ISA2 will make it easier for citizens and businesses to access public services in other member states, the Luxembourg presidency of the European Council and the European Parliament said in a statement.
ISA2 builds on a predecessor programme called ISA (interoperability solutions for European public administrators), set up to improve electronic cross-border or cross-sector interaction between European public administrations. ISA will expire at the end of 2015.
To date, the ISA programme has developed tools including a platform for sharing and reusing IT solutions, an e-procurement service, a machine translation service, plus tools to manage and share reference codes and semantic standards.
The new programme will run from 2016 to 2020, with a budget of around €131 million, the statement said. It will improve interaction in government, health, invoicing and procurement, and will "make a significant contribution to the modernisation of European public services", the statement said.
The agreement has still to be confirmed by member states and the presidency will present the agreed text on 23 September.