13.12.2010 1 Not legally binding

Public-Private Partnerships in Research at EU-Level

Seán O'Reagain

Acting Head of Unit

DG Research European Commission

13.12.2010 2 Not legally binding

PPPs under Seventh Framework Programme (FP7)

JTIs: a special funding scheme under FP7• Institutionalized PPPs based on Article 187 TFEU• When the scope of an RTD objective and the scale of

the resources involved could justify setting up a PPP• Five JTIs launched; EU contribution > €3 bn

Contractual PPPs under FP7• Consultation structures between Commission and

industry• Recovery Plan PPPs, Future Internet PPP and EIIs

under SET-Plan; EU contribution > €1.6 bn

13.12.2010 3 Not legally binding

PPPs Communication Action Plan

PPPs in research are dealt with separately:• Research outputs are “less predictable and tangible”• “… the Commission will consider all options in reviewing the

legal framework … to provide a simple and cost-efficient model, based on mutual understanding, true partnership and risk sharing”

• Three actions:1. A report including policy

recommendations2. A new framework for JTIs3. Participation of the EU in private law

bodies

13.12.2010 4 Not legally binding

Action 1: Policy Report

High-Level Industry Experts Final Report:• “Designing together the ‘ideal house’ for PPPs in

European research”

• Main Recommendations:“Seize the opportunity of the … review of the

Financial Regulation in recognising PPPs, including JTIs, as special bodies in order to develop tailor-made provisions for them”

“Move towards a more risk-tolerant and trust-based approach”

13.12.2010 5 Not legally binding

Action 2: New Framework for PPPs

Financial Regulation Revision - Commission Proposal:• PPPs recognized as potential recipients/managers of EU funds• Two new possibilities:

PPPs set-up by a Basic Act (Articles 53(1)(2)(e) and 185a FR) using a Model Financial Regulation: a set of principles necessary to ensure sound

financial management of EU funds

PPPs governed by Member States’ Private Law (Article 53(1)(2)(g) FR)

Work on other aspects of the PPPs architecture:• Governance• Risk-tolerant, trust-based approach and accountability• Staff regime• Rules of participation (especially funding rates and IPR)

13.12.2010 6 Not legally binding

Action 3: EU Participation in Private Law Bodies

Current approach• The Commission shall not, in principle, participate in private law

bodies in order to avoid risks such as:

Risk to the Commission’s image Financial risk/misuse of financial procedures Conflict of interests for officials concerned Criticism on recruitment policy “Captivity” Unfair competition with other entities

• Request of derogation to non-participation shall be considered: in cases where:

There is evidence of outstanding interest for the Institution Objectives pursued cannot be achieved by other means of co-operation

(such as by consultation or by funding)

Towards a revision of the current approach?

13.12.2010 7 Not legally binding

Next Steps

Commission Communication on Partnering in Research in 2011

Follow-up the Revision of the General Financial Regulation

Develop a Detailed Architecture for the ‘Ideal House’ for EU-Level PPPs