APPENDIX 3: EVIDENCE FROM THE UK GOVERNMENT
Letter dated 12 June 2007 from the Minister of
State for Science and Innovation at the Department of Trade and
Industry
I have previously written to you on 21 March and
11 May to update you on developments on the European Commission
proposal to establish a European Institute of Technology. I also
attended an oral evidence session with Sub-Committee G on 7 June,
when I updated the Committee on the Government's position on this
proposal. I feel that now would therefore be an appropriate point
in the process to further update you on the current state of affairs
with regard this draft proposal.
The Government's overall approach to the Commission
proposal has been one of cautious support: support for the Commission's
analysis of the innovation gap in Europe and endorsement of the
general objectives of the EIT in terms of integrating the 'knowledge
triangle' of education, research and innovation. The current EIT
proposal has a large measure of support across Europe, at the
highest political levels, and the European Parliament appear on
the whole to favour the proposal. The Government has sought to
work constructively with our partners to achieve an outcome which
improves the chances of the EIT becoming a useful addition to
the range of instruments available to support European Innovation
and competitiveness.
The Government is of the view that the EIT proposal
as amended during the course of negotiations in the Council Working
Group could enhance the innovation performance of Member States,
by linking up existing excellent organisations. It would focus
on strategic priority areas where given the nature and scale of
the innovation challenge, action at European level could generate
the 'critical mass' that could not be achieved by Members States
alone.
During the course of negotiations the concept of
the EIT has evolved substantially. In particular;
—It has moved away from a single, bricks-and-mortar
institutional model to one based on networks of existing organisations;
—There will be no independent degree-awarding
powers for the EIT which will remain the preserve of individual
institutions and the systems of Member States;
—It will have a more gradual launch, with two
to three Knowledge and Innovation Communities (KICs) in the first
period to 2013, rather than the original proposal of up to six
KICs;
—Agreement on a two-phase approach which will
allow lessons to be learnt from progress of the initial KICs,
and a requirement for a further legal decision by Council and
European Parliament before any expansion in the number of KICs;
—There will be a light-touch governance regime,
which allows substantial autonomy for the individual KICs, while
maintaining appropriate transparency, quality assurance, accountability
and evaluation provision.
The issue of the budget is still outstanding and
it is still under discussion in both Council Working Group and
the European Parliament. The text states that the indicative financial
envelope for this regulation during 2008-2013 is set at €308.7m.
The suggestion is that this would be sourced from the margin of
heading 1A (Competitiveness for Growth and Employment) of the
EC Budget. The Government has opposed this figure during negotiations.
Insufficient justification has been provided for an amount that
represents more than 25% of the margins of budget heading 1A,
designed to cater for unforeseen needs during the current 2007-2013
Financial Perspective. The Commission is also yet to explain satisfactorily
why a smaller number of KICs than the six originally proposed
would require the same level of direct funding from the Community
budget.
While the Government hopes that a way will be found
to reduce the call on the margin, it is clear from the most recent
Council Working Group meetings that a large majority of Member
States appear ready to agree to the Commission's proposal as it
stands. The Presidency has announced its aim of achieving a 'General
Approach' on this proposal at the 25 June Competitiveness Council
Meeting. I hope that the information above is sufficient to enable
your Committee to lift its scrutiny reserve prior to the Competitiveness
Council meeting on 25 June.
Letter dated 26 June 2007 from the Minister of
State for Science and Innovation at the Department of Trade and
Industry
I have previously written to your Committee on 21
March, 11 May and 12 June on the European Commission proposal
to establish a European Institute of Technology. I also attended
an oral evidence session with Sub-Committee G on 7 June as part
of its inquiry into the EIT. Your Committee cleared this proposal
from scrutiny on 14 June. I am writing to inform your Committee
of latest developments.
At the 25 June Competitiveness Council which I attended,
the Presidency concluded that in the light of comments made by
delegations it had secured a 'General Approach' on its compromise
text (as slightly amended during the course of the meeting), including
on the level of direct contribution from the Community budget.
This met the remit contained in the 21-22 June European Council
Conclusions. I indicated that while the UK welcomed the substantial
improvements made to the legal text, we were unable to approve
the budget of EUR308.7m, especially given the reduction in the
number of Knowledge and Innovation Communities from a maximum
of six to 'two to three'. The question of which budgetary headings
the above amount would be attributed will form part of subsequent
negotiations with the European Parliament.
With regard to other outstanding issues in the text,
the Council agreed to include wording referring to "renewable
energy and climate change" as possible priority fields in
the preamble (Recital 21). There was also agreement on the language
regime, with the addition of a requirement that "Official
documents and publications will be translated in accordance with
Regulation 1/58", to be inserted into Article 139 (new para
7).
The Presidency expressed its hope that a First Reading
Agreement could be reached with the European Parliament.
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