PURPOSE: to ensure the continuation of research and training activities funded by the EU in the area of nuclear science and technology for the period 2012-2013.

NON LEGISLATIVE ACT: Council Decision 2012/93/Euratom concerning the Framework Programme of the European Atomic Energy Community for nuclear research and training activities (2012 to 2013).

CONTENT: the Council extended, for a two-year period, the European Atomic Energy Community (Euratom) framework programme for nuclear research.

The Euratom programme, which expires at the end of 2011, has been extended in order to align it with the end of the EU's current financial cycle in 2013. Euratom programmes are limited by the Euratom Treaty to five years, whereas the general 7th framework programme for research, which runs until the end of 2013, lasts for seven years.

This Decision forms part of the package of decisions relating to framework programmes comprising two types of activities ( direct and indirect actions) and the rules of participation .

The Framework Programme will build on the achievements of the Seventh Framework Programme adopted by Council Decision 2006/970/Euratom concerning the Seventh Framework Programme of Euratom for the period 2007 to 2011), whilst including necessary reinforced emphasis on nuclear safety contributing to reorientation of nuclear research. Regarding policy, the most significant development has been the adoption and endorsement of the European Strategic Energy Technology Plan (SET-Plan) as part of a broad portfolio approach to addressing future energy challenges.

Priorities: the programme will place particular stress on nuclear safety and security as well as radiation protection and, at the same time, will contribute to Innovation Union and to the creation of the European Research Area.

The Framework Programme will cover Community research, technological development, international cooperation, and dissemination of technical information, exploitation activities and training, to be set out in two specific programmes.

The first specific programme shall cover the following indirect actions:

· fusion energy research, with the objective of developing the technology for a safe, sustainable, environmentally responsible and economically viable energy source;

· nuclear fission, safety and radiation protection, with the objective of enhancing the safety of nuclear fission and other uses of radiation in industry, in medicine and in improving the management of radioactive waste.

The second specific programme shall cover the direct research activities of the Joint Research Centre (JRC) in the field of nuclear waste management, environmental impact, safety and security.

Ethical principles : all the research activities carried out under the Framework Programme shall be carried out in compliance with fundamental ethical principles, including those reflected in the Charter of Fundamental Rights of the European Union.

Financial envelope: the maximum amount for the implementation of the Framework Programme shall be EUR 2 560 270 000 . This amount shall be distributed as follows:

· for the specific programme to be carried out by means of indirect actions: (i) fusion energy research EUR 2 208 809 000 ; (ii) nuclear fission, safety, and radiation protection EUR 118 245 000;

· for the specific programme, to be carried out by means of direct actions: nuclear activities of the JRC : EUR 233 216 000.

Monitoring, assessment and review: the Commission shall continually and systematically monitor the implementation of the Framework Programme and its specific programmes and regularly report and disseminate the results of this monitoring. In early 2013, a specific monitoring report shall be presented to the Council, dedicated to the implementation of nuclear safety and security activities of the Framework Programme.

Following the completion of the Framework Programme, the Commission shall, by 31 December 2015, have an external evaluation carried out by independent experts of its rationale, implementation and achievements.

ENTRY INTO FORCE: 21/02/2012.

The European Parliament adopted a non-legislative resolution amending the proposal for a Council decision concerning the Framework Programme of the European Atomic Energy Community for nuclear research and training activities (2012-2013).

Parliament considers that the prime reference amount set in the legislative proposal is not compatible with the ceiling of Heading 1a of the current Multiannual Financial Framework 2007- 2013 (MFF). It takes note of the Commission proposal to revise the current MFF in order to accommodate the additional unforeseen funding for ITER for the years 2012-2013, and it is willing to enter into negotiations with the other arm of the budgetary authority with a view to reaching a swift agreement on the financing of the Euratom research programme by the end of 2011. Members recall their opposition to any form of redeployment from the Seventh Framework Programme of the European Community for research, technological development and demonstration activities (2007-2013) as proposed in the Commission proposal.

The main amendments to the proposal are as follows:

Nuclear safety : Parliament states that the improvement of nuclear safety and, where relevant, security aspects, should be prioritised given the possible cross-border impact of nuclear incidents. In view of the accident at the Fukushima nuclear power plant in Japan resulting from the earthquake and tsunami of 11 March 2011, additional research work in the field of nuclear fission safety is necessary in order to reassure Union citizens that the safety of nuclear facilities based in the Union continues to meet the highest international standards. Such additional work requires an increase in the budget allocation for nuclear fission.

Additional funding of ITER : an agreement on additional funding of ITER solely through transfers of unused 2011 margins of the Multiannual Financial Framework (MFF) and without redeployments from the Seventh EU Framework Programme (2007-2013) to the Framework Programme (2012-2013) would allow for swift adoption of the programme in 2011.

A recital states that to accommodate the Framework Programme (2012-2013) in the MFF for the years 2012 and 2013, it will be necessary to amend the MFF by increasing the ceiling of Heading 1a. If no other 2011 MFF margins are available to be transferred in 2012 and 2013, the Flexibility Instrument, as provided for in point 27 of the IIA, should be mobilised.

For the 2014-2020 MFF, the financial resources dedicated to the ITER project should be fixed for the whole programming period so that any over-running of the costs beyond the EU share of EUR 6.6 billion for the ITER construction period, currently planned to be finalised in 2020, should be financed outside the MFF ceilings ('ring fencing').

Parliament adds that the Framework Programme (2012-2013) should be on the one hand be open to the participation of countries that have concluded the necessary agreements to this effect, and should also be open, at project level and on the basis of mutual benefit, to the participation of entities from third countries and of international organisations for scientific cooperation. On the other hand, this also means that, particularly with regard to the ITER project, the international partners should fully respect their financial obligations.

Framework Programme : the resolution stresses the need to place particular emphasis on nuclear safety, security and radiation protection.

It adds that the Framework Programme (2012-2013) shall contribute to implementing the SET-plan. Its actions should take into account the Strategic Research Agenda of the three existing European technology platforms on nuclear energy: SNETP, IGDTP and MELODI.

Funding : the maximum amount for the implementation of the Framework Programme (2012-2013) shall be EUR 2 100270 000 (rather than EUR 2 560270 000). This amount shall be distributed as follows:

fusion energy research EUR 1 748 809 000; this figure include the necessary funds for the continuation of the JET programme in Culham; nuclear fission, especially safety, improving the management of nuclear waste and radiation protection EUR 118 245 000; nuclear activities of the JRC relating to nuclear safety, environmental protection and decommissioning EUR 233 216 000.

Special attention shall be paid to the development of contractual arrangements that reduce the risk of failure to perform as well as the reallocation of risks and costs over time.

Special attention shall also be paid to initiatives ancillary to core nuclear research, in particular as regards investment in human capital and adequate working conditions and actions aimed at addressing the risk of skills shortages in the coming years .

Monitoring, assessment and review : Member States and the Commission shall establish a review of professional qualifications, training and skills in the nuclear field in the Union, which gives an overall picture of the current situation and enable appropriate solutions to be identified and implemented.

Annex : on nuclear fission and radiation protection, Parliament states that special attention should be given to long-lived nuclear waste when decommissioning outdated systems. It stresses continued support for the retention and development of qualified personnel required to maintain the nuclear independence of the Union and consistently ensure, and improve the level of, nuclear safety. It is crucial to keep nuclear expertise in the Union, as regards radioprotection and the dismantling of nuclear facilities, as nuclear energy will play a key role in the Union's energy mix, including decommissioning and long-life waste-management activities.

Lastly, Parliament states that the management of European research funding should be more trust-based and risk-tolerant towards participants at all stages of the projects, while ensuring accountability, with flexible Union rules to improve alignment, where possible, with existing different national regulations and recognised accounting practices. It adds that it is necessary to strike a balance between trust and control – between risk taking and the dangers that risk involves – in ensuring the sound financial management of Union research funds.

The Committee on Industry, Research and Energy adopted the report by Jan BREZINA (EPP, CZ) on the proposal for a Council decision concerning the Framework Programme of the European Atomic Energy Community for nuclear research and training activities (2012-2013).

It recommended that the European Parliament made some amendments to the Commission proposal. The committee considers that the prime reference amount set in the legislative proposal is not compatible with the ceiling of Heading 1a of the current Multiannual Financial Framework 2007- 2013 (MFF). It takes note of the Commission proposal to revise the current MFF in order to accommodate the additional unforeseen funding for ITER for the years 2012-2013, and it is willing to enter into negotiations with the other arm of the budgetary authority with a view to reaching a swift agreement on the financing of the Euratom research programme by the end of 2011. Members recall their opposition to any form of redeployment from the Seventh Framework Programme of the European Community for research, technological development and demonstration activities (2007-2013) as proposed in the Commission proposal.

The main amendments to the proposal are as follows:

Nuclear safety : the report states that the improvement of nuclear safety and, where relevant, security aspects, should be prioritised given the possible cross-border impact of nuclear incidents. In view of the accident at the Fukushima nuclear power plant in Japan resulting from the earthquake and tsunami of 11 March 2011, additional research work in the field of nuclear fission safety is necessary in order to reassure Union citizens that the safety of nuclear facilities based in the Union continues to meet the highest international standards. Such additional work requires an increase in the budget allocation for nuclear fission.

Additional funding of ITER : an agreement on additional funding of ITER solely through transfers of unused 2011 margins of the Multiannual Financial Framework (MFF) and without redeployments from the Seventh EU Framework Programme (2007-2013) to the Framework Programme (2012-2013) would allow for swift adoption of the programme in 2011.

A recital states that to accommodate the Framework Programme (2012-2013) in the MFF for the years 2012 and 2013, it will be necessary to amend the MFF by increasing the ceiling of Heading 1a. If no other 2011 MFF margins are available to be transferred in 2012 and 2013, the Flexibility Instrument, as provided for in point 27 of the IIA, should be mobilised.

For the 2014-2020 MFF, the financial resources dedicated to the ITER project should be fixed for the whole programming period so that any over-running of the costs beyond the EU share of EUR 6.6 billion for the ITER construction period, currently planned to be finalised in 2020, should be financed outside the MFF ceilings ('ring fencing').

Framework Programme : the report stresses the need to place particular emphasis on nuclear safety, security and radiation protection.

It adds that the Framework Programme (2012-2013) shall contribute to implementing the SET-plan. Its actions should take into account the Strategic Research Agenda of the three existing European technology platforms on nuclear energy: SNETP, IGDTP and MELODI. Members consider that more emphasis could be put on the need for coherence between the research and training activities to be pursued in 2012-2013 and the strategic research agendas of three major European cooperative initiatives which have been launched under the 7 th Euratom framework program: the European Sustainable Nuclear Industrial Initiative under SET-Plan (encompassing the Sustainable Nuclear Energy Technology Platform – SNETP - and the Implementing Geological Disposal Technology Platform - IGDTP) and the Multidisciplinary European Low-Dose Initiative (MELODI).

Funding: the maximum amount for the implementation of the Framework Programme (2012-2013) shall be EUR 2 100270 000 (rather than EUR 2 560270 000). This amount shall be distributed as follows:

fusion energy research EUR 1 748 809 000; nuclear fission, especially safety, improving the management of nuclear waste and radiation protection EUR 118 245 000; nuclear activities of the JRC relating to nuclear safety, environmental protection and decommissioning EUR 233 216 000.

Special attention shall be paid to the development of contractual arrangements that reduce the risk of failure to perform as well as the reallocation of risks and costs over time.

Monitoring, assessment and review : Member States and the Commission shall establish a review of professional qualifications, training and skills in the nuclear field in the Union, which gives an overall picture of the current situation and enable appropriate solutions to be identified and implemented.

Annex : on nuclear fission and radiation protection, the report states that special attention should be given to long-lived nuclear waste when decommissioning outdated systems. It stresses continued support for the retention and development of qualified personnel required to maintain the nuclear independence of the Union and consistently ensure, and improve the level of, nuclear safety. It is crucial to keep nuclear expertise in the Union, as regards radioprotection and the dismantling of nuclear facilities, as nuclear energy will play a key role in the Union's energy mix, including decommissioning and long-life waste-management activities.

Lastly, the committee states that the management of European research funding should be more trust-based and risk-tolerant towards participants at all stages of the projects, while ensuring accountability, with flexible Union rules to improve alignment, where possible, with existing different national regulations and recognised accounting practices. It adds that it is necessary to strike a balance between trust and control – between risk taking and the dangers that risk involves – in ensuring the sound financial management of Union research funds.

Following a public debate , the Council took note of a progress report submitted by the Presidency on the proposal for extending, for a two-year period, the current European Atomic Energy Community (Euratom) framework programme, which expires at the end of 2011. A number of delegations asked to continue efforts in order to achieve an agreement on the proposal as soon as possible .

The proposal will extend the Euratom programme in order to align it with the end of the EU's current financial cycle in 2013. Euratom programmes are limited by the Euratom Treaty to five years, whereas the general 7th framework programme for research, which runs until end 2013, lasts for seven years.

This ex-ante evaluation accompanies the legislative package of Commission's proposals for the Euratom nuclear research and training activities (2012-13).

The legislative package consists of:

the draft Council Decisions for the Framework Programme; specific Programmes for direct and indirect actions; rules for the participation of undertakings, research centres and universities in actions under the framework programme and for the dissemination of research results.

The legislative package aims to continue supporting R&D actions in the nuclear field carried out under the 7th Euratom Framework Programme (2007-2011). The proposals will only cover two years (2012-13), in accordance with the current financial perspectives (2007-2013) and in line with the timeframe of the EU 7th Framework Programme (2007-2013).

Research co-funded by Euratom plays an important role in enhancing the safety, resource efficiency and cost-effectiveness of nuclear fission and other uses of radiation in industry and medicine, and some of the research project are playing a key initiating role in the recently launched European Sustainable Nuclear Industrial Initiative (ESNII), one of the six European industrial initiatives launched under the European Strategic Energy Technology Plan (SET-plan) in 2010.

The proposals for the Euratom Framework Programme are clearly linked to the objectives of the Europe 2020 and Energy 2020 strategies. The programme will contribute to the Innovation Union flagship by supporting pre-commercial research and facilitating technology transfer process between academia and industry and to the Resource efficient Europe flagship by greatly increasing the overall sustainability of nuclear energy. By putting emphasis on training in all its activities, boosting competitiveness in the current nuclear industry and creating a new sector of high-tech industry for fusion energy in particular, the Euratom programme will lead to growth and new jobs in a wide range of disciplines. Proposals for the Euratom Framework Programme follow up the conclusions of the European Council (4 February 2011) which agreed that the EU and its Member States will promote investment in renewables, safe and sustainable low carbon technologies and focus on implementing the technology priorities established in the SET-plan. Both nuclear fission and fusion are identified in the SET-Plan as energy technologies which Europe must maintain, develop and deploy in order to meet its short and longer term energy objectives.

Lastly, proposals for the Euratom Framework Programme (2012-2013) take account of the simplification process, launched by the Commission in 2010, which makes current and future research programme more attractive and more accessible to the best researchers and most innovative companies. Simplification measures for the Euratom Framework Programme (2012-2013) will be implemented through the Commission decision C(2011)174 of 24 January 2011.

PURPOSE: to adopt a multiannual framework programme for nuclear research and training activities (Framework Programme (2012-2013)’) for the period from 1 January 2012 to 31 December 2013.

PROPOSED ACT: Council Decision.

BACKGROUND: joint national and European efforts in the area of research and training are essential to promote and ensure economic growth and the well-being of citizens in Europe. Under Article 7 of the Euratom Treaty, the Euratom Framework Programme is the Community’s main instrument for supporting and complementing Member States’ activities in nuclear research and development (R&D). The existing provisions are contained in Council Decision 2006/970/Euratom on the Euratom Framework Programme and they will expire at the end of 2011.

The proposal is for the adoption of a Council decision concerning Euratom's Framework Programme for 2012-2013.

This Framework Programme is part of a legislative package that contains proposals for decisions for the Framework Programme itself, two Specific Programmes (for direct and indirect actions), and the Rules for Participation ).

IMPACT ASSESSMENT: in accordance with Article 21 of the Implementing Rules for the Financial Regulation (Commission Regulation N° 2342/2002), the Commission has prepared an ex ante evaluation. Since this proposal aims to continue the activities of the Euratom Framework Programme for 2012-13 under the same financial perspectives, the requirement for an Impact Assessment has been waived.

LEGAL BASIS: Article 7 of the Treaty establishing the European Atomic Energy Community (Euratom). The added value of Euratom involvement in nuclear research is intimately linked to cross-border effects, economies of scale, and contributing to the resolution of market failures. Euratom projects in fission, fusion and radiation protection can allow research to achieve the required ‘critical mass’, while lowering commercial risk and levering private investment. Euratom actions also play a key role in transferring nuclear skills and knowledge across frontiers, helping to foster excellence in research and innovation.

CONTENT: the overall aim of the proposal is to ensure the continuation of EU-funded research and training activities in nuclear science and technology during the years 2012-13. The Euratom Framework Programme is also crucial if Europe is to maximise the return on investment in ITER which has now entered its construction phase and relies on the continued support of Europe's fusion energy research programme. In addition, both nuclear fission and fusion are identified in the SET-Plan as energy technologies which Europe must develop in order to meet its energy objectives.

The Euratom Framework Programme for 2012-13 contains broadly the same scientific, technical and strategic objectives and uses the same funding schemes as the current Euratom FP7 programme (2007-2011). Nonetheless, the programme has evolved over the last five years, and must take into account the results of recent research and the new policy context and research landscape in Europe. Regarding policy, the most significant development has been the adoption and endorsement of the European Strategic Energy Technology Plan (SET-Plan) as part of a broad portfolio approach to addressing future energy challenges. The Framework Programme (2012-2013) will cover Community research, technological development, international cooperation, dissemination of technical information, exploitation activities and training, to be set out in the two specific programmes.

The broad objectives for the Euratom Framework Programme for the years 2012-13 are:

in the area of fusion energy research, to develop the technology for a safe, sustainable, environmentally responsible and economically viable energy source; in the area of nuclear fission and radiation protection, to enhance the safety, resource efficiency and cost-effectiveness of nuclear fission and other uses of radiation in industry and medicine, and to enhance nuclear security (nuclear safeguards, non-proliferation, combating illicit trafficking and nuclear forensics).

Budget for Euratom Framework Programme 2012-2013 (including ITER): the draft appropriations initially provided for nuclear research in the Multiannual Financial Framework for 2007-2013 (MFF) are insufficient owing to the substantial cost increase of the ITER project. The cost increase of the ITER project was the subject of an in-depth assessment in the Commission Communication “ITER status and possible way forward”. If no decision were taken on the increase of budget for ITER, Euratom's contribution to ITER would be limited to the appropriations envisaged for this purpose in the MFF, which would as a consequence prevent Euratom from fulfilling its legal obligations under the ITER agreement.

In its conclusions of 12 July 2010, the Council reaffirmed its commitment to ITER, acknowledged its increased financing needs and set out a number of guidelines on cost containment and management. The Council agreed on a EUR 6.6 billion limit of the European contribution to the construction phase of ITER until 2020. This includes EUR 1.4 billion during period of 2012-2013. The Council also mandated the Commission to support the adoption of the ITER Baseline, which prompted the Commission's proposal to amend the Multiannual Financial Framework, to address additional financing needs of ITER

At the extraordinary ITER Council meeting of 28 July 2010 the Baseline was adopted. Euratom's support was given ad referendum. The European Parliament and the Council are still to approve the Commission's proposed amendments.

Following Commission's proposal to amend the MFF, the Council reached an agreement in November 2010 on the use of existing margins of the 2010 budget and redeployment within the MFF and 7th EU Research Framework Programme to cover the additional ITER needs at the level of EUR 1.3 billion, i.e. 100 million short of the needs of EUR 1.4 billion acknowledged by the Council conclusions of 12 July 2010. The reduction of EUR 100 million for the period 2012-2013 does not contradict, nor cancel, the Council's commitment to an overall European contribution to the ITER construction costs at the level of EUR 6.6 billion.

In the context of the conciliation procedure for the 2011 budget and the related discussion on the flexibility instrument, the budgetary authority did not conclude an agreement on additional European funding for ITER. Therefore, a decision on that matter, based on the Commission's proposal will have to be taken as soon as possible during 2011. The Commission proposes that, in these circumstances, the legislative process concerning proposals for Euratom FP for 2012-13 will be carried out in parallel to the continuing discussion on the budget for ITER and the 2012 budget. Agreement on additional funding will allow for swift adoption of the Euratom research programme in 2011, a decision that will be important in view of maintaining Euratom's support for exploitation of nuclear facilities such as JET as well as JRC direct actions.

BUDGETARY IMPLICATION: the maximum amount for the implementation of the Framework Programme (2012-2013) shall be EUR 2 560 270 000 . This amount shall be distributed as follows (in EUR): (i) for the specific programme, to be carried out by means of indirect actions: – fusion energy research 2 208 809 000; nuclear fission and radiation protection 118 245 000; (ii) for the specific programme, to be carried out by means of direct actions: nuclear activities of the JRC 233 216 000.