Explanatory Memorandum to COM(2017)432 - Signing and provisional application of the Agreement with Algeria on its participation in the Partnership for Research and Innovation in the Mediterranean Area (PRIMA)

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1. CONTEXTOFTHEPROPOSAL

Reasons for and objectives of the proposal

Following a proposal by the Commission for an Article185 TFEU PRIMA initiative1, the Decision (EU) 2017/1324 of the European Parliament and of the Council2 on the participation of the Union in the Partnership for Research and Innovation in the Mediterranean Area ('PRIMA') jointly undertaken by several Member States was adopted.

PRIMA aims at implementing a joint programme to foster research and innovation capacities and to develop knowledge and common innovative solutions for improving the efficiency, safety, security and sustainability of agro-food systems and of integrated water provision and management in the Mediterranean area. PRIMA will be jointly undertaken by a number of Member States and third countries ('PRIMA Participating States') with a high level of commitment to scientific, management and financial integration and under the same terms and conditions.

The People's Democratic Republic of Algeria ('Algeria') expressed its wish to join PRIMA as a Participating State by letters of 20 February 2017 and 23 April 2017, committing to provide a financial contribution of 20 million euros to the initiative.

In order to ensure that Algeria participates in PRIMA on an equal footing with Member States and third countries associated to Horizon 2020, an International Agreement with the Union is required to extend the scope of the legal regime established by Decision (EU) 2017/1324 to Algeria.

On 30 May 2017 the Council authorised the Commission to open negotiations, on behalf of the Union, with Algeria on an International Agreement between the Union and Algeria laying down the terms and conditions for the participation of Algeria in PRIMA, subject to the adoption of Decision (EU) 2017/1324.

The negotiations started on 26 June 2017 and were successfully completed on 11 July 2017, when the text of the draft Agreement was initialled by representatives from each of the future Parties. The draft Agreement attached to this proposal is in line with the negotiating directives issued by the Council. In particular, it establishes that the terms and conditions for the participation of Algeria in PRIMA shall be those set out in Decision (EU) 2017/1324 making direct reference to the Union legislative act.

In order to ensure the protection of Union financial interests, particularly the powers of the Commission, the European Anti-Fraud Office, the Court of Auditors and the PRIMA Implementation Structure (PRIMA-IS) to carry out audits and investigations in accordance with the applicable Union legislation, the Agreement makes specific reference to the relevant provisions of Decision (EU) 2017/1324 and obliges the Parties to provide all necessary assistance to ensure their implementation. In addition, the future Agreement stipulates that the

COM(2016) 662 final, 18.10.2016.

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

Parties must agree on detailed arrangements for assistance, such arrangements being essential to their cooperation under this Agreement.

Consistency with existing policy provisions in the policy area

As also presented in the impact assessment report for PRIMA3, the openness of PRIMA to the participation of third countries such as Algeria is consistent with the objectives of international cooperation for research and innovation as outlined in the 2012 Commission Communication Enhancing and focusing EU international cooperation in research and innovation: A strategic approach4 and Horizon 2020 Framework Programme, which promotes cooperation with third countries in science, technology and innovation in order to tackle global societal challenges and support Union external policies. This Agreement is also consistent with the existing Euro-Mediterranean Agreement establishing an Association between the European Community and its Member States, of the one part, and the People's Democratic Republic of Algeria, of the other part5 and the Agreement between the European Union and the People’s Democratic Republic of Algeria on scientific and technological cooperation6 which provide for cooperation between the Union and Algeria in research and technological development and encourage research and development activities in the fields of common interest.

Consistency with other Union policies

The implementation of PRIMA in close cooperation with third countries such as Algeria is also consistent with, and relevant for, other Union policies, such as migration policy, development policy and neighbourhood policy.

2. LEGALELEMENTS OF THE PROPOSAL

The proposal for a Council decision is based on Article 186 and Article 218(5) of the Treaty on the Functioning of the European Union.

3. BUDGETARYIMPLICATIONS

The Legislative Financial Statement presented with this Decision sets out the indicative budgetary implications.

In the light of the above, the Commission proposes that the Council

- decides on the signature and provisional application of the Agreement on behalf of the Union;

- authorises the negotiator of the Agreement to sign, on behalf of the Union, the Agreement for scientific and technological cooperation between the European Union and the People's Democratic Republic of Algeria setting out the terms and conditions for participation of the People's Democratic Republic of Algeria in the Partnership for Research and Innovation in the Mediterranean Area (PRIMA).

SWD(2016)332 final, 18.10.2016.

COM(2012) 497 final.

OJ L 265, 10/10/2005, p. 2.

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