MEPs back European Institute of Technology - but seek budget solution

A European Parliament commission has backed the creation of a European Institute of Technology (EIT) - but on condition that a "realistic" solution is provided for its funding.

The European Commission continues to hope that this Institute can be set up in 2008. The initiative is close to the heart of President Jose Manuel Barroso, who sees it as a way to keep Europe in the race for global competitiveness.

However, the MEPs" approval is subject to several conditions. MEPs are asking for a pilot phase for the EIT, and they also want to have a say in how the institute is funded.

The project has been subject to much criticism since its launch at the beginning of 2006, notably by academics who fear it is just another bureaucratic structure. Also, due to several member states' lack of enthusiasm, the Parliament has had to downsize its ambitions, abandoning the idea of a bricks and mortar campus in favour of a virtual structure relying on a network of universities.

The institute's budget, which will be provided by a combination of public and private funds, is estimated at Euro 2.4bn for the first six years. It has been agreed that €308.7m will come from the EU budget, but there are still questions as to which precise heading will be used.

The Commission has offered to use funds from the "competitiveness for growth and jobs" heading, which are not assigned to any given policy.

The parliamentarians propose further sources, such as unused funds that would otherwise be given back to member states, or loans from the European Investment Bank (EIB). But they insist that the EU's framework programme for research and development should not be used to finance administration and establishment costs directly linked to the EIT.

The Institute will consist of a governing board, which will define strategic priorities, and of "knowledge and innovation communities" (KIC), which will develop innovation, research and teaching activities. The members of the parliamentary industry committee have asked for the introduction of a pilot phase to test the KIC, which they also want to be "legally autonomous from the EIT".

The EIT governing board would select two or three KIC in the two years following the coming into effect of the regulation establishing the institute. Other KIC could then be selected after the adoption of a "strategic innovation agenda" to define long-term objectives.

The EIT would have to establish a first agenda by the end of 2011, and then every seven years thereafter.