Select Committee on European Scrutiny Thirtieth Report


12 EC and EURATOM research and development programmes from 2007


(26581)

8087/05

COM(05) 119





+ ADD 1

+ ADD 2

(i)  Draft Decision on the 7th Framework Programme of the European Community for research, technological development and demonstration and demonstration activities (2007-2013)

(ii)  Draft Decision on the 7th Framework Programme of the European Atomic Energy Community for nuclear research and training activities (2007-2011)

Commission staff working paper: impact assessment of the proposals for the 7th Framework Programmes

Commission staff working paper: simplification of the European Community's 7th Framework Programme

Legal base(i) Article 166 EC; co-decision; QMV

(ii) Article 7 Euratom; — ; unanimity

DepartmentTrade and Industry
Basis of considerationLetter of 22 May 2006
Previous Committee ReportHC 34-xvii (2005-06), para 3 (1 February 2006)
To be discussed in Council29-30 May 2006
Committee's assessmentPolitically important
Committee's decisionCleared, but further information awaited

Previous scrutiny

12.1 In 2005, the Commission proposed these drafts of Decisions to establish the EC's and Euratom's 7th Framework Programmes for research and technological development (R&D). The most striking feature of the draft EC Programme was the Commission's proposal that the budget for 2007-13 should be nearly €73 billion compared with the budget of €19.2 billion for the 6th EC Programme (2002-06). The Commission proposed that the budget for EURATOM's 7th Framework Programme should be €3.1 billion for 2007-11.

12.2 When we considered the draft Decisions in July 2005, we noted that the Government broadly supported the proposals and recognised the case for increasing the EC's expenditure on R&D. We put several questions to the Government and decided to keep the documents under scrutiny.[39]

12.3 We considered the Government's replies in October 2005 and retained the draft Decisions under scrutiny pending progress reports on the negotiations in the Council and receipt of the Science and Technology Committee's opinion on the proposals.[40]

12.4 We reported on that Committee's opinion in January.[41] Among its many thoughtful observations, the Science and Technology Committee said that, in principle, it supported a substantial increase in the funding for the 7th Framework Programme, but that the Structural and Cohesion Funds and some of the other EC programmes proposed for 2007-13 have the potential to be far more influential drivers of R&D in the private sector than the R&D Framework Programme.[42] The Committee also noted that the increase in the R&D budget proposed by the Commission was "always optimistic and perhaps was not expected to survive the heat of negotiations on the overall EU budget for the period".[43]

The Minister's letter of 22 May 2006

12.5 In his letter of 22 May, the Parliamentary Under-Secretary of State for Science and Innovation at the Department of Trade Industry (Lord Sainsbury of Turville) tells us that, in the light of the negotiations between the Council, the European Parliament and the Commission on the EU's total budget, it is likely that the combined budget for the EC's and EURATOM's 7th Framework Programmes will be about €54 billion, of which about €2.7 billion would be for EURATOM's Programme and the rest for the EC's. The Minister comments that:

"Although this represents a reduction from the Commission's original proposal … it is a significant increase on the budget for the 6th Framework Programme. It also fulfils the condition set in the European Council Conclusions in December which stated: 'EU funding for research should therefore be increased such that by 2013 the resources available are around 75% higher in real terms than in 2006'."

12.6 The Minister also tells us that the Austrian Presidency is aiming to achieve agreement on a General Approach on revised drafts of the Decisions at the meeting of the Competitiveness Council on 29-30 May. He attaches a note of the minor textual changes the Presidency will propose. He also tells us about the Presidency's proposed amendments to the allocation of the budget between the specific research programmes. The Minister draws attention, in particular, to the proposed 3% increase in the proportion of the budget to be allocated to the Co-operation programme.[44] The effect would be that the Co-operation programme would receive 65% of the budget, the proportion advocated by the Government.

12.7 Finally, the Minister promises us further progress reports.

Conclusion

12.8 The Minister has been assiduous in keeping us informed about the negotiations on the 7th R&D Framework Programmes. The size of the budgets is the only outstanding issue of importance. It now appears likely that the budgets will be agreed at the Council's meeting on 29-30 May and that the 7th EC Programme will be notable for a substantial increase in the funding available for research. We do not believe that there is a "right" figure for the EC research budget. We see no reason to object to the expected figure of about €51 billion or to the Presidency's proposals for minor amendments to the text. We are, therefore, now content to clear the draft Decisions from scrutiny. We should, however, be grateful for the further progress reports the Minister has offered to send us.





39   See HC 34-i (2005-06), para 21 (4 July 2005). Back

40   See HC 34-v (2005-06), para 18 (12 October 2005). Back

41   See headnote. Back

42   See HC 34-xvii (2005-06), para 3 (1 February 2006), Annex, paragraphs 4 and 10. Back

43   Ibid, paragraph 8. Back

44   The aim of the Co-operation programme would be to gain leadership in key scientific and technology areas by supporting co-operation between universities, industry, research centres and public authorities across Europe as well as with the rest of the world. The programme would have nine themes: health; food, agriculture and biotechnology; information and communication technologies; nanosciences, nanotechnologies, materials and new production technologies; energy; environment; transport; socio-economic sciences and the humanities; and security and space. Back


 
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