The aspects of the new framework the most likely to have a positive impact on private sector participation are streamlined and significantly simplified rules for participation, while streamlining per se will have a positive impact only if the joint rules will reduce the administrative burden of participating in EU programmes. The complexity and rigidity of rules applicable to current financial instruments make it less attractive for business to participate in EU-funded projects. The transaction costs of participation in EU programmes have grown completely out of proportion, with marginal costs of controls and administrative compliance often exceeding the marginal benefits. We therefore call for an overhaul of the administrative rules in the preparations for EU support to RDI post 2013, but simplification measures that can be achieved without the involvement of Council and Parliament must be implemented immediately. The Commission’s communication on simplification of the administrative framework from 2010 should serve as the basis for continued simplification, Significant progress has been made during the last year (in particular with respect to acceptance of methodologies for average personal cost calculations), but an overhaul of the entire administrative framework is warranted. In particular, there must be a shift from a control-based system to a trust-based system, with a potential shift from financial audits to more process- and result-based audits, without discouraging ambitious and risky research ventures (i.e., introducing risk-tolerance in evaluating projects). A reconsideration of the provisions on personal liability of EU officials would also work in this direction.
Other much desired simplification measures include:
- Introduction of a separate category for associated partners, which would facilitate formation and management of consortia.
- More flexibility in cost accounting and reporting, allowing for use of standard practices already used by beneficiaries.
- Adaptation of the Financial Regulation to better serve the purposes of Public Private Partnerships and JTIs, for example by not requiring these to have the status of a community body.
- Reduce the time-to-grant.
- The use of unified reporting rules and practices across all funded actions of the new Framework (unlike what the experience today demonstrates). The introduction of the Participants Portal is a move towards the right direction.
- The use of (realistic) flat rates for the calculation of indirect cost or of lump sums for entire projects or project components could simplify the financial management.
- Support and coordination actions need to have improved funding of the associated indirect cost (currently, 7% of the associated direct costs).
- Management costs associated with the negotiation of projects should be an eligible for reimbursement (within the project budget).
Another means of improving the attractiveness of participation for the private sector is to gear the focus of EU support towards areas of clear value-added for European companies, instead of only focusing on societal challenges. The emerging European Innovation partnerships could, if properly managed and supported by strong commitment from the private sector contribute significantly to achieving a more strategic and coherent approach.
The value of the NCP support organisations to the function of the Programme, also, cannot be underestimated and it is particularly important for “newcomers”. To that end the EC should continue exploiting such structures, while MS should ensure a sufficient local NCP thematic representation (e.g., NCP organisations with proven visibility and capacity in the agro-food sector, etc.).
Finally for the national calls we propose certain timeframe of the calls, the submission of the proposals, the evaluation, the financing and the control. The final payment should be done with the submission of the final report while the monitoring of the progress of the project should be performed by an independent body. The private organizations should have the possibility to participate to the projects without a limitation to the number of them.
The aspects of the new framework the most likely to have a positive impact on private sector participation are streamlined and significantly simplified rules for participation, while streamlining per se will have a positive impact only if the joint rules will reduce the administrative burden of participating in EU programmes. The complexity and rigidity of rules applicable to current financial instruments make it less attractive for business to participate in EU-funded projects. The transaction costs of participation in EU programmes have grown completely out of proportion, with marginal costs of controls and administrative compliance often exceeding the marginal benefits. We therefore call for an overhaul of the administrative rules in the preparations for EU support to RDI post 2013, but simplification measures that can be achieved without the involvement of Council and Parliament must be implemented immediately. The Commission’s communication on simplification of the administrative framework from 2010 should serve as the basis for continued simplification, Significant progress has been made during the last year (in particular with respect to acceptance of methodologies for average personal cost calculations), but an overhaul of the entire administrative framework is warranted. In particular, there must be a shift from a control-based system to a trust-based system, with a potential shift from financial audits to more process- and result-based audits, without discouraging ambitious and risky research ventures (i.e., introducing risk-tolerance in evaluating projects). A reconsideration of the provisions on personal liability of EU officials would also work in this direction. Other much desired simplification measures include: - Introduction of a separate category for associated partners, which would facilitate formation and management of consortia. - More flexibility in cost accounting and reporting, allowing for use of standard practices already used by beneficiaries. - Adaptation of the Financial Regulation to better serve the purposes of Public Private Partnerships and JTIs, for example by not requiring these to have the status of a community body. - Reduce the time-to-grant. - The use of unified reporting rules and practices across all funded actions of the new Framework (unlike what the experience today demonstrates). The introduction of the Participants Portal is a move towards the right direction. - The use of (realistic) flat rates for the calculation of indirect cost or of lump sums for entire projects or project components could simplify the financial management. - Support and coordination actions need to have improved funding of the associated indirect cost (currently, 7% of the associated direct costs). - Management costs associated with the negotiation of projects should be an eligible for reimbursement (within the project budget). Another means of improving the attractiveness of participation for the private sector is to gear the focus of EU support towards areas of clear value-added for European companies, instead of only focusing on societal challenges. The emerging European Innovation partnerships could, if properly managed and supported by strong commitment from the private sector contribute significantly to achieving a more strategic and coherent approach. The value of the NCP support organisations to the function of the Programme, also, cannot be underestimated and it is particularly important for “newcomers”. To that end the EC should continue exploiting such structures, while MS should ensure a sufficient local NCP thematic representation (e.g., NCP organisations with proven visibility and capacity in the agro-food sector, etc.). Finally for the national calls we propose certain timeframe of the calls, the submission of the proposals, the evaluation, the financing and the control. The final payment should be done with the submission of the final report while the monitoring of the progress of the project should be performed by an independent body. The private organizations should have the possibility to participate to the projects without a limitation to the number of them.