Decision (EU) 2017/1324 of the European Parliament and of the Council of 4 July 2017 on the participation of the Union in the Partnership for Research and Innovation in the Mediterranean Area (PRIMA) jointly undertaken by several Member States

The Union shall participate in the Partnership for Research and Innovation in the Mediterranean Area (PRIMA), an institutionalised European partnership as referred to in Article 10(1), point (c), of Regulation (EU) 2021/695 of the European Parliament and of the Council ([^E0001]) (Horizon Europe), jointly undertaken by Bulgaria, Croatia, Cyprus, France, Germany, Greece, Israel, Italy, Luxembourg, Malta, Portugal, Slovenia, Spain, Tunisia and Turkey (Participating States), in accordance with the conditions laid down in this Decision and upon notification of their participation in the activities of PRIMA by signing a letter of commitment.

Algeria, Egypt, Jordan, Lebanon and Morocco shall continue to be Participating States for the purposes of the activities of PRIMA funded under Article 3(1), point (a) For the purpose of their participation in activities of PRIMA funded under Article 3(1), point (b), they shall be considered to be Participating States only upon the conclusion of an agreement, in the form of Exchange of Letters, amending and supplementing the existing international agreements for scientific and technological cooperation with the Union and setting out the new terms and conditions of their participation in PRIMA.

Any Member State and any third country associated to Horizon 2020 or Horizon Europe, other than those listed in paragraph 1 of this Article, may participate in PRIMA, provided that they fulfil the condition laid down in Article 4(1), point (c) and comply, in particular, with Article 11(5). They shall sign a letter of commitment confirming the terms and conditions of their participation in PRIMA with regard to Horizon 2020 or Horizon Europe as applicable.

Any third country not associated to Horizon 2020 or Horizon Europe, other than those listed in paragraph 2 of this Article, may participate in PRIMA provided that:

PRIMA shall contribute to the general and specific objectives of Regulation (EU) 2021/695, and in particular Article 3 thereof, and shall deliver on the general objectives of building research and innovation capacities and developing knowledge and common innovative solutions for agro-food systems, making them sustainable, and for integrated water provision and management in the Mediterranean area, in order to make them, their management and their provision more climate resilient, efficient, cost-effective and environmentally and socially sustainable, and to enhance their contribution to solving water scarcity, food security, nutrition, health, well-being and migration problems upstream.

In order to contribute to the general objectives set out in paragraph 1, PRIMA shall fulfil the following specific objectives:

The Union financial contribution to PRIMA, including EEA appropriations, shall be equal to the Participating States’ contributions. The Union financial contribution shall be up to EUR 325 000 000 and shall be distributed as follows:

The Union financial contribution referred to in paragraph 1, point (a), of this Article shall be paid from the appropriations in the general budget of the Union allocated to the relevant parts of the specific programme implementing Horizon 2020, established by Council Decision 2013/743/EU, and in particular from Part II ‘Industrial leadership’ and Part III ‘Societal challenges’, in accordance with Article 57 of Regulation (EU) 2021/695 and Article 62(1), point (c)(vii), of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council ([^E0002]).

The Union financial contribution referred to in paragraph 1 of this Article shall be used by PRIMA-IS to:

The Union financial contribution referred to in Article 3(1) shall be conditional upon the following:

During the implementation of PRIMA, the Union financial contribution referred to in Article 3(1) shall also be conditional upon the following:

The Commission shall assess, on an ongoing basis, the fulfilment of commitments undertaken by the Participating States and, following that assessment, may involve Participating States and PRIMA-IS as necessary and take appropriate measures including those provided for in Article 9.

The Participating States shall make, or arrange for their national funding bodies to make, contributions, whether financial or in kind, of at least EUR 325 000 000 from 7 August 2017 until 31 December 2031.

The Participating States' contributions shall consist of the following:

In-kind contributions referred to in point (b) of paragraph 2 of this Article shall consist of costs incurred by the Participating States in implementing activities referred to in point (b) of Article 6(1), less any direct or indirect Union financial contribution to those costs.

In-kind contributions referred to in point (c) of paragraph 2 shall consist of costs incurred by the Participating States in relation to the administrative budget of PRIMA-IS, less any direct or indirect Union financial contribution to those costs.

For the purpose of valuing the in-kind contributions referred to in points (b) and (c) of paragraph 2, the costs shall be determined in accordance with the usual accounting practices of the Participating States or the national funding bodies concerned, the applicable accounting standards of the Participating State where the national funding bodies concerned are established and the applicable International Accounting Standards and International Financial Reporting Standards. The costs shall be certified by an independent auditor appointed by the Participating States or the national funding bodies concerned. Should there be any uncertainty arising from the certification, the valuation method may be verified by PRIMA-IS. In the event of remaining uncertainties, the valuation method may be audited by PRIMA-IS.

The Participating States’ contributions referred to in paragraph 2 of this Article shall be made after the adoption of the annual work programme. Where the annual work programme is adopted during the reference year referred to in Article 6(2), the contributions referred to in paragraph 2, point (c), of this Article that count as contributions from Participating States included in the annual work programme may include contributions made from 1 January of that year. However, the contributions referred to in paragraph 2, point (c), of this Article that count as contributions from Participating States included in the first annual work programme may include contributions made after 7 August 2017.

PRIMA shall support a wide range of research and innovation activities, as described in its annual work programme, by means of:

PRIMA shall be implemented on the basis of annual work programmes covering activities to be undertaken from 1 January to 31 December in a given year (reference year). PRIMA-IS shall adopt the annual work programmes by 31 March of the reference year, after obtaining approval from the Commission. In adopting the annual work programmes, both PRIMA-IS and the Commission shall act without undue delay. PRIMA-IS shall make the annual work programme publicly available.

Activities referred to in paragraph 1, points (a) and (b), may be launched only in the reference year and only after the adoption of the annual work programme for that year.

If the annual work programme is adopted during the reference year, the Union financial contribution referred to in Article 3(1) may be used to reimburse the administrative costs of PRIMA-IS incurred from 1 January of that reference year in line with the annual work programme concerned. However, the Union financial contribution referred to in Article 3(1) may reimburse the administrative costs of PRIMA-IS as incurred from 7 August 2017 in line with the first annual work programme.

Activities may be funded under PRIMA only if they are set out in the annual work programme. The annual work programme shall distinguish between the activities referred to in paragraph 1, point (a), of this Article, the activities referred to in paragraph 1, point (b), of this Article and the administrative costs of PRIMA-IS. It shall provide for their corresponding expenditure estimates as well as for the budget allocation to activities funded with the Union financial contribution referred to in Article 3(1) and to activities funded by the Participating States without the Union financial contribution referred to in Article 3(1). The annual work programme shall also include the estimated value of the Participating States’ in-kind contributions referred to in Article 5(2), point (b).

Amended annual work programmes for a reference year and annual work programmes for subsequent reference years shall take into account the results of previous calls for proposals. They shall endeavour to address insufficient coverage of scientific topics, in particular those initially addressed in activities under paragraph 1, point (b) that could not be adequately funded.

The final activities to be funded, including the final calls for proposals under the relevant annual work programmes shall be launched by 31 December 2027. In duly justified cases, they may be launched by 31 December 2028.

Activities to be funded by the Participating States without the Union financial contribution referred to in Article 3(1) may be included in the annual work programme only following the positive outcome of their external independent evaluation by international peer review with regard to the objectives of PRIMA, as organised by PRIMA-IS.

Activities included in the annual work programme that are funded by the Participating States in accordance with paragraph 1, point (b), of this Article shall be implemented in compliance with common principles to be adopted by PRIMA-IS, after obtaining approval from the Commission. The common principles shall take into account the principles set out in this Decision, in Title VIII of Regulation (EU, Euratom) 2018/1046 and in Chapter II of Regulation (EU) 2021/695. PRIMA-IS shall also adopt, after obtaining approval from the Commission, the reporting requirements of the Participating States to PRIMA-IS, including with regard to indicators inserted into each of those activities.

The activities referred to in paragraph 1, point (b)(i), shall, in addition to the common principles referred to in paragraph 9, comply with the following conditions:

PRIMA-IS shall monitor and report annually to the Commission on the implementation of all activities included in the annual work programme.

Any communication or publication relating to the activities of PRIMA, and performed in cooperation with PRIMA, whether undertaken by PRIMA-IS, a Participating State, the national funding bodies of a Participating State, or participants in an activity, shall be labelled or co-labelled as follows: “[name of the activity] is part of PRIMA co-funded by the European Union”.

PRIMA-IS shall be considered to be a funding body as defined in Article 2, point (11), of Regulation (EU) No 1290/2013 and in Article 2, point (14), of Regulation (EU) 2021/695, as applicable, and shall provide financial support to indirect actions referred to in Article 6(1), point (a), of this Decision in accordance with the rules set out in the relevant Regulations and subject to the derogations set out in this Article.

In accordance with Article 17(2) of Regulation (EU) 2021/695 and by way of derogation from Article 9(1), point (b), of Regulation (EU) No 1290/2013, and from Article 22(2) of Regulation (EU) 2021/695, the minimum number of participants shall be three legal entities established in three different countries considered to be Participating States by the submission deadline under the relevant call for proposals, of which at least one is established:

By way of derogation from Article 9(3) of Regulation (EU) No 1290/2013 and from Article 22(2) of Regulation (EU) 2021/695, in duly justified cases provided for in the annual work programme, the minimum condition shall be the participation of one legal entity established in a Participating State by the submission deadline under the relevant call for proposals.

By way of derogation from Article 10(1) and (2) of Regulation (EU) No 1290/2013 and from Article 23(1) and (2) of Regulation (EU) 2021/695, the following participants shall be eligible for funding by PRIMA-IS:

In the case of a participating international organisation or of a participating legal entity established in a country that is not a Participating State, neither of which is eligible for funding in accordance with paragraph 4, funding by PRIMA-IS may be granted provided that at least one of the following conditions is fulfilled:

Without prejudice to Regulation (EU, Euratom) 2018/1046, the applicable model grant agreement may lay down that legal entities established in countries which are not Participating States and which receive funding from PRIMA-IS shall also provide appropriate financial guarantees.

The Union shall conclude agreements with third countries that provide for the protection of the financial interests of the Union.

Subject to a positive ex ante assessment of PRIMA-IS in accordance with Article 154(3) of Regulation (EU, Euratom) 2018/1046 and the provision of adequate financial guarantees in accordance with Article 62(1), point (c)(vi), of that Regulation, the Commission, on behalf of the Union, shall conclude a Financial Framework Partnership agreement and contribution agreements with PRIMA-IS.

The Financial Framework Partnership agreement referred to in paragraph 1 of this Article shall be concluded in accordance with Article 130 of Regulation (EU, Euratom) 2018/1046. It shall also set out, inter alia, the following:

If PRIMA is not implemented or is implemented inadequately, partially or late, the Commission may terminate, proportionally reduce or suspend the Union financial contribution referred to in Article 3(1) in line with the actual implementation of PRIMA.

If the Participating States do not contribute, or contribute partially or late, to the financing of PRIMA the Commission may terminate, proportionally reduce or suspend the Union financial contribution referred to in Article 3(1), taking into account the amount of funding allocated by the Participating States to implement PRIMA.

The Commission’s decision to terminate, proportionally reduce or suspend the Union financial contribution shall not hinder the reimbursement of eligible costs already incurred by the Participating States before the decision is notified to PRIMA-IS.

PRIMA-IS shall carry out ex post audits of expenditure on indirect action under Regulation (EU) No 1291/2013 in accordance with Article 29 of that Regulation.

The Commission may decide to carry out the audits referred to in paragraph 1 itself. In such cases, it shall do so in accordance with the applicable rules, in particular the provisions of Regulations (EU, Euratom) No 966/2012, (EU) No 1290/2013 and (EU) No 1291/2013.

The Commission shall take appropriate measures to ensure that, when actions financed under this Decision are implemented, the financial interests of the Union are protected by the application of preventive measures against fraud, corruption and any other illegal activities, by effective checks and, if irregularities are detected, by the recovery of the amounts wrongly paid and, where appropriate, by effective, proportionate and dissuasive administrative sanctions.

PRIMA-IS shall grant Commission staff and other persons authorised by the Commission, as well as the Court of Auditors, access to its sites and premises and to all the information, including information in electronic format, that is needed in order to conduct their audits.

The European Anti-Fraud Office (OLAF) may carry out investigations, including on-the-spot checks and inspections, in accordance with the provisions and procedures laid down in Council Regulation (Euratom, EC) No 2185/96 ([^E0004]) and Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council ([^E0005]) with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union in connection with a grant agreement or grant decision or a contract funded, directly or indirectly, in accordance with this Decision.

Without prejudice to paragraphs 1 to 3a, contracts, grant agreements and grant decisions, resulting from the implementation of this Decision shall contain provisions expressly empowering the Commission, PRIMA-IS, the Court of Auditors, the EPPO and OLAF to conduct such audits and investigations in accordance with their respective competences. Where the implementation of an action is outsourced or sub-delegated, in whole or in part, or where it requires the award of a procurement contract or financial support to a third party, the contract, grant agreement or grant decision shall include the contractor’s or beneficiary’s obligation to impose on any third party involved explicit acceptance of those powers of the Commission, PRIMA-IS, the Court of Auditors, EPPO and OLAF.

In implementing PRIMA, the Participating States shall take the legislative, regulatory, administrative and other measures necessary for protecting the Union’s financial interests, in particular to ensure full recovery of any amounts due to the Union in accordance with Regulation (EU, Euratom) 2018/1046.

PRIMA-IS shall provide the Commission and, where applicable, the authorities of the Participating States with access to all information related to the indirect actions it funds. Such information shall include contributions and results of beneficiaries participating in indirect actions, or any other information deemed necessary for developing, implementing, monitoring and evaluating Union or where applicable Participating States’ policies or programmes. Such access rights shall be limited to non-commercial and non-competitive use and shall comply with applicable confidentiality rules.

For the purpose of developing, implementing, monitoring and evaluating Union policies or programmes, PRIMA-IS shall provide the Commission with the information included in submitted proposals. That requirement shall apply mutatis mutandis to Participating States regarding proposals which include applicants established in their respective territories.

The bodies of PRIMA-IS shall include:

PRIMA-IS shall be governed by a Board of Trustees. All Participating States shall be represented on the Board of Trustees. The Board of Trustees shall be the decision-making body of PRIMA-IS.

The Board of Trustees shall determine the number of Steering Committee members, which shall not be less than five. The Board of Trustees shall appoint the members of the Steering Committee. The Steering Committee shall monitor the work of the director and shall advise the Board of Trustees on the implementation of PRIMA by the Secretariat. In particular, it shall provide guidance on the implementation of the annual budget and on the annual work programme.

The Board of Trustees shall establish the Secretariat of PRIMA-IS as the executive body of PRIMA.

The Board of Trustees shall appoint a Scientific Advisory Committee consisting of renowned independent experts, competent in areas relevant to PRIMA. The Board of Trustees shall establish the number of Scientific Advisory Committee members, and the arrangements for their appointment in accordance with Article 49 of Regulation (EU) 2021/695.

At the request of the Commission, PRIMA-IS shall provide the Commission with any information necessary for the preparation of the reports referred to in Article 14.

The Participating States shall submit to the Commission, through PRIMA-IS, any information requested by the European Parliament, by the Council or by the Court of Auditors concerning the financial management of PRIMA.

The Commission shall include the information referred to in paragraph 2 of this Article in the reports referred to in Article 14.

The activities of PRIMA, including their efficiency and transparency, as well as their success rates, shall be continuously monitored and subject to periodic reviews to ensure the highest impact, scientific excellence and the most effective and efficient use of resources. The outcome of the monitoring and of the periodic reviews shall feed into the monitoring of European partnerships as part of the Horizon Europe evaluations pursuant to Articles 50 and 52 of Regulation (EU) 2021/695.

PRIMA-IS shall organise the continuous monitoring and reporting of the management and the implementation of their activities and the periodic reviews of the outputs, results and impact of the funded indirect actions implemented in accordance with Article 50 of Regulation (EU) 2021/695 and Annex III to that Regulation.

The Commission shall carry out an interim evaluation of PRIMA by 31 December 2025 and a final evaluation by 31 December 2031 in the framework of the Horizon Europe evaluations pursuant to Article 52 of Regulation (EU) 2021/695, with the assistance of external independent experts selected on the basis of an open and transparent process. The Commission shall prepare reports on the basis of those evaluations, which shall include conclusions of the evaluations and the Commission’s observations. The Commission shall submit its report on the final evaluation to the European Parliament and to the Council by 30 June 2032.

The interim and final evaluations referred to in paragraph 3 shall examine the success rates and the participation rates, including of the Southern Mediterranean Participating States, and PRIMA’s fulfilment of its mission and objectives, and shall cover all its activities and evaluate its European added value, effectiveness, efficiency, including its openness and transparency, the relevance of the activities pursued, including in industry and by SMEs, non-governmental organisations and in civil society, and their consistency and complementarity with relevant regional, national and Union policies, including synergies with other parts of Horizon Europe, such as other partnerships, missions, clusters and thematic or specific programmes. The evaluations shall take into account the views of a wide range of stakeholders, at Union and national level. They shall include, where relevant, an assessment of the most effective policy intervention mode for any future action, as well as the relevance and coherence of any possible renewal of PRIMA, given the overall policy priorities and the research and innovation support landscape, including the positioning against other initiatives supported through Horizon Europe.

The Commission shall publish and disseminate the results and conclusions of the evaluations referred to in paragraph 3.

PRIMA-IS, its bodies, members and staff shall avoid any conflict of interest in carrying out their activities.

PRIMA-IS shall adopt rules for the prevention, avoidance and management of conflicts of interest in respect of its staff, the members and other persons serving in any of its bodies or groups of PRIMA-IS, in accordance with Article 61 of Regulation (EU, Euratom) 2018/1046.

PRIMA-IS shall establish a code of conduct for the members of its bodies, which shall include the publication of declarations of professional activities, financial interests and conflicts of interest in accordance with data protection rules.