Key report proposes ‘ideal house’ structure for JTIs

In a high-level report to the President of the European Commission, José Manuel Barroso, a group of 'sherpas' consisting of representatives from five JTIs and two PPPs made a series of recommendations outlining the need to recognise JTIs as institutions of their own, rather than as conventional EU bodies (as is the case with the current JTIs) or as private legal entities.

The report highlights the clear advantages of such an approach: a clear commitment and explicit recognition from the EU regarding the importance of such undertakings, the possibility of drafting tailor-made provisions for PPPs (and thus JTIs) and all the immunities and privileges which are part and parcel of having the status of an international organisation.

The paper makes 15 separate recommendations, grouped by chapter, and is the result of five meetings between key representatives from EFFRA, E2BA, the five JTIs and Commission officials from various EU departments, as well as a meeting between senior industry leaders and the then Commissioners Janez Potočnik (formerly for Research) and Viviane Reding (formerly for Information Society and Media).

Extensive deliberations between the EU and the private partners finally led to the publication of the report presented to President Barroso on 27 January 2010, with the aim of learning from past experiences in setting up the first wave of JTIs, which provoked various teething troubles and exposed the need to iron out certain administrative bottlenecks which hampered their speedy establishment.

The need to recognise the differing priorities of both partners was also highlighted, such as the need to reconcile ambitious EU plans with the short-term drive for profit in the private sector and the adoption of a more ‘risk-friendly’ approach on the part of the Commission.

It is hoped that JTI set-ups will now take place more smoothly and that specific rules will be put in place for these legal entities, notably regarding the EU’s Financial Regulation, whose adoption proved particularly burdensome to the industry-driven private partners the first time round.

The final report is can be viewed here.