Ref. Ares(2019)5332022 - 21/08/2019
TABLE OF CONTENTS
0. AGENDA OF MEETING / PROGRAMME OF EVENT
Page No 3
KEY MESSAGES
Page No 4
1. STEERING BRIEF
Page No 5
1.1 Scene setter
Page No 5
1.2 Objectives
Page No 6
1.3 Line to take
Page No 7
1.3.1 European Fund for Strategic Investment (EFSI)
Page No 7
1.3.2 Energy Research and Innovation
Page No 7
1.3.3 Big Data/Cloud Computing
Page No 7
2. SPEAKING POINTS
Page No 9
2.1. European Fund for Strategic Investments (EFSI)
Page No 10
2.2 Energy Research and Innovation in the Context of the Energy Union
Page No 12
2.3. Big Data / Cloud Computing
Page No 10
2.4. Opportunity for GE to become Associated partner in IMI
Page No 14
3. DEFENSIVE POINTS
Page No 15
3.1 European Fund for Strategic Investment (EFSI)
Page No 15
3.2 Energy Research and Innovation
Page No 15
4. BACKGROUND INFORMATION
Page No 17
4.1 CVs
Page No 17
4.2 GE in Europe infographic
Page No 18
4.3 Big data / Cloud computing
Page No 19
4.4 Participation of General Electric to FP7 and Horizon 2020
Page No 20
2/20
0. AGENDA OF MEETING / PROGRAMME OF EVENT
There is no formal agenda but the following topics have been suggested:
• European Fund for Strategic Investments (EFSI)
• Energy policy/research and innovation
• Big data/cloud computing
Other topics that could be raised include:
• Preliminary Commission enquiry into General Electric's proposed takeover of
Alstom's energy business
3/20
Key messages
• The European Fund for Strategic Investments (EFSI) will mobilise
critically needed additional investment across Europe; contributions from
the private sector, including major players such as General Electric (GE),
are essential.
• The Energy Union relies on research and innovation to be a success;
innovation leaders such as GE have an important role to play.
• Big Data analytics and Cloud Computing offer significant opportunities
for both economic development and the advancement of science.
• Controversial Issue: The European Commission opened an in-depth
investigation to assess whether GE's proposed acquisition of the Thermal
Power, Renewable Power & Grid businesses of Alstom is in line with the
EU Merger Regulation.
4/20
1.2 Objectives
• Become acquainted with the
General Electric,
, and exchange views,
particularly with regard to research and innovation and investment priorities, with a focus
on energy and big data/cloud computing.
• Communicate the importance of EFSI to stimulate further investment in Europe, and
invite views and contributions from
/General Electric.
• Outline the Energy Union initiative, explain the role of the private sector for its success,
and invite contributions from
/General Electric.
• Share information about European Commission initiatives regarding Big Data and cloud
computing, particularly the Digital Single Market Initiative and the European Research
Cloud.
• Share information about the opportunities offered by the Innovative Medicines Initiative
for companies beyond pharma to become Associated Partners.
6/20
1.3 Line to take
1.3.1 European Fund for Strategic Investment (EFSI)
•
Stress that EFSI will raise EUR 315 billion in additional investment which otherwise
would not materialise.
•
Underline that a key goal of the EFSI is to generate investment in research and innovation
and to turn Europe into a knowledge-based economy.
•
Highlight that projects will be chosen based on strict quality criteria; there will be no
country-specific or sector-specific quotas.
•
Emphasise that contributions from industry and innovation leaders such as General
Electric, with its strong European base, would be especially welcome.
1.3.2 Energy Research and Innovation
•
Highlight the key benefits of the Energy Union – making the European energy system
more secure, sustainable, affordable and competitive.
•
Stress that Research and Innovation is crucial for the success of the Energy Union and is
one of its five mutually-reinforcing and closely interrelated dimensions.
•
Emphasise that creating stronger partnerships between industry, public administration and
research and innovation actors is vital. Contributions from the private sector will be
especially important, particularly from industry and innovation leaders such as GE.
•
Inform that DG RTD is currently collecting views of private stakeholders on EU
regulatory bottlenecks to innovation. GE’s suggestions on this issue would be welcome.
1.3.3 Big Data/Cloud Computing
•
Stress that the European Commission with its Digital Single Market (DSM) initiative aims
to provide a truly European single market for digital innovators like GE to operate under
favourable conditions.
•
Emphasise that EU Research Framework Programmes, and in particular Horizon 2020,
have been the biggest single transnational EU Programmes to support the development
and the application of digital technologies.
•
Emphasise that Big Data Analytics is driving innovation for new products and services
and shaking up large parts of the industry, as well as the driving force behind data-driven
science.
1.3.4 Associated Partners in IMI
•
Highlight that the European Commission together with the pharmaceutical industry has
created the largest health-related research and innovation public-private partnership in the
world, the Innovative Medicines Initiative IMI.
7/20
• In 2014 IMI2 was launched with a total budget of € 3.3 billion. It is open for health-
related industries such as GE to become Associated Partners, thereby becoming involved
in the definition of research priorities to be supported by EU funding, in return for at least
equal in-kind contributions.
8/20
2. SPEAKING POINTS
2.1. European Fund for Strategic Investments (EFSI)
• Launching the European Fund for Strategic Investments (EFSI) was one of the first acts of
the new Commission. Its goal is to mobilise the financing of new investments that would
otherwise not take place, and is aimed at strategic projects around Europe to ensure that
money reaches the real economy. We are committed to raising an extra EUR 315 billion,
using the expertise and credit rating of the EIB, and to stimulating private capital.
• President Juncker has been clear from the start that projects will be chosen on strict
quality criteria and no country-specific or sector-specific quotas. This is critical so as to
crowd in private investors and private capital.
• Projects will be selected based on their additionality (that is, that they could not secure
financing through other means), as well as their economic viability, reliability and
credibility, and from key growth-enhancing areas in line with EU policies. These include
knowledge, innovation and the digital economy; energy union; transport infrastructure;
social infrastructure; and natural resources and the environment.
• Horizon 2020, the principal European Research and Innovation programme (nearly €80
billion for the period 2014-2020) and the Investment Plan share similar goals and are
therefore complementary and mutually reinforcing. At the same time, EFSI will have a
different risk profile from Horizon 2020 and will be able to support higher risk projects,
which is key for research and innovation.
• Contacts with the private sector have shown that investors put particular emphasis on the
robust quality and independent selection of projects that could be supported by the
Investment Plan. Projects should be (1) economically viable with the support of the
initiative, (2) sufficiently mature to be appraised on a global or local basis, (3) of
European added value and consistent with EU policy priorities (such as, for example, the
2030 climate and energy package, Europe 2020 Strategy and other long-term EU strategic
priorities). Moreover, projects should not be limited to cross-border projects.
• The European Commission would be interested in your views on EFSI, and more
particularly, what contribution an industry and innovation leader such as General Electric,
with its strong European base, could make to increase strategic investments and raise the
level of innovation in Europe, especially in the energy domain.
9/20
2.2 Energy Research and Innovation in the Context of the Energy Union
Introduction
• Just like EFSI, the Energy Union is part of the Juncker Commission's top priorities. It
brings together all relevant aspects of the EU's energy policy-making and its research and
innovation activities in the energy and related domains, including climate change and
transport.
• Its fundamental goal is to give EU consumers, households and businesses, secure,
sustainable, competitive and affordable energy. Achieving this goal will require a
fundamental transformation of Europe's energy system, a greater level of cooperation and
more solidarity among the 28 Member States.
• The European energy system faces ever more pressing needs to ensure secure (e.g. crisis
with Ukraine and Russia and the fact that the EU imports more than 50% of the energy it
consumes – 53% in 2013), sustainable (e.g. ambitious in coherence with EU position in
the 21th Conference of Parties COP 21 on Climate (United Nations Framework
Convention on Climate Change in Paris on 2015), affordable and competitive energy for
all citizens. In its present state, and without a fundamental transformation that transcends
old technologies, business models, and governance structures, our energy system is simply
not up to the challenge.
• The Energy Union was launched on 25 February 2015 and was well received by both the
Member States and the general public. It is now winding its way through the European
institutions. The European Council of 19 March gave it its blessing and will come back to
review progress before the end of the year.
Energy Union and Research & Innovation
• The Energy Union will rely heavily on Research and Innovation (R&I). R&I is one of the
five mutually-reinforcing and closely interrelated dimensions of the Energy Union and it
also underpins the delivery of the other four dimensions:
o Energy security, solidarity and trust (e.g. diversification of energy supply thanks to
new technologies);
o A fully integrated European energy market (e.g. socio-economic research related
to the role of citizens);
o Energy efficiency contributing to moderation of demand (e.g. in buildings but also
importantly in industrial processes and manufacturing); and
10/20
o Decarbonising the economy (e.g. low-carbon technologies - renewables as well as
nuclear – including transport with alternative fuels).
• A revitalised R&I strategy lies at the very heart of the Energy Union. We are still leaders
in innovation and renewable energy, but other parts of the world are catching up fast and
we have already lost ground when it comes to some clean, low carbon technologies (e.g.
first generation photovoltaics).
Research & Innovation Actions in the Energy Union
• R&I actions will be grouped around the following four core priorities, to which Member
States and the Commission would commit:
o First, being the world leader in developing the next generation of renewable
energy technologies, including the environmentally-friendly production and use of
biomass and biofuels, together with energy storage;
o Second, facilitating the participation of consumers in the energy transition through
smart grids, smart home appliances, smart cities, and home automation systems;
o Third, efficient energy systems, and harnessing technology to make our buildings
energy neutral;
o And finally, more sustainable transport systems which will develop and deploy
large-scale innovative technologies and services to increase energy efficiency and
to reduce greenhouse gas emissions.
• In addition to these four common priorities, more coordination will also be required
addressing carbon capture and storage as well as safer nuclear energy, within those
Member States active in these fields. These two technologies are part of the EU's overall
strategy for decarbonising the energy system.
• These actions will be at the core of a new strategy for R&I which will be at the very heart
of the Energy Union. This new strategy will encompass:
o An updated Strategic Energy Technology (SET) Plan (all R&I aspects related to
the demand and production of energy including its optimisation);
o Research & Innovation agenda (use of energy in transport which is responsible for
25% of all C02 emissions in the EU);
o An initiative on EU global technology and innovation leadership on energy and
climate to boost growth and job.
11/20
• The implementation of this new strategy will be supported by Horizon 2020, the European
Research and Innovation programme (nearly €80 billion for the period 2014-2020). In
particular, the public-private partnerships on Fuel Cells and Hydrogen (new energy
technologies), Clean Sky (greener aircraft), Bio-Based Industries (next generation of
biofuels), Energy-efficient Buildings, Green Vehicles, Sustainable Process Industry
(energy efficiency in industrial processes), and the European Metrology Programme (new
standards for energy applications) will provide direct inputs. Investments in these
partnerships will amount to more than €12 billion over seven years, half coming from
public funds (through Horizon 2020) and half from industry.
• The success of the Energy Union will rely largely on attracting more private investment
and this of course also applies to R&I. I will ensure that a set of new financial instruments
are put in place to foster this investment by supporting part of the risks associated to
innovative projects that are ready to be deployed to the market. This represents a new
approach for R&I in Europe, which was concentrated until recently not on investment but
on grants.
• Contributions from industry-leading companies such as General Electric which is firmly
anchored in Europe, are critical for making this new approach a reality.
• In addition, Horizon 2020, the EU's main instrument to fund Research and Innovation
particularly in the domains where GE is strong, is open to the world and we welcome your
participation.
• I would be interested to hear your views about the Research and Innovation priorities of
the Energy Union, and if these new orientations might influence the way General Electric
is investing in Europe.
• As a major industrial player worldwide, have you identified in the EU specific regulatory
barriers to innovation in your areas of activities which hinder innovation? I would be
most interested at receiving your views on this issue.
2.3. Big Data / Cloud Computing
• Big Data analytics are instrumental for improving productivity and reliability in every
activity area, including energy, transportation, manufacturing, health and science.
12/20
• In addition to its great economic benefits, using Big Data analytics can have an equally
important positive impact on the environment, by reducing energy consumption and
waste.
• In response to these opportunities, the Digital Single Market, another top priority of the
Juncker Commission, under the leadership of Vice President Ansip, will identify and
address problems that might impede the free movement of goods, persons, services and
capital in the digital economy and hold back digital innovation.
• The Digital Single Market addresses a broad range of issues, including several issues that
affect Big Data analytics and Cloud Computing:
Copyright and digital licencing framework;
Revision of Data protection legislation. One legal framework for all Europe;
Regulatory framework for telecom operators and content providers;
Actions on Security, contractual law etc.;
Actions on open access to data.
• The application of Big Data Analytics to science, data-driven science, is a major factor
underpinning the transition towards Open Science. It contributes to making science more
efficient (through faster knowledge circulation and more synergies); more reliable
(through open access and easier replicability); and more responsive to the needs of
society. Horizon 2020 for the first time requires Open Access for all scientific
publications funded under the programme.
• A particular aspect which has been identified as crucial is the possibility for all
researchers from any field to have access to a universal Open Science Cloud, where the
results of his/her research can be easily stored and later managed, and where he/she will
have easy and free-of-charge access to the data from other researchers.
• This would make research data accessible from anywhere (provided access rights have
been granted) thus facilitating Big Data Analytics and data-driven science.
• This is not new for the business sector, where Cloud Computing services allow firms to
scale up or down their ICT capacity (data storage, management and processing) with very
little setup cost.
• I would be interested to hear your views about a future European Open Science Cloud, as
well as any concrete contribution General Electric could make.
13/20
2.4. Opportunity for GE to become Associated Partner in IMI2
• As you may be aware, together with the European pharmaceutical industry as represented
by EFPIA (European Federation of Pharmaceutical Industries and Associations) the
European Commission in 2008 created the largest public-private partnership in health
research and innovation in the world, the Innovative Medicines Initiative (IMI).
• IMI has proven that it can bring together researchers from academia, SMEs and large
industry to address public health issues of vital interests for citizens, delivering on new
approaches for diagnosis, patient stratification and therapy in diseases such as diabetes or
Alzheimer's.
• In the second round of IMI, started last year, we have decided to make it open to
industries beyond pharma to become Associated Partners, thereby becoming fully
involved in the strategy setting.
• I consider that this offers a great opportunity for the healthcare business of GE to
becoming involved in IMI and I would be happy to make the necessary connections
between your company and the IMI programme office as well as the pharma industry
association EFPIA.
14/20
3. DEFENSIVE POINTS
3.1 European Fund for Strategic Investment (EFSI)
When do you expect a final decision on the EFSI? What is the state of the negotiations with
the European Parliament?
The normal procedures are taking their course and we will have to wait for the results,
probably by July. The European Parliament is on-board in principle but would like a greater
role in the governance of the EFSI and has doubts regarding the planned transfer of funds
from Horizon 2020 and the Connecting Europe Facility (CEF). Discussions are ongoing.
What is your response to those saying that it wrong to divert money from Horizon 2020 to
the EFSI?
It is true that the proposed redeployment of EUR 2.7 billion from Horizon 2020 has been
criticized by some, but it represents only 3.5% of the total budget for 2014-2020. Moreover,
EFSI will itself contribute a great deal to innovation in Europe; it's goals are therefore
complementary to those of Horizon 2020 and there will be many synergies.
3.2 Energy Research and Innovation
In your opinion, when will the European Commission make its decision regarding the
proposed acquisition of the Thermal Power, Renewable Power & Grid businesses of
Alstom? What do you think will be the outcome?
I cannot prejudge the outcome of the preliminary investigation, but I do share the concerns of
my colleagues that this acquisition would affect the market for heavy-duty gas turbines that
are used in gas-fired power plants. It would notably eliminate one of the three main global
competitors to GE in this market, which could have negative consequences for competition
but also innovation and research in this area in Europe. I think the Commission will be
particularly vigilant with regard to GE's commitment to maintain a substantial level of R&D
in Europe and to help boost its economy, and it will be mindful of preserving competition in
the field of heavy-duty gas turbines.
GE is already one of the main global players in the market for heavy-duty gas turbines, a
position that will only grow stronger following the acquisition of Alstom's Thermal Power,
Renewable Power & Grid businesses. Given our strong interest in this sector, we are
concerned that gas-fired power plants in many parts of Europe have been forced to close
and that gas can no longer compete with cheap coal, despite its obvious environmental
benefits. What does the Commission intend to do to change this situation?
Gas markets tend to be regional not global, which explains why there are price differentials
across Europe and compared to markets elsewhere. At the same time, the shale-gas boom in
North America has made more and cheaper coal available in world markets. We are
addressing this situation in different ways. For example, the Energy Union initiative puts
much emphasis on a unified energy market all across Europe, which should help to unify and
lower prices also for gas. Better interconnects and pooling of gas reserves should have a
further positive effect. In addition, the planned reform of the EU Emissions Trading System
15/20
will help gas become more competitive with coal. With regard to R&I, making coal and gas
power plants more efficient and more flexible is a priority in H2020 and the SET Plan.
We wonder if and in what way the acquisition of Alstom might have an impact on our
access to EU R&I programmes. How is the European Commission going to address this
issue?
Horizon 2020 is fully open to international participation, provided that participants from
developed economies such as the US bring their own resources to share in the benefits. The
main benefits of international innovation partnerships are knowledge sharing and pooling of
resources. Naturally, we have an interest also in sharing in the results of such partnerships,
notably in terms of intellectual property, jobs, and industrial value chains. Any EU legal
entity including subsidiaries of US companies are eligible for receiving EU funding but
performing R&D and exploiting results in Europe are key aspects to be taken into
consideration during the evaluation process.
16/20
4.2 GE in Europe infographic
18/20
4.3 Big data / Cloud computing
Big Data
• Big Data is a term that is used in connection to Data Sets that are so large and complex
that traditional Data Processing tools cannot handle.
• Big Data is often defined as Data that are characterised by the three Vs: Volume, Velocity
and Variety. Velocity refers to how fast data are produced, and variety to the fact that Big
Data are often heterogeneous i.e. they do not fit into neatly designed data base schemas
like data of traditional databases.
• Advancements in Data Science make it possible to handle Data of such Volume and
complexity, using specialised software and hardware.
Big Data and Science
• Big Data analytics have application in many fields, including Science. Access to vast
amount of data and to the tools to analyse these Data makes it possible to use more
inductive methods for Research, enabling Scientists to make connections that are not
apparent.
• The power of Big Data comes from combining data from different sources. Often one
Data Set alone has little value. Its value is increased when combined with other Data sets
from different sources. Open Access to data is therefore the catalyst for creating the right
conditions for Data Intensive Science.
• The European Commission is promoting open access to data, under the EU's Framework
Programme for Research, Horizon 2020.
• The European Commission also helps initiatives that bring different actors in the Research
and Industry areas together, to form partnerships that aim in preserving and giving access
to large data sets to its partners. Examples: Copernicus, Helix Nebula Science Cloud
• In addition to Open Access of scientific data the Commission is supporting
standardisation efforts that address issues of interoperability and discoverability of
scientific data. This is done through its support to the Research Data Alliance a bottom up
initiative which is built on the model of the Internet Engineering Task Force (IETF), the
open standards organisation that produces and maintains the standards for the Internet.
European Research and Science Cloud initiative
Several research infrastructures already host scientific data in a decentralised fashion.
Additional science data is stored locally and is often inaccessible. As of today, there is no
single Europe Research and Science Cloud. Commission and MS-funded initiatives in this
domain are seminal, thus there is no directly usable blueprint for technical, financial and
governance choices.
The European Research and Science Cloud initiative aims to offer European researchers a
virtual environment with open and seamless services for data storage, management and
analysis, notably by bringing existing and newly developed e-infrastructures under a common
governance structure and by supporting the development of services for data analysis and
exploitation. The European Research and Science Cloud initiative is part of Europe´s
ambition to support the transition to Open Science; it aims to meet an urgent, real and specific
19/20