# EUR-Lex - 52012PC0123 - EN

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# 52012PC0123

**Proposal for a COUNCIL DECISION concerning the renewal of the Agreement for scientific and technological cooperation between the European Community and the Federative Republic of Brazil /* COM/2012/0123 final - 2012/0059 (NLE) */**

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EXPLANATORY MEMORANDUM

1.           The Agreement on
cooperation in science and technology (S&T) between the European Community
and Brazil entered into force on 7 August 2007. Article XII (2) of the
Agreement provides as follows: 'This Agreement shall initially be valid for a
period of five years and may be renewed by agreement between the Parties after
evaluation during the penultimate year of each subsequent renewal period.'.

2.           It is in the interest of
the European Union to renew this Agreement in order to continue to facilitate
cooperation with Brazil in common S&T priority areas leading to benefits
for both Parties.

3.           Both Parties confirmed
their intention to renew the Agreement at the fifth meeting of the EU-Brazil
Joint Steering Committee, held in Brasilia on 22 November 2011.

4.           The material content of
the renewed Agreement will be identical to that of the current Agreement.

5.           In the light of the above
considerations, the Commission requests the Council:

-         to approve, on behalf of the Union, and following the consent
of the European Parliament, the renewal of the Agreement for scientific and
technological cooperation between the European Community and the Federative
Republic of Brazil for an additional period of five years;

-        to authorise the President of the
Council to designate the person(s) empowered to notify the Government of the
Federative Republic of Brazil that the Union has completed its internal
procedures necessary for the entry into force of this renewed Agreement.

2012/0059 (NLE)

Proposal for a

COUNCIL DECISION

concerning the renewal of the Agreement
for scientific and technological cooperation between the European Community and
the Federative Republic of Brazil

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 186 in conjunction
with point (v) of Article 218(6) (a) thereof,

Having regard to the proposal from the
European Commission[1],

Having regard to the consent of the
European Parliament[2],

Whereas:

(1)       By its Decision 2005/781/EC[3] of 6 June 2005, the Council
approved the conclusion of the Agreement for scientific and technological
cooperation between the European Community and the Federative Republic of
Brazil.

(2)       Article XII (2) of the
Agreement provides as follows: 'This Agreement shall initially be valid for a
period of five years and may be renewed by agreement between the Parties after
evaluation during the penultimate year of each subsequent renewal period.'.

(3)       At the fifth meeting of
the EU-Brazil Joint Steering Committee, held on 22 November 2011 in Brasilia,
both Parties confirmed their interest in renewing the aforementioned Agreement
for another five years.

(4)       The material content of
the renewed Agreement will be identical to that of the Agreement which expires
on 6 August, 2012.

(5)       The renewal of the
Agreement for scientific and technological cooperation between the European
Community and the Federative Republic of Brazil should be approved on behalf of
the European Union,

HAS ADOPTED THIS DECISION:

Article 1

The renewal of the Agreement for scientific
and technological cooperation between the European Community and the Federative
Republic of Brazil, for an additional period of five years, is hereby approved
on behalf of the European Union.

Article 2

The President of the Council is hereby
authorised to designate the person(s) empowered, acting on behalf of the Union
and in accordance with point (2) of Article XII of the Agreement, to notify the
Government of the Federative Republic of Brazil that the Union has completed
its internal procedures necessary for the entry into force of this renewed
Agreement and make the following notification to Brazil:

'As a consequence of the entry into force
of the Treaty of Lisbon on 1 December 2009, the European Union has replaced and
succeeded the European Community and from that date exercises all rights and
assumes all obligations of the European Community. Therefore, references to
"the European Community" in the text of the Agreement are, where
appropriate to be read as "the European Union".'.

Article 3

This Decision shall enter into force on the
date of its adoption. It shall be published in the Official Journal of the
European Union.

Done at Brussels,

For
the Council

The
President

LEGISLATIVE FINANCIAL STATEMENT

1.           FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1.    Title of the proposal/initiative

1.2.    Policy
area(s) concerned in the ABM/ABB structure

1.3.    Nature
of the proposal/initiative

1.4.    Objective(s)

1.5.    Grounds
for the proposal/initiative

1.6.    Duration
and financial impact

1.7.    Management
method(s) envisaged

2.           MANAGEMENT MEASURES

2.1.    Monitoring
and reporting rules

2.2.    Management
and control system

2.3.    Measures
to prevent fraud and irregularities

3.           ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE

3.1.    Heading(s)
of the multiannual financial framework and expenditure budget line(s) affected

3.2.    Estimated
impact on expenditure

3.2.1. Summary of
estimated impact on expenditure

3.2.2. Estimated impact
on operational appropriations

3.2.3. Estimated impact
on appropriations of an administrative nature

3.2.4. Compatibility
with the current multiannual financial framework

3.2.5. Third-party
participation in financing

3.3.    Estimated
impact on revenue

LEGISLATIVE
FINANCIAL STATEMENT

1.           FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1.        Title of the
proposal/initiative

Proposal for a Council Decision concerning the
renewal of the Agreement for scientific and technological cooperation
between the European Community and the Federative Republic of Brazil.

1.2.        Policy area(s) concerned
in the ABM/ABB structure[4]

Policy strategy and coordination of,
in particular, the Directorates-General DEVCO, RTD, JRC, EAC, ENER, ENTR, INFSO
and MOVE.

1.3.        Nature of the
proposal/initiative

 ̈ The
proposal/initiative relates to a new action

 ̈ The
proposal/initiative relates to a new action following a pilot
project/preparatory action[5]

þ The
proposal/initiative relates to the extension of an existing action

 ̈ The
proposal/initiative relates to an action redirected towards a new action

1.4.        Objectives

1.4.1.     The Commission's
multiannual strategic objective(s) targeted by the proposal/initiative

The present initiative will allow both parties to improve and
intensify their cooperation in scientific and technological areas of common
interest.

1.4.2.     Specific objective(s) and
ABM/ABB activity(ies) concerned

Specific objective No 1

This decision should
allow both Brazil and the European Union to
enhance the cooperation and develop a more strategic partnership by increasing
the scale and the scope of existing cooperation addressing key societal
challenges, promoting reciprocal access to programmes and funding increasing
regional cooperation where appropriate.

1.4.3.     Expected result(s) and
impact

Specify the effects
which the proposal/initiative should have on the beneficiaries/groups targeted.

This decision will allow both Brazil and the European Union to
derive mutual benefit from the scientific and technical progress achieved
through research cooperation in their respective specific research programmes.
It will allow for exchange of specific knowledge and transfer of know-how to
the benefit of the scientific community, industry and citizens.

The renewal of this Agreement will allow for increased cooperation.

1.4.4.     Indicators of results and
impact

Specify the
indicators for monitoring implementation of the proposal/initiative.

The Commission services will regularly monitor all actions carried
out under the Agreement, which will include an evaluation by the EU. This
evaluation will consist of the following elements:

(a) performance indicators – number of proposals put forward by
Brazil per specific programme compared with the number of proposals selected
for funding under the programme;

b) data collection – based on information from the specific
programmes of the Framework programme (and information provided by Brazil to
the Joint Steering Committee provided for in the Agreement).

1.5.        Grounds for the
proposal/initiative

1.5.1.     Requirement(s) to be met in
the short or long term

This decision will allow the two parties to continue to improve and
intensify their cooperation in scientific and technological areas of mutual
benefit.

1.5.2.     Added value of EU
involvement

The
Agreement is based on the principles of mutual benefit, reciprocal access to
programmes and activities of the other party in connection with the subject of
the agreement, non-discrimination, effective protection of intellectual
property and equitable sharing of intellectual property rights. The renewal of this Agreement will allow for increased scientific
knowledge leading to market access opportunities.

1.5.3.     Lessons learned from
similar experiences in the past

Based
on the experience so far in the field of scientific and technological
cooperation, it is considered mutually beneficial to continue research
cooperation with Brazil by renewing the existing Agreement for a further five-year
period.

1.5.4.     Coherence and possible
synergy with other relevant instruments

The
renewal of the Agreement with Brazil is considered to be fully consistent with
the opening up of participation in EU Framework Programmes to the world.

1.6.        Duration and financial
impact

þ Proposal/initiative of limited
duration

–
þ  Proposal/initiative in effect from 07/08/2012 to 06/08/2017

–
þ  Financial impact from 2012 to 2017

 ̈ Proposal/initiative of unlimited
duration

–
Implementation with a start-up period from YYYY
to YYYY,

–
followed by full-scale operation.

1.7.        Management mode(s)
envisaged[6]

þ Centralised direct management by the Commission

 ̈ Centralised indirect management with the delegation of implementation tasks to:

–
 ̈  executive agencies

–
 ̈  bodies set up by the Communities[7]

–
 ̈  national public-sector bodies/bodies with public-service mission

–
 ̈  persons entrusted with the implementation of specific actions
pursuant to Title V of the Treaty on European Union and identified in the
relevant basic act within the meaning of Article 49 of the Financial Regulation

 ̈ Shared management with the Member States

 ̈ Decentralised management with third countries

 ̈ Joint management with international organisations (to be specified)

If more than one
management mode is indicated, please provide details in the 'Comments' section.

Comments

2.           MANAGEMENT MEASURES

2.1.        Monitoring and reporting
rules

Specify frequency
and conditions.

Brazil's
participation in the Framework programme is monitored on a regular basis
through meetings of the Joint Steering Committee established under Article 6 of
the Agreement.

2.2.        Management and control
system

2.2.1.     Risk(s) identified

Meetings
and bilateral contacts take place on a regular basis allowing for systematic
sharing of information and control. No risks have been identified in the
control system.

2.2.2.     Control method(s) envisaged

2.3.        Measures to prevent fraud
and irregularities

When
the implementation of the Framework programme calls for the use of external
contractors or entails granting financial contributions to third parties, the
Commission will carry out, where appropriate, financial audits, in particular
if it has reason to doubt the realistic nature of work performed or described
in the activity reports.

The
Union's financial audits will be carried out either by its own staff or by
accounting experts approved according to the law of the audited party. The
Union will choose the latter freely, while avoiding any risks of conflicts of
interest which might be indicated to it by the party subject to the audit. In
addition, the Commission will make sure, in carrying out the research
activities, that the financial interests of the Union are protected by
effective checks and, where irregularities are detected, by deterrent and
proportionate measures and penalties.

In
order to achieve this aim, rules on checks, measures and penalties, with
reference to Regulations No 2988/95, No 2185/96 and No 1073/99 will be
incorporated in all contracts used in the implementation of the Framework programme.

In
particular, the following points will have to be provided for in the contracts:

-
the introduction of specific contractual clauses to protect the financial
interests of the EU in carrying out checks and controls in relation to the work
performed;

- the
carrying out of administrative checks as part of anti-fraud measures, in
accordance with Regulations No 2185/96, No 1073/1999 and No 1074/1999;

-
the application of administrative penalties for all intentional or negligent
irregularities in the implementation of the contracts, in accordance with the Framework
Regulation No 2988/95, including a blacklisting mechanism;

-
the fact that any recovery orders in the event of irregularities and fraud must
be enforceable according to Article 299 of the Treaty on the Functioning of the
European Union.

In
addition and as a routine measure, a control programme in respect of scientific
and budgetary aspects will be carried out by the responsible staff in the DG
for Research and Innovation; an internal audit will be carried out by the
Internal Audit unit of DG Research and Innovation; and local inspections will
be undertaken by the European Court of Auditors.

3.           ESTIMATED FINANCIAL IMPACT OF THE
PROPOSAL/INITIATIVE

3.1.        Heading(s) of the
multiannual financial framework and expenditure budget line(s) affected

· Existing expenditure budget lines

In order of
multiannual financial framework headings and budget lines.

Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution

Number [Description........................................] || Diff./non-diff ([8]) || from EFTA[9] countries || from candidate countries[10] || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation

1a || 08.01.05 || non-diff. || YES || YES ||  NO || NO

· New budget lines requested

In order of multiannual financial framework
headings and budget lines.

Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution

Number [Heading............................................] || Diff./non-diff. || from EFTA countries || from candidate countries || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation

|| [XX.YY.YY.YY] || || YES/NO || YES/NO || YES/NO || YES/NO

3.2.        Estimated impact on
expenditure

3.2.1.     Summary of estimated impact
on expenditure

EUR million (to three decimal places)

Heading of multiannual financial framework: || 1a || [Heading 1a – Competitiveness for Growth and Employment]

DG: <.......> || || || Year 2012[11] || Year 2013 || Year 2014 || Year 2015 || Year 2016 || Year 2017 || || TOTAL

Ÿ Operational appropriations || || || || || || || ||

Number of budget line || Commitments || (1) || || || || || || || ||

Payments || (2) || || || || || || || ||

Number of budget line || Commitments || (1a) || || || || || || || ||

Payments || (2a) || || || || || || || ||

Appropriations of an administrative nature financed from the envelope for specific programmes[12] || || || || || || || ||

Number of budget line || 08.01.05 || (3) || || || || || || || ||

TOTAL appropriations for DG RTD || Commitments || =1+1a +3 || 0.110 || 0.110 || 0.110 || 0.110 || 0.110 || 0.110 || || 0.660

Payments || =2+2a +3 || 0.110 || 0.110 || 0.110 || 0.110 || 0.110 || 0.110 || || 0.660

Ÿ TOTAL operational appropriations || Commitments || (4) || || || || || || || ||

Payments || (5) || || || || || || || ||

Ÿ TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) || 0.110 || 0.110 || 0.110 || 0.110 || 0.110 || 0.110 || || 0.660

TOTAL appropriations under HEADING <1a.> of the multiannual financial framework || Commitments || =4+ 6 || 0.110 || 0.110 || 0.110 || 0.110 || 0.110 || 0.110 || || 0.660

Payments || =5+ 6 || 0.110 || 0.110 || 0.110 || 0.110 || 0.110 || 0.110 || || 0.660

If more than one heading is affected by the proposal /
initiative:

Ÿ TOTAL operational appropriations || Commitments || (4) || || || || || || || ||

Payments || (5) || || || || || || || ||

Ÿ TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) || || || || || || || ||

TOTAL appropriations under HEADINGS 1 to 4 of the multiannual financial framework (Reference amount) || Commitments || =4+ 6 || || || || || || || ||

Payments || =5+ 6 || || || || || || || ||

Heading of multiannual financial framework: || 5 || ' Administrative expenditure '

EUR million (to three decimal places)

|| || || Year N || Year N+1 || Year N+2 || Year N+3 || ... enter as many years as necessary to show the duration of the impact (see point 1.6) || TOTAL

DG: <.......> ||

Ÿ Human resources || || || || || || || ||

Ÿ Other administrative expenditure || || || || || || || ||

TOTAL DG <.......> || Appropriations || || || || || || || ||

TOTAL appropriations under HEADING 5 of the multiannual financial framework || (Total commitments = Total payments) || || || || || || || ||

EUR million (to three decimal places)

|| || || Year N[13] || Year N+1 || Year N+2 || Year N+3 || ... enter as many years as necessary to show the duration of the impact (see point 1.6) || TOTAL

TOTAL appropriations under HEADINGS 1 to 5 of the multiannual financial framework || Commitments || || || || || || || ||

Payments || || || || || || || ||

3.2.2.     Estimated impact on
operational appropriations

–
þ  The proposal/initiative does not require the use of operational
appropriations

–
 ̈  The proposal/initiative requires the use of operational
appropriations, as explained below:

Commitment appropriations in EUR million (to three decimal
places)

Indicate objectives and outputs ò || || || Year N || Year N+1 || Year N+2 || Year N+3 || ... enter as many years as necessary to show the duration of the impact (see point 1.6) || TOTAL

OUTPUTS

Type of output[14] || Average cost of the output || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Total number of outputs || Total cost

SPECIFIC OBJECTIVE No 1[15]... || || || || || || || || || || || || || || || ||

- Output || || || || || || || || || || || || || || || || || ||

- Output || || || || || || || || || || || || || || || || || ||

- Output || || || || || || || || || || || || || || || || || ||

Sub-total for specific objective No1 || || || || || || || || || || || || || || || ||

SPECIFIC OBJECTIVE No 2... || || || || || || || || || || || || || || || ||

- Output || || || || || || || || || || || || || || || || || ||

Sub-total for specific objective No2 || || || || || || || || || || || || || || || ||

TOTAL COST || || || || || || || || || || || || || || || ||

3.2.3.     Estimated impact on
appropriations of an administrative nature

3.2.3.1.  Summary

–
 ̈  The proposal/initiative does not require the use of administrative
appropriations

–
X  The
proposal/initiative requires the use of administrative appropriations, as
explained below:

EUR million (to three
decimal places)

|| Year 2012[16] || Year 2013 || Year 2014 || Year 2015 || Year 2016 || Year 2017 || || TOTAL

HEADING 5 of the multiannual financial framework || || || || || || || ||

Human resources || || || || || || || ||

Other administrative expenditure || || || || || || || ||

Subtotal HEADING 5 of the multiannual financial framework || || || || || || || ||

Outside HEADING 5[17] of the multiannual financial framework || || || || || || || ||

Human resources || 0.064 || 0.064 || 0.064 || 0.064 || 0.064 || 0.064 || || 0.384

Other expenditure of an administrative nature || 0.046 || 0.046 || 0.046 || 0.046 || 0.046 || 0.046 || || 0.276

Subtotal outside HEADING 5 of the multiannual financial framework || || || || || || || ||

TOTAL || 0.110 || 0.110 || 0.110 || 0.110 || 0.110 || 0.110 || || 0.660

3.2.3.2.  Estimated requirements of
human resources

–
 ̈  The proposal/initiative does not require the use of human
resources

–
þ  The proposal/initiative requires the use of human resources, as
explained below:

Estimate to be expressed in full amounts
(or at most to one decimal place)

|| || Year 2012 || Year 2013 || Year 2014 || Year 2015 || Year 2016 || Year 2017 ||

Ÿ Establishment plan posts (officials and temporary agents) ||

|| XX 01 01 01 (Headquarters and Commission’s Representation Offices) || || || || || || ||

|| XX 01 01 02 (Delegations) || || || || || || ||

|| 08 01 05 01 (Indirect research) || 0.5 || 0.5 || 0.5 || 0.5 || 0.5 || 0.5 ||

|| 10 01 05 01 (Direct research) || || || || || || ||

|| Ÿ External personnel (in Full Time Equivalent unit: FTE)[18] ||

|| XX 01 02 01 (CA, INT, SNE from the 'global envelope') || || || || || || ||

|| XX 01 02 02 (CA, INT, JED, LA and SNE in the delegations) || || || || || || ||

|| XX 01 04 yy [19] || - at Headquarters[20] || || || || || || ||

|| - in delegations || || || || || || ||

|| XX 01 05 02 (CA, INT, SNE - Indirect research) || || || || || || ||

|| 10 01 05 02 (CA, INT, SNE - Direct research) || || || || || || ||

|| Other budget lines (specify) || || || || || || ||

|| TOTAL || 0.5 || 0.5 || 0.5 || 0.5 || 0.5 || 0.5 ||

XX is the
policy area or budget title concerned.

The human resources required
will be met by staff from the DG who are already assigned to management of the action
and/or have been redeployed within the DG, together if necessary with any
additional allocation which may be granted to the managing DG under the annual
allocation procedure and in the light of budgetary constraints.

Description of
tasks to be carried out:

Officials and temporary agents || Preparation and management of Joint committee meetings foreseen under Article VI of the Agreement and missions ensuring the good functioning and implementation, as well as regular review, of the Agreement.

External personnel ||

3.2.4.     Compatibility with the
current multiannual financial framework

–
þ  Proposal/initiative is compatible the current multiannual
financial framework.

–
 ̈  Proposal/initiative will entail reprogramming of the relevant
heading in the multiannual financial framework.

Explain what reprogramming is required,
specifying the budget lines concerned and the corresponding amounts.

–
 ̈  Proposal/initiative requires application of the flexibility
instrument or revision of the multiannual financial framework[21].

Explain what is required, specifying the
headings and budget lines concerned and the corresponding amounts.

3.2.5.     Third-party contributions

–
þ The proposal/initiative does not provide for co-financing by third
parties

–
The proposal/initiative provides for the
co-financing estimated below:

Appropriations in EUR million (to three decimal
places)

|| Year N || Year N+1 || Year N+2 || Year N+3 || ... enter as many years as necessary to show the duration of the impact (see point 1.6) || Total

Specify the co-financing body || || || || || || || ||

TOTAL appropriations co-financed || || || || || || || ||

3.3.        Estimated impact on
revenue

–
þ  Proposal/initiative has no financial impact on revenue.

–
 ̈  Proposal/initiative has the following financial impact:

 ̈         on own resources

 ̈         on miscellaneous revenue

EUR million (to three decimal places)

Budget revenue line: || Appropriations available for the ongoing budget year || Impact of the proposal/initiative[22]

Year N || Year N+1 || Year N+2 || Year N+3 || ... insert as many columns as necessary in order to reflect the duration of the impact (see point 1.6)

Article ............. || || || || || || || ||

For miscellaneous
assigned revenue, specify the budget expenditure line(s) affected.

Specify the method for
calculating the impact on revenue.

[1]               OJ

[2]               OJ

[3]               OJ L295 of 6 June 2005, p. 38.

[4]               ABM: Activity-Based Management – ABB: Activity-Based
Budgeting.

[5]               As referred to in Article 49(6)(a) or (b) of the
Financial Regulation.

[6]               Details of management modes and references to the
Financial Regulation may be found on the BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html

[7]               As referred to in Article 185 of the Financial
Regulation.

[8]               Diff. = Differentiated appropriations / Non-Diff. =
Non-differentiated appropriations

[9]               EFTA: European Free Trade Association.

[10]             Candidate countries and, where applicable, potential
candidate countries from the Western Balkans.

[11]             Year N is the year in which implementation of the
proposal/initiative starts.

[12]             Technical and/or administrative assistance and
expenditure in support of the implementation of EU programmes and/or actions
(former "BA" lines), indirect research, direct research.

[13]             Year N is the year in which implementation of the
proposal/initiative starts.

[14]             Outputs are products and services to be supplied (e.g.:
number of student exchanges financed, number of km of roads built, etc.).

[15]             As described in Section 1.4.2. 'Specific objective(s)...'

[16]             Year N is the year in which implementation of the
proposal/initiative starts.

[17]             Technical and/or administrative assistance and
expenditure in support of the implementation of EU programmes and/or actions
(former 'BA' lines), indirect research, direct research.

[18]             CA= Contract Agent; INT= agency staff ('Intérimaire');
JED= 'Jeune Expert en Délégation' (Young Experts in Delegations); LA=
Local Agent; SNE= Seconded National Expert;

[19]             Under the ceiling for external personnel from
operational appropriations (former 'BA' lines).

[20]             Essentially for Structural Funds, European Agricultural
Fund for Rural Development (EAFRD) and European Fisheries Fund (EFF).

[21]             See points 19 and 24 of the Interinstitutional
Agreement.

[22]             As regards traditional own resources (customs duties,
sugar levies), the amounts indicated must be net amounts, i.e. gross amounts
after deduction of 25% for collection costs.