From:                                         Pauline Bastidon

Sent:                                           jeudi 14 janvier 2010 16:48

To:                                               Christopher John Hull; 'eric.vandenabeele@diplobel.fed.be'; 'demetra.duleva@bg-permrep.eu'; 'ttelemachou@planning.gov.cy'; 'svetlana_kopecka@mzv.cz'; 'hana_vlckova2@mzv.cz'; 'johmog@um.dk'; 'reesi.lepa@mfa.eu'; 'Kekkonen Mikael'; 'eric-olivier.pallu@diplomatie.gouv.fr'; 'susanna.burger@diplo.de'; 'c.vasilakos@rp-grece.be'; 'comp.beu@kum.hu'; 'katalin.alfoldi@kum.hu'; 'robert.mclean@dfa.ie'; 'ricerca@rpue.esteri.it'; 'signe.martisune@mfa.gov.lv'; 'karina.firkaviciute@eurep.mfa.lt'; 'mike.hentges@mae.etat.lu'; 'neil.kerr@gov.mt'; 'kees.nederlof@minbuza.nl'; 'marloes.telgenhof@minbuza.nl'; 'grazyna.omarska@msz.gov.pl'; 'cms@reper-portugal.be'; 'mircea.sbarna@rpro.eu'; 'josef.pitel@mzv.sk'; 'albin.kralj@gov.si'; 'milagros.candela@reper.mae.es'; 'bjarne.kirsebom@foreign.ministry.se'; 'karin.henriksson@foreign.ministry.se'; 'Matthew.Houlihan@fco.gov.uk'; 'martin.Pjones@fco.gov.uk'

Subject:                                     CREST meeting 21-22 January - discussion on simplification

Attachments:                          DiscussiononSimplification.pdf

 

Dear Madam/Sir,

 

This message concerns the CREST meeting on 21 and 22 January 2010, and in particular item 5 on the agenda on simplification in the EU Framework Programmes and the related Commission paper on suggestions for the discussion on simplification (please see attachment).

 

We have been unable to identify most of the CREST delegates attending this particular meeting and would therefore be grateful if you could forward the following message to your national delegate attending this meeting on 22 January.

 

Thank you for your help.

 

Best regards,

Pauline Bastidon, on behalf of Christopher John Hull, Secretary General, EARTO – European Association of Research and Technology Organisations

 

Message to Delegates attending the CREST Meeting on 21st-22nd January

 

At your meeting on January 21st-22nd you are invited to comment on ideas for “simplification” put forward by the European Commission.

 

The Commission’s approach to simplification is increasingly a cause for concern for all of the key FP participant communities: large and small enterprises, universities, and RTOs. Permit me to use the opportunity of your forthcoming discussion to alert you to the essence of these concerns.

 

As a preamble, may I note that the whole FP simplification discussion has become somewhat perverted. When first proposed, and subsequently promoted by Commissioner Potočnik, the intention was to simplify to the benefit of FP participants. Since then, however, increasingly we see proposals from the Commission which will make life easier for the Commission but not for FP participants; indeed, sometimes they represent a complication for FP participants.  

 

The Commission appears to have forgotten that the FP is intended to be an incentive programme. It exists to compensate for market failures and systemic imperfections, by providing FP participants with a financial incentive to undertake research which otherwise they would not undertake. The widespread use of lump-sums etc., or “one-size-fits-all”, takes no account of the fact that in the real world the cost structures of different FP participants differ substantially: for example, the RTO with sophisticated plant and equipment necessarily has significantly higher overhead costs than the typical SME. The result of a “one-size-fits-all” cost-reimbursement regime would be to offer arbitrarily variable effective rates of cost reimbursement which would tend to penalise especially the more qualified, but necessarily more cost-intensive, research performers that presumably policy should be targeting as a priority. The basis for setting cost-reimbursement rules and values must always be the real economic cost to the particular organisation of the research to be performed. In general, full-cost accounting is the best approach.

 

Proposals in the Commission’s discussion paper – such as “one-size-fits-all” – run the risk of giving us a Framework Programme which is easier for the Commission to administer but which is in danger of missing the target because the approach fails to start from the basics:

-      What market imperfections and systemic failures is EU R&D&I is policy seeking to address?

-      What, then, are the varieties of research and types of actor that policy needs to target?

-      What kinds and amount of support do those different varieties of research and types of actor require in order to achieve the necessary minimum incentive effect?

 

Those are the essential questions that must condition the design and implementation of incentive programmes. “Simplification” that ignores them will fail. It is an illusion to think that you can simplify in abstraction from the objectives and targeting of policy.

 

We should be grateful if you would bear these things in mind during your forthcoming CREST discussion. 

 

Christopher John Hull
Secretary General
EARTO
rue Joseph II, 36-38
B-1000 Brussels
Belgium
+32-2-5028698
hull@earto.eu
www.earto.eu

 

 

 

 

Pauline Bastidon

Policy Officer

 

EARTO - European Association of Research and Technology Organisations

36-38 Rue Joseph II

1000 Brussels  

Tel: +32-2-502 86 98

Fax: +32-2-502 86 93

www.earto.eu  - bastidon@earto.eu 

cid:83388C8B-D86F-44E3-923F-3B40345DC2B5@lan