Faced with a deadlock over the EU's 2011 budget, the European Commission
will present today (26 November) "an alternative approach" to fund the
bloc's multi-billion euro ITER project for nuclear fusion.
In a working
paper, the European Commission admits that the governance and
funding of ITER are "not well-suited to the direct management of the EU
institutions".
It also makes clear that it does not intend to pour additional money
into the project if new problems arise.
The alternative plan will be discussed by EU ministers in charge of
competitiveness at their meeting in Brussels today.
Since its launch in 2001, the estimated cost of completing the
ambitious project have rocketed from an initial €5.9 billion to €16
billion (see 'Background'). In a rush to close the growing funding gap,
the Commission committed itself in July this year to paying an
extra €1.4 billion, using unspent resources from the 2010 EU budget and
redeploying funds originally earmarked for other projects.
But with a row
ongoing between the European Parliament and EU member states over
the 2011 budget, the EU risks failing to fulfil these commitments.
In fact, if there is no agreement on the 2011 budget by the end of the
year, the Commission will also be unable to use unspent resources from
the EU's 2010 budget.
"If an agreement on ITER financing is not reached in 2010, the
possibility to make use of unbudgeted margins under the 2010 expenditure
ceilings will be lost," reads the Commission's draft compromise
proposal on the 2011 budget, seen by EurActiv.
Without a deal, "the EU will not be able to guarantee its renewed
commitment to the project, which could also represent a set-back in
terms of credibility of the Union vis-à-vis its international partners,"
the paper adds.
EU member-state representatives meeting in Brusselsyesterday (25
November)reached an agreement to guarantee the provision of extra
funding needed for ITER. However, the details of the agreement are
unclear and will in any case need to be given the green light by the
European Parliament.
Revising the EU's financial commitment
Faced with these uncertainties, the EU executive is considering "an
alternative approach" based on the principle that in future there should
be "no assumption that the EU should make up any shortfalls," reads the
working paper on EU ministers' table.
Brussels favours a solution in "which the EU budget would make a stable
contribution in the form of a fixed annual contribution," reads the
document, entitled 'Towards a robust management and governance of the
ITER project'.
A funding system with fixed contributions would address uncertainties
over the future EU budget, which might have to run in emergency mode
next year and is also faced with long-term austerity pressure due to the
financial and economic crises.
A new governance for ITER?
The Commission is also proposing to make change to the governance of
the project to boost its decision-making power.
Brussels is complaining that the current set-up does not give a fair
share of power to the EU executive, despite the crucial financial role
played by the EU budget in funding the reactor's construction.
A so-called Joint European Undertaking called 'Fusion for Energy' (F4E)
is in charge of the EU's part of the international project. F4E is
based in Barcelona and is predominantly controlled by national capitals.
The EU's 27 member states and Switzerland hold 65 of a total of 70
votes on its Governing Board, leaving the Commission with just the
remaining five.
Brussels claims that the specific nature of the project "confers to the
Commission a special responsibility which needs to be reflected in the
governance," reads the working paper given to EU ministers.
"In this context, theservices of theCommission should examine whether
in the long run the legal status of a Joint Undertaking represents the
best approach for managing a project such as ITER and whether changes
are needed in the future," warns the document.