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Subject matter
This Regulation establishes the Digital Europe Programme (the ‘Programme’) for the duration of the MFF 2021-2027. This Regulation lays down the objectives of the Programme, its budget for the period 2021 to 2027, the forms of Union funding and the rules for providing such funding.
Definitions
For the purposes of this Regulation, the following definitions apply: (1) ‘blending operation’ means an action supported by the Union budget, including within a blending facility or platform as defined in point (6) of Article 2 of the Financial Regulation, that combines non-repayable forms of support or financial instruments from the Union budget with repayable forms of support from development or other public finance institutions, as well as from commercial finance institutions and investors; (2) ‘legal entity’ means a natural person, or a legal person created and recognised as such under Union, national, or international law, which has legal personality and the capacity to act in its own name, exercise rights and be subject to obligations, or an entity which does not have legal personality as referred to in point (c) of Article 197(2) of the Financial Regulation; (3) ‘associated country’ means a third country which is party to an agreement with the Union allowing for its participation in the Programme pursuant to Article 10; (4) ‘international organisation of European interest’ means an international organisation, the majority of whose members are Member States or whose headquarters are in a Member State; (5) ‘European Digital Innovation Hub’ means a legal entity selected in accordance with Article 16 in order to fulfil the tasks under the Programme, in particular by directly providing, or ensuring access to, technological expertise and experimentation facilities, such as equipment and software tools to enable the digital transformation of industry, as well as by facilitating access to finance and it is open to businesses of all forms and sizes, in particular to SMEs, mid-caps and scale-up companies, and to public administrations across the Union; (6) ‘advanced digital skills’ means the skills and professional competencies requiring the knowledge and experience necessary to understand, design, develop, manage, test, deploy, use and maintain the technologies, products and services supported by the Programme as referred to in Article 7; (7) ‘European Partnership’ means a European Partnership as defined in point (3) of Article 2 of Regulation (EU) 2021/695; (8) ‘small or medium-sized enterprise’ or ‘SME’ means a micro, small or medium-sized enterprise as defined in Article 2 of the Annex to Commission Recommendation 2003/361/EC ( 24 ) ; (9) ‘cybersecurity’ means the activities necessary to protect network and information systems, the users of such systems, and other persons affected by cyber threats; (10) ‘digital service infrastructures’ means infrastructures which enable networked services to be delivered electronically, typically over the internet; (11) ‘Seal of Excellence’ means a quality label which shows that a proposal submitted to a call for proposals under the Programme has passed all of the evaluation thresholds set out in the work programme, but could not be funded due to a lack of budget available for that call for proposals in the work programme, and might receive support from other Union or national sources of funding; (12) ‘exascale’ means, in the context of computing systems, being capable of executing 10 18 (ten to the power of 18) floating operations per second.
Programme objectives
1. The general objectives of the Programme shall be to support and accelerate the digital transformation of the European economy, industry and society, to bring its benefits to citizens, public administrations and businesses across the Union, and to improve the competitiveness of Europe in the global digital economy while contributing to bridging the digital divide across the Union and reinforcing the Union’s strategic autonomy, through holistic, cross-sectoral and cross-border support and a stronger Union contribution. The Programme shall be implemented in close coordination with other Union programmes as applicable, and shall aim: (a) to strengthen and promote Europe’s capacities in key digital technology areas through large-scale deployment; (b) in the private sector and in areas of public interest, to widen the diffusion and uptake of Europe’s key digital technologies, promoting the digital transformation and access to digital technologies. 2. The Programme shall have five interrelated specific objectives: (a) Specific Objective 1 – High Performance Computing (b) Specific Objective 2 – Artificial Intelligence (c) Specific Objective 3 – Cybersecurity and Trust (d) Specific Objective 4 – Advanced Digital Skills (e) Specific Objective 5 Deployment and Best Use of Digital Capacity and Interoperability.
Specific Objective 1- High Performance Computing
1. The financial contribution from the Union under Specific Objective 1 – High Performance Computing shall pursue the following operational objectives: (a) deploy, coordinate at Union level and operate an integrated demand-oriented and application-driven world-class exascale supercomputing and data infrastructure that shall be easily accessible to public and private users, in particular SMEs, irrespective of the Member State in which they are located, and easily accessible for research purposes, in accordance with Regulation (EU) 2018/1488; (b) deploy ready to use operational technology resulting from research and innovation in order to build an integrated Union HPC ecosystem, covering various aspects in the scientific and industrial value chain segments, including hardware, software, applications, services, interconnections and digital skills, with a high level of security and data protection; (c) deploy and operate post-exascale infrastructure, including integration with quantum computing technologies and research infrastructures for computing science and encourage the development within the Union of the hardware and software necessary for such deployment. 2. The actions under Specific Objective 1 shall be primarily implemented through the European High Performance Computing Joint Undertaking established by Regulation (EU) 2018/1488.
Specific Objective 2 – Artificial Intelligence
1. The financial contribution from the Union under Specific Objective 2 – Artificial Intelligence shall pursue the following operational objectives: (a) build up and strengthen core AI capacities and knowledge in the Union, including building up and strengthening quality data resources and corresponding exchange mechanisms, and libraries of algorithms, while guaranteeing a human-centric and inclusive approach that respects Union values; (b) make the capacities referred to in point (a) accessible to businesses, especially SMEs and start-ups, as well as civil society, not-for-profit organisations, research institutions, universities and public administrations, in order to maximise their benefit to the European society and economy; (c) reinforce and network AI testing and experimentation facilities in Member States; (d) develop and reinforce commercial application and production systems in order to facilitate the integration of technologies in value chains and the development of innovative business models and to shorten the time required to pass from innovation to commercial exploitation and foster the uptake of AI-based solutions in areas of public interest and in society. AI-based solutions and data made available shall respect the principle of privacy and security by design and shall fully comply with data protection legislation. 2. The Commission, in accordance with Union and international law, including the Charter, and taking into account, inter alia, the recommendations of the High-Level Expert Group on Artificial Intelligence, shall set out ethical requirements in the work programmes under Specific Objective 2. Calls for proposals, calls for tenders and grant agreements shall include the relevant requirements set out in those work programmes. Where appropriate, the Commission shall carry out checks to ensure compliance with those ethical requirements. Funding for actions which do not comply with the ethical requirements may be suspended, terminated or reduced at any time in accordance with the Financial Regulation. 3. The actions under Specific Objective 2 shall be implemented primarily through direct management. The ethical and legal requirements referred to in this Article shall apply to all actions of Specific Objective 2, regardless of the method of implementation.
Specific Objective 3 – Cybersecurity and Trust
1. The financial contribution from the Union under Specific Objective 3 – Cybersecurity and Trust shall pursue the following operational objectives: (a) support the building-up and procurement of advanced cybersecurity equipment, tools and data infrastructures, together with Member States, in order to achieve a high common level of cybersecurity at European level, in full compliance with data protection legislation and fundamental rights, while ensuring the strategic autonomy of the Union; (b) support the building-up and best use of European knowledge, capacity and skills related to cybersecurity and the sharing and mainstreaming of best practices; (c) ensure a wide deployment of effective state-of-the-art cybersecurity solutions across the European economy, paying special attention to public authorities and SMEs; (d) reinforce capabilities within Member States and private sector to help them comply with Directive (EU) 2016/1148 of the European Parliament and of the Council ( 25 ) including through measures supporting the uptake of cybersecurity best practices; (e) improve resilience against cyberattacks, contribute towards increasing risk-awareness and knowledge of cybersecurity processes, support public and private organisations in achieving basics levels of cybersecurity, for example by deploying end-to-end encryption of data and software updates; (f) enhance cooperation between the civil and defence spheres with regard to dual-use projects, services, competences and applications in cybersecurity, in accordance with a Regulation establishing the European Cybersecurity Industrial, Technology and Research Competence Centre and the Network of National Coordination Centres (the ‘Cybersecurity Competence Centre Regulation’). 2. The actions under Specific Objective 3 shall be implemented primarily through the European Cybersecurity Industrial, Technology and Research Competence Centre and the Network of National Coordination Centres in accordance with the Cybersecurity Competence Centre Regulation.
Specific Objective 4 – Advanced Digital Skills
1. The financial contribution from the Union under Specific Objective 4 – Advanced Digital Skills shall support the development of advanced digital skills in areas covered by the Programme in order to contribute to increasing Europe’s talent pool, bridge the digital divide and foster greater professionalism, especially with regard to high performance and cloud computing, big data analytics, cybersecurity, distributed ledger technologies (e.g. blockchain), quantum technologies, robotics, AI, while taking gender balance into account. In order to tackle skills mismatches and to encourage specialisation in digital technologies and applications, the financial contribution shall pursue the following operational objectives: (a) support the design and delivery of high-quality, long-term training and courses, including blended learning, for students and for the workforce; (b) support the design and delivery of high-quality, short-term training and courses for the workforce, in particular in SMEs and in the public sector; (c) support high-quality on-the-job training and work placements for students, including traineeships, and the workforce, in particular in SMEs and in the public sector. 2. The actions under Specific Objective 4 shall be implemented primarily through direct management.
Specific Objective 5 – Deployment and Best Use of Digital Capacities and Interoperability
1. The financial contribution from the Union under Specific Objective 5 – Deployment and Best Use of Digital Capacities and Interoperability shall pursue the following operational objectives while bridging the digital divide: (a) support the public sector and areas of public interest, such as health and care, education, judiciary, customs, transport, mobility, energy, environment, cultural and creative sectors, including relevant businesses established within the Union, to effectively deploy and access state-of-the-art digital technologies, such as HPC, AI and cybersecurity; (b) deploy, operate and maintain trans-European interoperable state-of-the-art digital service infrastructures across the Union, including related services, in complementarity with national and regional actions; (c) support the integration and use of trans-European digital service infrastructures and of agreed European digital standards in the public sector and in areas of public interest to facilitate cost-efficient implementation and interoperability; (d) facilitate the development, update and use of solutions and frameworks by public administrations, businesses and citizens, including of open-source solutions and the re-use of interoperability solutions and frameworks; (e) offer the public sector and the Union industry, in particular SMEs, easy access to testing and piloting of digital technologies and increase the use thereof, including their cross-border use; (f) support the uptake by the public sector and the Union industry, in particular SMEs and start-ups, of advanced digital and related technologies, including in particular HPC, AI, cybersecurity, other leading edge and future technologies, such as distributed ledger technologies (e.g. blockchain); (g) support the design, testing, implementation, and deployment and maintenance of interoperable digital solutions, including digital government solutions, for public services at Union level which are delivered through a data-driven reusable solutions platform aiming to foster innovation and establish common frameworks in order to unleash the full potential of the public administrations’ services for citizens and businesses; (h) ensure the continuous capacity at Union level to lead digital development, in addition to observing, analysing and adapting to fast-evolving digital trends, and share and mainstream best practices; (i) support cooperation towards achieving a European ecosystem for trusted data sharing and digital infrastructures using, inter alia, services and applications based on distributed ledger technologies (e.g. blockchain), including support for interoperability and standardisation and by fostering the deployment of Union cross-border applications based on security and privacy by design, while complying with consumer and data protection legislation; (j) build up and strengthen the European Digital Innovation Hubs and their network. 2. The actions under Specific Objective 5 shall be implemented primarily through direct management.
Budget
1. The financial envelope for the implementation of the Programme for the period from 1 January 2021 to 31 December 2027 shall be EUR 7 588 000 000 in current prices. 2. The indicative distribution of the amount referred to in paragraph 1 shall be: (a) EUR 2 226 914 000 for Specific Objective 1 – High Performance Computing; (b) EUR 2 061 956 000 for Specific Objective 2 – Artificial Intelligence; (c) EUR 1 649 566 000 for Specific Objective 3 – Cybersecurity and Trust; (d) EUR 577 347 000 for Specific Objective 4 – Advanced Digital Skills; (e) EUR 1 072 217 000 for Specific Objective 5 – Deployment and Best Use of Digital Capacities and Interoperability. 3. The amount referred to in paragraph 1 may also be used for technical and administrative assistance for the implementation of the Programme, such as preparatory, monitoring, control, audit and evaluation activities, including by using corporate information technology systems. 4. Budgetary commitments for actions extending over more than one financial year may be broken down over several years into annual instalments. 5. Resources allocated to Member States under shared management may, at the request of the Member State concerned, be transferred to the Programme, subject to the conditions set out in the relevant provision of the Common Provisions Regulation for 2021-2027, including for the purpose of complementing grants awarded to an action, up to 100 % of the total eligible cost where possible, without prejudice to the co-financing principle laid down in Article 190 of the Financial Regulation and to the State aid rules. The Commission shall implement those resources directly in accordance with point (a) of the first subparagraph of Article 62(1) of the Financial Regulation or indirectly in accordance with point (c) of that subparagraph. Those resources shall be used for the benefit of the Member State concerned. 6. Where the Commission has not entered into a legal commitment under direct or indirect management for resources transferred in accordance with paragraph 5 of this Article, the corresponding uncommitted resources may be transferred back to one or more respective source programmes, at the request of the Member State concerned, in accordance with the conditions set out in the relevant provision of the Common Provisions Regulation for 2021-2027. 7. In accordance with point (a) of the second subparagraph of Article 193(2) of the Financial Regulation, in duly justified cases specified in the financing decision and for a limited period, actions supported under this Regulation and the underlying costs may be considered to be eligible as of 1 January 2021, even if they were implemented and incurred before the grant application was submitted.
Third countries associated to the Programme
1. The Programme shall be open to the participation of the following third countries through association or partial association, in accordance with the objectives laid down in Article 3: (a) members of the European Free Trade Association, which are members of the European Economic Area, in accordance with the conditions laid down in the Agreement on the European Economic Area; (b) acceding countries, candidate countries and potential candidates, in accordance with the general principles and general terms and conditions for the participation of those countries in Union programmes established in the respective framework agreements and Association Council decisions or in similar agreements and in accordance with the specific conditions laid down in agreements between the Union and those countries; (c) European Neighbourhood Policy countries, in accordance with the general principles and general terms and conditions for the participation of those countries in Union programmes established in the respective framework agreements and Association Council decisions or in similar agreements and in accordance with the specific conditions laid down in agreements between the Union and those countries; (d) other third countries, in accordance with the conditions laid down in a specific agreement covering the participation of the third country to any Union programme, provided that the agreement: (i) ensures a fair balance as regards the contributions and benefits of the third country participating in the Union programmes; (ii) lays down the conditions of participation in the programmes, including the calculation of financial contributions to individual programmes and their administrative costs; (iii) does not confer on the third country any decision-making power in respect of the Union programme; (iv) guarantees the rights of the Union to ensure sound financial management and to protect its financial interests; The contributions referred to in point (d)(ii) of the first subparagraph shall constitute assigned revenues in accordance with Article 21(5) of the Financial Regulation. 2. Association or partial association of third countries to the Programme shall be without prejudice to Article 12(5).
International cooperation
1. The Union may cooperate with third countries as referred to in Article 10, with other third countries and with international organisations or bodies established in those countries, in particular within the framework of the Euro-Mediterranean and Eastern Partnerships and with neighbouring countries, especially those of the Western Balkans and Black Sea regions. Without prejudice to Article 18, related costs incurred shall not be covered by the Programme. 2. Cooperation with third countries and organisations as referred to in paragraph 1 of this Article with respect to Specific Objectives 1, 2 and 3 shall be subject to Article 12.
Security
1. Actions carried out under the Programme shall comply with applicable security rules, including with Union and national law and in particular in relation to the protection of the classified information against unauthorised disclosure. In the case of actions carried out outside the Union using or generating classified information, in addition to compliance with above requirements such actions shall be subject to a security agreement concluded between the Union and the third country in which the activity is conducted. 2. Where appropriate, proposals and tenders to be submitted by applicants shall include a security self-assessment that identifies any security issues and details how those issues are to be addressed in order to comply with Union and national law. 3. Where appropriate, the Commission or the body entrusted with the implementation of the Programme shall carry out a security review of proposals for funding submitted by applicants that raise security issues. 4. Where appropriate, the actions carried out under the Programme shall comply with Commission Decision (EU, Euratom) 2015/444 ( 26 ) and the rules implementing that Decision. 5. The work programme may also provide that legal entities established in associated countries and legal entities that are established in the Union but are controlled from third countries are not eligible to participate in all or some actions under Specific Objective 3 for duly justified security reasons. In such cases, calls for proposals and calls for tenders shall be restricted to legal entities established or deemed to be established in Member States and controlled by Member States or by nationals of Member States. 6. If duly justified for security reasons, the work programme may also provide that legal entities established in associated countries and legal entities that are established in the Union but are controlled from third countries may be eligible to participate in all or some actions under Specific Objectives 1 and 2 only if they comply with the requirements to be fulfilled by those legal entities to guarantee the protection of the essential security interests of the Union and the Member States and to ensure the protection of classified documents information. Those requirements shall be set out in the work programme. 7. Where appropriate, the Commission or the body entrusted with the implementation of the Programme shall carry out security checks. Funding for actions which do not comply with the security requirements referred to in this Article may be suspended, terminated or reduced at any time, in accordance with the Financial Regulation.
Synergies with other Union programmes
1. The Programme shall enable synergies with other Union programmes, as described in Annex III, in particular through arrangements for complementary funding from Union programmes where the management arrangements allow it. Funding from other programmes may be deployed in sequence, in an alternating way, or through the combination of funds, including the joint funding of actions. The Commission shall ensure that the achievement of the specific objectives is not hampered when leveraging the complementary character of the Programme with other Union programmes. 2. The Commission shall ensure the overall consistency and complementarity of the Programme with the relevant policies and Union programmes in cooperation with the Member States. To that end, the Commission shall facilitate the setting up of appropriate mechanisms for coordination between relevant authorities and between such authorities and the Commission, and shall establish appropriate monitoring tools to systematically ensure synergies between the Programme and any relevant Union funding instruments. The arrangements referred to in paragraph 1 shall contribute to avoiding duplications and to maximising the positive impact of expenditure.
Implementation and forms of Union funding
1. The Programme shall be implemented under direct management, in accordance with the Financial Regulation, or under indirect management by entrusting certain implementation tasks to the bodies referred to in point (c) of the first subparagraph of Article 62(1) of the Financial Regulation, in accordance with Articles 4 to 8 of this Regulation. Bodies entrusted with the implementation of the Programme may depart from the rules on participation and dissemination laid down in this Regulation only where such departure is provided for in the legal act that establishes those bodies or entrusts budget implementation tasks to them or, for the bodies referred to in point (c)(ii), (iii) or (v) of the first subparagraph of Article 62(1) of the Financial Regulation, where such departure is provided for in the contribution agreement and the specific operating needs of such bodies or the nature of the action so require. 2. The Programme may provide funding in any of the forms laid down in the Financial Regulation, including in particular through procurement as a primary form, or grants and prizes. Where the achievement of the objective of an action requires the procurement of innovative goods and services, grants may be awarded only to beneficiaries that are contracting authorities or contracting entities as defined in Directives 2014/24/EU ( 27 ) and 2014/25/EU ( 28 ) of the European Parliament and of the Council. Where the supply of innovative goods or services that are not yet available on a large-scale commercial basis is necessary to achieve the objectives of an action, the contracting authority or the contracting entity may authorise the award of multiple contracts within the same procurement procedure. For duly justified reasons of public security, the contracting authority or the contracting entity may require that the place of performance of the contract be situated within the territory of the Union. The Programme may also provide financing in the form of financial instruments within blending operations. 3. Contributions to a mutual insurance mechanism may cover the risk associated with the recovery of funds due by recipients and shall be considered to be a sufficient guarantee under the Financial Regulation. Article 37 of Regulation (EU) 2021/695 shall apply.
European Partnerships
The Programme may be implemented through European Partnerships and within the strategic planning between the Commission and the Member States, as referred to in Article 6 of Regulation (EU) 2021/695. Such implementation may include contributions to existing or new public-private partnerships in the form of joint undertakings established under Article 187 TFEU. For those contributions, the provisions of that Regulation relating to European Partnerships shall apply.
European Digital Innovation Hubs
1. An initial network of European Digital Innovation Hubs shall be established during the first year of the implementation of the Programme. That initial network shall consist of at least one hub for each Member State, unless there is no candidate in a given Member State that can be designated and selected in accordance with paragraphs 2 and 3. 2. For the purpose of establishing the network referred to in paragraph 1 of this Article, each Member State shall designate candidate entities in accordance with its national procedures, administrative and institutional structures through an open and competitive process, on the basis of the following criteria: (a) the appropriate competences related to the activities of the European Digital Innovation Hubs referred to in paragraph 6 of this Article and competences in one or several areas identified in Article 3(2); (b) the appropriate management capacity, staff and infrastructure necessary to carry out the activities referred to in paragraph 6 of this Article; (c) the operational and legal means to apply the administrative, contractual and financial management rules laid down at Union level; and (d) the appropriate financial viability corresponding to the level of Union funds it will be called upon to manage and demonstrated, where appropriate, through guarantees issued preferably by a public authority. 3. The Commission shall, by means of implementing acts, adopt decisions on the selection of entities forming the initial network. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 31(2). The Commission shall take the utmost account of the opinion of each Member State before selecting a European Digital Innovation Hub in its territory. The entities shall be selected by the Commission from candidate entities designated by Member States on the basis of the criteria referred to in paragraph 2 of this Article and the following additional criteria: (a) the budget available for the financing of the initial network; and (b) the need for the initial network to ensure coverage of the needs of industry and areas of public interest and to ensure comprehensive and balanced geographical coverage to improve convergence between Member States benefiting from the Cohesion Fund for 2021 to 2027 established by a Regulation of the European Parliament and of the Council and the other Member States, for example to bridge the digital divide in geographical terms. 4. If necessary, following an open and competitive process, the Commission shall, by means of implementing acts, adopt decisions on the selection of entities forming additional European Digital Innovation Hubs. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 31(2). The Commission shall take the utmost account of the opinion of the Member State before selecting an additional European Digital Innovation Hub in its territory. The Commission shall select additional European Innovation Hubs in such a way to ensure a broad geographical coverage across Europe. The number of entities of the network shall be sufficient to meet the demand for the hubs’ services in given Member States. To address the specific constraints faced by the Union’s outermost regions, specific entities may be nominated to cover the needs of such regions. 5. European Digital Innovation Hubs shall have substantial overall autonomy to lay down their organisation, composition, and working methods. 6. With respect to the implementation of the Programme, European Digital Innovation Hubs shall perform the following activities to the benefit of the Union industry, in particular SMEs and mid-caps, as well as the public sector: (a) raising awareness and providing or ensuring access to digital transformation expertise, knowhow and services, including testing and experimentation facilities; (b) assisting businesses, especially SMEs and start-ups, organisations and public administrations to become more competitive and to improve their business models through use of new technologies covered by the Programme; (c) facilitating the transfer of expertise and knowhow between regions, in particular by matching SMEs, start-ups and mid-caps established in one region with European Digital Innovation Hubs established in other regions that are best suited to providing relevant services; encouraging exchanges of skills and knowledge, joint initiatives and good practices; (d) providing or ensuring access to thematic services, in particular services related to AI, HPC and cybersecurity and trust to the public administrations, public sector organisations, SMEs or mid-caps; (e) providing financial support to third parties under Specific Objective 4. For the purposes of point (d) of the first subparagraph, European Digital Innovation Hubs may specialise in specific thematic services and shall not be required to provide all thematic services or to provide those services to all categories of entities referred to in this paragraph. 7. Where a European Digital Innovation Hub receives funding under the Programme, that funding shall be in the form of grants.
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