undertaken in accordance with Articles 165 and 166 of the Treaty;

  (ii) action undertaken in the context of the European Higher Education Area.

Article 13 16

Operational independence of the EIT and consistency with Union, Member State or

intergovernmental action

• 1. 

  The EIT shall carry out its activities independently of national authorities and external pressures, while being consistent through coordination with other action and instruments to be implemented at Union level, in particular in the fields of higher education, research and innovation.

16 DK, SI: scrutiny

• 3. 

  The EIT shall also seek synergies and complementarities by taking appropriate account of policies and initiatives at regional, national and intergovernmental levels in order to make use of best practices, well established concepts and existing resources.

Article 14

Legal status

• 1. 

  The EIT shall be a Union body and shall have legal personality. In each of the Member States, it shall enjoy the widest possible legal capacity accorded to legal persons under national

  legislation. In particular, it may acquire or dispose of movable and immovable property and be a party to legal proceedings.

• 2. 

  Protocol No 7 on the Privileges and Immunities of the European Union shall apply to the EIT.

Article 15

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. The Court of Justice shall have jurisdiction pursuant to any arbitration clause contained in a contract concluded by the EIT.

• 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 shall have jurisdiction in any dispute relating to compensation for such damage.

• 4. 

  Any payment by the EIT for covering 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.

• 5. 

  The Court of Justice shall have jurisdiction in actions brought against the EIT under the conditions provided for in Articles 263 and 265 of the Treaty.

Article 16

Transparency and access to documents

• 1. 

  The EIT and the KICs shall ensure that their activities are conducted with a high level of transparency. In particular, the EIT and the KICs shall set up an accessible, free website providing information about their activities and opportunities they provide.

1.a Detailed information on the monitoring and evaluation processes and results from all calls for proposals issued by EIT or its KICs is to be made available timely and made accessible in the common database of the Union framework programme for research and innovation Horizon Europe.

• 2. 

  The EIT shall make public its rules of procedure, its specific financial rules referred to in

  Article 22(1) and the detailed criteria for the selection of the KICs referred to in Article 9 before issuing calls for proposals for the selection of the KICs.

• 3. 

  The EIT shall make public without delay its single programming document and consolidated annual activity report referred to in Article 18.

• 4. 

  Without prejudice to paragraphs 5 and 6, the EIT shall not divulge to third parties confidential information it has received for which confidential treatment has been requested and is

  justified.

• 5. 

  The members of the EIT bodies shall be subject to the confidentiality requirement referred to in Article 339 of the Treaty.

  The information gathered by the EIT in accordance with this Regulation shall be subject to Regulation (EU) 2018/1725 of the European Parliament and of the Council 17 .

• 6. 

  Regulation (EC) No 1049/2001 i of the European Parliament and of the Council 18 shall apply to the documents held by the EIT.

• 7. 

  Council Regulation No 1 of 15 April 1958 19 shall apply to the EIT . The translation services required for the functioning of the EIT shall be provided by the Translation Centre for bodies of the European Union, set up by Council Regulation (EC) No 2965/1994 i 20 .

Article 17

Financing of the KICs

• 1. 

  The KICs shall be financed, in particular, from the following sources:

(a) contributions from partner organisations, forming a substantial source of funding;

(b) voluntary contributions from Member States, associated countries or third countries or public authorities within them;

(c) contributions from international bodies or institutions;

(d) revenue generated by the KICs’ own assets and activities and royalties from intellectual property rights;

17 Regulation (EU) 2018/1725 of the European Parliament and of the Council of 23 October

2018 on the protection of natural persons with regard to the processing of personal data by the Union institutions, bodies, offices and agencies and on the free movement of such data, and repealing Regulation (EC) No 45/2001 i and Decision No 1247/2002/EC.(OJ L 295, 21.11.2018, p. 39).

18 Regulation (EC) No 1049/2001 i of the European Parliament and of the Council of 30 May

2001 regarding public access to European Parliament, Council and Commission documents (OJ L 145, 31.5.2001, p. 43).

19 Council Regulation No 1 of 15 April 1958 determining the languages to be used by the

European Economic Community (OJ 17, 6.10.1958, p. 385/58). 20 Council Regulation (EC) No 2965/1994 i of 28 November 1994 setting up a Translation

Centre for bodies of the European Union (OJ L 314, 7.12.1994, p. 1).

(e) capital endowments;

(f) bequests, donations and contributions from individuals, institutions, foundations or any other bodies established under national law;

(g) the financial contribution from the EIT;

(h) financial instruments, including those funded from the general budget of the Union.

• 2. 

  The modalities for accessing funding from the EIT shall be defined in the financial rules of the EIT referred to in Article 22(1).

• 3. 

  Budgetary commitments for actions extending over more than one financial year may be broken down over several years into annual instalments, subject to adequate monitoring of estimated financial needs of the KICs to be established on an annual basis.

• 4. 

  The EIT financial contribution to the KICs may cover up to 100 % of the total eligible costs of KIC added-value activities in the initial stages of the KIC life. Such contribution shall

gradually decrease over time in compliance with the funding rates defined in the SIA.

• 5. 

  The KICs or their partner organisations may apply for Union financial contribution, in particular in the framework of Union programmes and funds, in accordance with their respective rules. In that case, such contribution shall not cover the same costs already funded under another Union programme.

• 6. 

  Contributions from partner organisations to the financing of the KICs shall be determined in accordance with the funding rates refered to in paragraph 4 of this Article and reflect the KICs strategy for achieving financial sustainability.

• 7. 

  The EIT shall establish a performance-based allocation mechanism for granting its financial contribution to the KICs. It shall include assessing the KICs’ business plans and performance as measured by continuous monitoring in accordance with Article 10 and as described in the SIA.

Article 18

Programming and reporting

• 1. 

  The EIT shall adopt a single programming document based on the SIA, in accordance with its financial rules, containing the following:

(a) a statement of the major priorities and planned initiatives of the EIT and the KICs;

(b) an estimate of financing needs and sources;

(c) appropriate indicators for monitoring the KICs and EIT activities using an impactoriented approach;

(d) other components as laid down in its financial rules.

• 2. 

  The EIT shall adopt a consolidated annual activity report, which shall include comprehensive information on the activities conducted by the EIT and the KICs during the preceding

  calendar year and on the EIT’s contribution to the objectives of the Union framework programme for research and innovation Horizon Europe, and to the Union innovation, research and education policies and objectives. It shall also assess the results with respect to the objectives, indicators and timetable set, the risks associated with the activities carried out, the use of resources and the general operation of the EIT. The consolidated annual activity report shall include further comprehensive information in accordance with the EIT’s financial rules.

Article 19 21

Monitoring and evaluation of the EIT

• 1. 

  The EIT shall ensure that its activities, including those managed through KICs, shall be subject to continuous and systematic monitoring and periodic independent evaluation in accordance with its financial rules, to ensure both the highest quality of outcome, scientific excellence and the most efficient use of resources. The outcomes of the monitoring and of the evaluations shall be made public.

• 2. 

  The Commission shall provide for evaluations of the EIT with the assistance of external independent experts selected on the basis of a transparent process in accordance with its financial rules. Those evaluations shall examine how the EIT fulfils its mission and

  objectives, cover all activities of the EIT and the KICs and assess the European added value of the EIT, the impact across the Union, openness, effectiveness, sustainability, efficiency and relevance of the activities pursued and their coherence and/or complementarity with relevant national and Union policies, including synergies with other parts of the Union framework programme for research and innovation Horizon Europe. They shall take into account the views of stakeholders, at both European and national level and feed into the Commission programme evaluations provided for in the Union framework programme for research and innovation Horizon Europe.

• 3. 

  The Commission may carry out further evaluations of themes or topics of strategic relevance, with the assistance of external independent experts selected on the basis of a transparent

  process, to examine the progress made by the EIT towards the objectives set, identify the factors contributing to the implementation of the activities and identify best practices. By carrying out those further evaluations, the Commission shall fully consider the administrative impact on the EIT and the KICs.

21 DE, DK, MT, PT, SI; scrutiny

• 4. 

  The Commission shall communicate the results of the evaluations, accompanied by its observations, to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. The Governing Board shall take due account of the findings of evaluations in the programmes and operations of the EIT.

Article 20

EIT budget

• 1. 

  The revenue of the EIT shall consist of a contribution from the Union. The revenue of the EIT may also include a contribution from other private and public sources.

  The Union contribution shall be provided through a financial contribution from the Union framework programme for research and innovation Horizon Europe set at [EUR 3 000 000 000] during the period from 1 January 2021 to 31 December 2027. Additional financial resources from other Union programmes may be received by the EIT.

• 2. 

  The EIT financial contribution to the KICs shall be provided from the Union contribution referred in paragraph 1.

Article 21

Preparation and adoption of the annual budget

• 1. 

  The content and structure of the budget of the EIT shall be established in accordance with its financial rules. The expenditure of the EIT shall include the staff, administrative,

  infrastructure and operational expenses. Administrative expenditure shall be kept to a minimum. Revenue and expenditure shall be in balance.

• 2. 

  The Director shall draw up an estimate of the revenue and expenditure of the EIT for the following financial year and shall forward it to the Governing Board.

• 3. 

  The Governing Board shall adopt the draft estimate of EIT’s revenue and expenditure, accompanied by a draft establishment plan, and forward them as a part of the single

  programming document by the date specified in the EIT’s financial rules to the European Parliament, the Council and the Commission.

• 4. 

  The Governing Board shall adopt 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.

• 5. 

  The Governing Board shall, as soon as possible, notify the budgetary authority of its intention to implement any project which may have significant financial implications for the funding of the EIT budget, in particular any projects relating to property such as the rental or purchase of buildings. It shall inform the Commission thereof.

• 6. 

  Any substantial modification of the budget shall follow the same procedure.

Article 22

Implementation and control of the budget

• 1. 

  The EIT shall adopt its financial rules in accordance with Article 70(3) of the Financial

  Regulation. Appropriate consideration shall be given to the need for adequate operational flexibility in order to enable the EIT to achieve its objectives and attract and retain private sector partners.

• 2. 

  The financial contribution to the EIT from the Union framework programme for research and innovation Horizon Europe and other Union programmes shall be implemented in

  accordance with the rules of those programmes.

• 3. 

  The Director shall implement the budget of the EIT.

• 4. 

  The accounts of the EIT shall be consolidated with the Commission’s accounts.

Article 23

[Protection of the financial interests of the Union

• 1. 

  With a view to combating fraud, corruption and other illegal acts, Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council 22 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) 23 . The Governing Board shall formalise this accession and adopt the necessary measures to help OLAF carry out internal investigations.]

Article 24

Winding up of the EIT

In the event of the EIT being wound up, its liquidation shall take place under the supervision of the Commission in accordance with the applicable laws. The framework partnership agreements or grant agreements with the KICs shall lay down the appropriate provisions in such situation.

Article 25

Statutes

The Statutes of the EIT are set out in Annex I.

22 Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of

11 September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and repealing Regulation (EC) No 1073/1999 i of the European Parliament and of the Council and Council Regulation (Euratom) No 1074/1999 (OJ L 248, 18.9.2013, p. 1).

23 OJ L 136, 31.5.1999, p. 15.

Article 26

Repeal

Regulation (EC) No 294/2008 i is repealed.

References to the repealed Regulation shall be construed as references to this Regulation and shall be read in accordance with the correlation table in Annex III.

Article 27

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.

Done at Brussels,

For the European Parliament For the Council

The President The President

ANNEX

ANNEX I

Statutes of the European Institute of Innovation and Technology

SECTION 1

COMPOSITION OF THE GOVERNING BOARD

 24

• 1. 

  The Governing Board shall, when executing its responsibilities, act under the supervision of the Commission in implementing the EIT's mission and objectives.

  The Governing Board shall be composed of 15 members, appointed by the Commission, providing a balance between those with experience in business, higher education and research. The term of office of the members of the Governing Board shall be four years. The Commission may extend that term of office once by a two-year period on the proposal of the Governing Board.

  Whenever necessary, the Governing Board shall submit to the Commission a shortlist of candidates for the purpose of appointment of a new member or members. The shortlisted candidates shall be selected on the basis of the outcome of a transparent and open procedure initiated by the EIT.

  The Commission shall have regard to the balance between higher education (including vocational education and training), research, innovation and business experience as well as to gender and geographical balance and an appreciation of the education, research and innovation environment across the Union.

  The Commission shall appoint the member or members and inform the European Parliament and the Council of the selection process and of the final appointment of those members of the Governing Board.

24 FR, HU: scrutiny

In the event that a member is unable to complete his/her term of office, a substitute member shall be appointed by the same procedure as the incapacitated member in order to complete the latter's term of office. A substitute member who has served for a period of less than two years may be reappointed by the Commission for an additional period of four years at the request of the Governing Board.

The Commission shall appoint three additional members of the Governing Board to reach the number of 15 within eighteen months of entry into force of this Regulation. The Board members appointed before the entry into force of this Regulation shall complete their nonrenewable term of office.

In exceptional and duly justified circumstances, in particular in order to maintain the integrity of the Governing Board, the Commission may, on its own initiative, terminate the term of office of a member of the Board.

• 2. 

  The Governing Board members shall act in the interests of the EIT, safeguarding its goals and mission, identity, autonomy and coherence, in an independent and transparent way.

SECTION 2

RESPONSIBILITIES OF THE GOVERNING BOARD

• 1. 

  The Governing Board, in exercising its responsibility for steering and monitoring the activities of the EIT, shall take strategic decisions, in particular:

  (a) adopt the EIT’s contribution to the Commission’s proposal on the EIT's Strategic Innovation Agenda (SIA);

  (b) adopt the EIT’s single programming document, budget, annual accounts and balance sheet and consolidated annual activity report;

(c) adopt sound criteria and clear and transparent procedures for performance-based financing of the KICs, including the decision on the maximum allocation of EIT funding contribution to them, in view of implementing the relevant KIC business plan and achieving the objectives described in the SIA and in accordance with Article 10 of this Regulation, including their progress in achieving financial sustainability;

(d) adopt the selection procedure of the KICs, in accordance with Article 9 of this

Regulation and the SIA;

(e) select and designate a partnership as a KIC or withdraw the designation;

(f) authorise the Director to prepare, negotiate and conclude framework partnership agreements and grant agreements with the KICs;

(fa) authorise the Director to prepare and negotiate Memoranda of Cooperation with the

KICs and, after having examined the negotiated Memoranda, authorise the Director to conclude them;

(g) authorise the Director to extend framework partnership agreements with the KICs beyond the period initially set, subject to the satisfactory outcome of the comprehensive assessment, as described in the SIA and in accordance with Article 10 of this

Regulation, before the expiry of this period in accordance with Article 11;

(h) authorise the Director to prepare, negotiate and conclude grant agreements with other legal entities;

(i) adopt effective, efficient, transparent and continuous monitoring and evaluation procedures, including a sound set of indicators in accordance with Articles 10, 11, 18 and 19 of this Regulation, and supervise their implementation by the Director;

(j) take appropriate corrective measures on underperforming KICs, including the reduction, modification or withdrawal of the EIT’s financial contribution to the KICs or the

termination of the framework partnership agreements with them, based on the monitoring and the assessment results, in accordance with the objectives of the EIT and the KICs and Articles 10, 11 and 17 of this Regulation;

(ja) encourage the KICs to adopt operational models for openness towards new partner organisations;

(k) promote the EIT across the Union and globally, so as to raise its attractiveness, and for this purpose authorise the Director to sign memoranda of understanding with Member States, associated countries or third countries;

(l) decide on the design and coordination of support actions undertaken by the KICs to broaden the impact of the EIT across the Union for the development of entrepreneurial and innovation capacity of higher education institutions, as well as vocational education and training institutions where approriate, and their integration in innovation

ecosystems, in order to reinforce the knowledge triangle integration.

• 2. 

  The Governing Board shall take other procedural and operational decisions necessary for the fulfilment of its tasks and the activities of the EIT, in particular:

  (a) adopt its rules of procedure, those for the Executive Committee, as well as the specific financial rules of the EIT;

  (aa) delegate specific tasks to the Executive Committee;

  (b) define appropriate fees for members of the Governing Board and of the Executive Committee, which shall be benchmarked against similar remuneration in the Member States;

  (c) adopt a procedure for selecting the members of the Executive Committee; (d) appoint the Director and if necessary extend his/her term of office or remove the Director from office, in accordance with Section 5;

  (e) appoint the Accounting Officer and the members of the Executive Committee;

  (f) adopt a code of good conduct regarding conflicts of interest;

  (g) establish, where appropriate, advisory groups which may shall have a defined objective, tasks and duration;

  (h) set up an Internal Auditing Function in accordance with EIT’s financial rules;

  (i) decide on the working languages of the EIT, taking into account existing principles on multilingualism and the practical requirements of its operations;

  (j) convene an annual senior-level meeting with the KICs;

  (k) report on KICs co-operation with other European partnerships.

• 3. 

  The Governing Board shall take decisions in compliance with the Staff Regulations of

Officials and the Conditions of Employment of Other Servants of the European Union, laid

down in Council Regulation (EEC, Euratom, ECSC) No 259/68 25 , relating to the EIT staff and

the conditions of its employment, in particular:

(a) adopt the implementing measures for giving effect to the Staff Regulations and the Conditions of Employment of Other Servants, in accordance with Article 110(2) of the Staff Regulations;

(b) exercise in accordance with point (c) the powers conferred by the Staff Regulations on the Appointing Authority and by the Conditions of Employment of Other Servants on the Authority Empowered to Conclude a Contract of Employment (the ‘appointing

authority powers’);

25 OJ L 56, 4.3, 1968, p. 1.

(c) adopt, in accordance with Article 110(2) of the Staff Regulations, a decision based on Article 2(1) of the Staff Regulations and Article 6 of the Conditions of Employment of Other Servants, delegating relevant appointing authority powers to the Director and

defining the conditions under which this delegation of powers can be suspended. The Director shall be authorised to sub-delegate those powers;

(d) adopt a decision to temporarily suspend, where exceptional circumstances so require, the delegation of the appointing authority powers to the Director and those subdelegated

by the latter and exercise them itself or delegate them to one of its members or to a staff member other than the Director.

SECTION 3

FUNCTIONING OF THE GOVERNING BOARD

• 1. 

  The Governing Board shall elect its Chairperson from among its members. The term of office of the Chairperson shall be two years, renewable once.

• 2. 

  The representative of the Commission shall participate in the meetings of the Governing

  Board, without the right to vote, but his/her agreement shall be required in accordance with paragraph 5. He/she shall have the right to suggest points on the agenda of the Governing Board.

• 3. 

  The Director shall participate in the meetings of the Governing Board, without the right to vote.

• 4. 

  The Governing Board shall adopt decisions by simple majority of members having a right to vote.

  However, decisions under points (a), (b), (c), (d), and (l) of Section 2(1) and points (d) and (i)

  of Section 2(2), as well as under paragraph 1 of this Section shall require a majority of two

  thirds of its members having the right to vote.

• 5. 

  Decisions of the Governing Board under points (c), (e), (g), (i) and (k) of Section 2(1), point (b) of Section 2(2) and point (a) of Section 2(3) shall require agreement of the Commission, expressed by its representative in the Governing Board. 26

5a. The Governing Board shall seek the opinion of the Member States' Representatives Group prior to decisions concerning the extension or termination of the framework partnership

agreements with the KICs in accordance with points (g) and (j) of Section 2(1), and on the conclusion of the Memorandum of Cooperation with a KIC in accordance with point (fa) of Section 2(1).

• 6. 

  The Governing Board shall meet in ordinary session at least four times a year and in extraordinary session when convened by its Chairperson or at the request of at least one third of all its members or the representative of the Commission.

SECTION 4

THE EXECUTIVE COMMITTEE

• 1. 

  The Executive Committee shall assist the Governing Board in the performance of its tasks.

• 2. 

  The Executive Committee shall consist of five members, 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 the Governing Board's members, providing a balance between those with experience in business, higher education and research. The term of office of the members of the Executive Committee shall be two years, renewable once.

• 3. 

  The Executive Committee shall prepare the meetings of the Governing Board in cooperation with the Director.

• 4. 

  The Governing Board may request the Executive Committee to supervise and monitor the implementation of decisions and recommendations of the Governing Board.

26 HU: scrutiny

• 5. 

  The Executive Committee shall prepare the discussion and adoption of the Governing Board on the draft EIT’s contribution to the Commission’s proposal on the SIA. In addition, the

  Executive Committee shall prepare the discussion of the Governing Board on the draft single programming document, the draft consolidated annual activity report, the annual budget and the draft annual accounts and the balance sheet before their submission to the Governing Board.

• 6. 

  Decisions of the Executive Committee shall be adopted on the basis of a majority of the members present. Each member shall have one vote.

• 7. 

  The representative of the Commission shall participate in the meetings of the Executive

  Committee, without the right to vote. The representative of the Commission shall have the right to suggest points on the agenda of the Executive Committee.

• 8. 

  The Director shall participate in the meetings of the Executive Committee, without the right to vote.

• 9. 

  The members of the Executive Committee shall act in the interests of the EIT, safeguarding its goals and mission, identity, autonomy and coherence, in an independent and transparent way. They shall regularly report to the Governing Board on the adopted decisions and tasks assigned to them by the Governing Board.

SECTION 5

THE DIRECTOR

• 1. 

  The Director shall be a person with expertise and high reputation in the areas where the EIT operates. The Director shall be a member of the EIT staff and shall be engaged as a temporary agent under Article 2(a) of the Conditions of Employment of Other Servants.

• 2. 

  The Director shall be appointed by the Governing Board from a list of candidates proposed by the Commission, following an open and transparent selection procedure. For the purpose of

  concluding the contract with the Director, the EIT shall be represented by the Chairperson of the Governing Board.

• 3. 

  The term of office of the Director shall be four years. The Governing Board, acting on a proposal from the Commission that takes into account its evaluation of the Director’s

  performance and the EIT’s future tasks and challenges, may extend that term of office once for a period of up to two years. A Director whose term of office has been extended may not participate in another selection procedure for the same post.

• 4. 

  The Director may be removed from office only upon a decision of the Governing Board acting on a proposal from the Commission.

• 5. 

  The Director shall be responsible for operations and for the day-to-day management of the

  EIT and shall be its legal representative. The Director shall be accountable to the Governing Board and report to it on an ongoing basis on the development of the EIT activities and all activities falling under his/her responsibility.

• 6. 

  The Director shall in particular:

  (a) organise and manage the activities of the EIT;

  (b) support the Governing Board and the Executive Committee in their work, provide the secretariat for their meetings and supply all information necessary for the performance of their duties;

  (c) support the Governing Board in preparing the EIT’s contribution to the Commission’s proposal on the SIA;

  (d) prepare the draft single programming document, the draft consolidated annual activity report and the draft annual budget for submission to the Governing Board;

(e) prepare and administer the KICs selection process and ensure that the various stages of that process are carried out in a transparent and objective manner, under the supervision of the Governing Board. A detailed report of the selection process shall be annexed to the consolidated annual activity report;

(f) prepare, negotiate and conclude, under the authorisation of the Governing Board, framework partnership agreements and grant agreements with the KICs;

(fa) prepare and negotiate Memoranda of Cooperation with the KICs and, subject to final approval by the Governing Board, conclude them in accordance with Section 2(1)fa of the Statutes;

(g) prepare, negotiate and conclude, with the agreement of the Governing Board, grant agreements with other legal entities;

(h) organise the meetings of the Stakeholder Forum and of the Member States'

Representatives Group and ensure effective communication with them, under the supervision of the Governing Board;

(i) sign, with the authorisation of the Governing Board, memoranda of understanding with Member States, associated or third countries with the aim to promote the EIT globally;

(j) ensure the implementation of effective monitoring, assessment and evaluation procedures relating to the performance of the KICs in accordance with Section 2.1 point (i), under the supervision of the Governing Board;

(k) be responsible for administrative and financial matters, in accordance with the principle of sound financial management, including the implementation of the EIT budget, taking due account of advice received from the Internal Auditing Function;

(l) submit the draft annual accounts and balance sheet to the Internal Auditing Function, and subsequently to the Governing Board;

(m) ensure that the obligations of the EIT with regard to the contracts and agreements it has concluded are met, under the supervision of the Governing Board;

(n) ensure effective communication with the Union's institutions, under the supervision of the Governing Board. In addition, inform the Member States' Representatives Group on the results of the monitoring, assessment and evaluation, and transmit the opinions of the Member States' Representatives Group to the Governing Board;

(o) act in the interests of the EIT, safeguarding its goals and mission, identity, autonomy and coherence, in an independent and transparent way.

• 7. 

  The Director shall perform any other tasks entrusted to him/her by the Governing Board and under its responsibility.

SECTION 5a

MEMBER STATES' REPRESENTATIVES GROUP

• 1. 

  The Member States' Representatives Group shall: a) give advice to and share experience with the EIT and the KICs; b) advice the Governing Board and the Director on strategically important issues; c) advice the Governing Board and the Director on the extension or termination of the framework partnership agreements with the KICs and on the conclusion of the Memorandum of Cooperation with a KIC, in accordance with Section 3(5a.).

• 2. 

  Member States' Representatives Group shall be regularly informed and gives views on the performance, achievements and activities of the EIT and the KICs, on the monitoring and evaluation results, the performance indicators and the corrective measures.

SECTION 6

STAFF OF THE EIT AND SECONDED NATIONAL EXPERTS

• 1. 

  The staff of the EIT shall consist of personnel employed directly by the EIT. The Staff

  Regulations, the Conditions of Employment of Other Servants and the rules adopted by agreement between the institutions of the Union for giving effect to them shall apply to the staff of the EIT .

• 2. 

  National experts may be seconded to the EIT for a limited period. The Governing Board shall adopt provisions enabling seconded national experts to work at the EIT and defining their

  rights and responsibilities.

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