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I Information

Council

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COMMON POSITION (EC) No 27/2006

adopted by the Council on 25 September 2006

with a view to the adoption of Decision No .../2006/EC of the European Parliament and of the Council of ... concerning the Seventh Framework Programme of the European Community for research, technological development and demonstration activities (2007-2013)

(2006/C 301 E/01)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 166(1) thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Economic and Social Committee (1),

Having regard to the opinion of the Committee of the Regions (2),

Acting in accordance with the procedure laid down in Article 251 of the Treaty (3),

Whereas:

HAVE DECIDED AS FOLLOWS:

Article 1

Adoption of the Seventh Framework Programme

The Framework Programme for Community activities in the area of research and technological development (‘RTD’), including demonstration activities (‘the Seventh Framework Programme’) is hereby adopted for the period from 1 January 2007 to 31 December 2013.

Article 2

Objectives and activities

1.   The Seventh Framework Programme shall support the activities set out in points (i) to (iv). The objectives and the broad lines of those activities are set out in Annex I.

2.   The Seventh Framework Programme shall also support the non-nuclear direct scientific and technical actions carried out by the Joint Research Centre (‘JRC’) as defined in Annex I.

Article 3

Specific programmes

The Seventh Framework Programme shall be implemented through specific programmes. These programmes shall specify precise objectives and the detailed rules for implementation.

Article 4

Maximum overall amount and shares assigned to each programme

1.   The maximum overall amount for Community financial participation in this Seventh Framework Programme shall be EUR 50 521 million (11). That amount shall be distributed among the activities and actions referred to in paragraphs 1 and 2 of Article 2 as follows (in EUR million):

2.   The indicative breakdown among the thematic areas of each activity referred to in paragraph 1 is set out in Annex II.

3.   The detailed rules for Community financial participation in this Framework Programme are set out in Annex III.

Article 5

Protection of the Communities' financial interests

For the Community actions financed under this Decision, Regulation (EC, Euratom) No 2988/95 and Regulation (Euratom, EC) No 2185/96 shall apply to any infringement of a provision of Community law, including infringements of a contractual obligation stipulated on the basis of the programme, resulting from an act or omission by an economic operator, which has, or would have, the effect of prejudicing the general budget of the European Union or budgets managed by it, by an unjustified item of expenditure.

Article 6

Ethical principles

1.   All the research activities carried out under the Seventh Framework Programme shall be carried out in compliance with fundamental ethical principles.

2.   The following fields of research shall not be financed under this Framework Programme:

3.   Research on human stem cells, both adult and embryonic, may be financed, depending both on the contents of the scientific proposal and the legal framework of the Member State(s) involved.

Any application for financing for research on human embryonic stem cells shall include, as appropriate, details of licensing and control measures that will be taken by the competent authorities of the Member States as well as details of the ethical approval(s) that will be provided.

As regards the derivation of human embryonic stem cells, institutions, organisations and researchers shall be subject to strict licensing and control in accordance with the legal framework of the Member State(s) involved.

4.   The fields of research set out in paragraph 2 shall be reviewed for the second phase of this programme (2010-2013) in the light of scientific advances.

Article 7

Monitoring, evaluation and review

1.   The Commission shall continually and systematically monitor the implementation of the Seventh Framework Programme and its specific programmes and regularly report and disseminate the results of this monitoring.

2.   No later than 2010, the Commission shall carry out, with the assistance of external experts, an evidence-based interim evaluation of this Framework Programme and its specific programmes building upon the ex-post evaluation of the Sixth Framework Programme. This evaluation shall cover the quality of the research activities under way, as well as the quality of implementation and management, and progress towards the objectives set.

The Commission shall communicate the conclusions thereof, accompanied by its observations and, where appropriate, proposals for the adaptation of this Framework Programme, to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions.

The interim evaluation shall be preceded by a progress report as soon as enough data becomes available, giving initial findings on the effectiveness of the new actions initiated under the Seventh Framework Programme and of the efforts made with regard to simplification.

3.   Two years following the completion of this Framework Programme, the Commission shall carry out an external evaluation by independent experts of its rationale, implementation and achievements.

The Commission shall communicate the conclusions thereof, accompanied by its observations, to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions.

Done at Brussels, ...

For the European Parliament

The President

...

For the Council

The President

...

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(1)OJ C 65, 17.3.2006, p. 9.

(2)OJ C 115, 16.5.2006, p. 20.

(3)  Opinion of the European Parliament of 15 June 2006 (not yet published in the Official Journal), Council Common Position of 25 September 2006 (not yet published in the Official Journal) and Position of the European Parliament of ... (not yet published in the Official Journal).

(4)OJ C 320 E, 15.12.2005, p. 259.

(5)OJ C 139, 14.6.2006, p. 1.

(6)OJ L 312, 23.12.1995, p. 1.

(7)OJ L 292, 15.11.1996, p. 2.

(8)OJ L 136, 31.5.1999, p. 1.

(9)OL L 248, 16.9.2002, p. 1.

(10)  Throughout the Seventh Framework Programme, ‘SMEs’ are understood to include microenterprises.

(11)  Note: all figures are in current prices reflecting the Interinstitutional Agreement (IIA) on the Financial Framework (2007-2013). Accordingly, IIA figure for FP7 for 2007-2013 of EUR 48 081 million in 2004 prices corresponds to EUR 54 582 million for 2007-2013 in current prices, of which EUR 50 521 million for FP7 (EC) for 2007-2013, EUR 2 751 million for FP7 (Euratom) for 2007-2011 and indicatively EUR 1 310 million for Euratom programme for 2012-2013.

(12)  Research relating to cancer treatment of the gonads can be financed.

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ANNEX I

SCIENTIFIC AND TECHNOLOGICAL OBJECTIVES, BROAD LINES OF THE THEMES AND ACTIVITIES

The Seventh Framework Programme will be carried out to pursue the general objectives described in Article 163 of the Treaty, to strengthen industrial competitiveness and to meet the research needs of other Community policies, thereby contributing to the creation of a knowledge-based society, building on a European Research Area and complementing activities at a national and regional level. It will promote excellence in scientific and technological research, development and demonstration through the following four programmes: cooperation, ideas, people and capacities.

I.   Cooperation

In this part of the Seventh Framework Programme, support will be provided to transnational cooperation in different forms across the Union and beyond, in a number of thematic areas corresponding to major fields of knowledge and technology, where the highest quality research must be supported and strengthened to address European social, economic, environmental and industrial challenges. The bulk of this effort will be directed towards improving industrial competitiveness, with a research agenda that reflects the needs of users throughout Europe.

The overarching aim is to contribute to sustainable development.

The ten themes determined for Community action are the following:

These themes are broadly defined at relatively high level, such that they can adapt to evolving needs and opportunities that may arise during the lifetime of the Seventh Framework Programme. For each of them, a series of activities has been identified which indicates the broad lines envisaged for Community support. These activities have been identified on the basis of their contribution to Community objectives, including the transition to a knowledge-based society, the relevant European research potential and the added value of Community level intervention for these subjects.

Special attention will be paid to ensuring there is effective coordination between the thematic areas and to priority scientific areas which cut across themes, such as forestry research, cultural heritage, marine sciences and technologies.

Multidisciplinarity will be encouraged by joint cross-thematic approaches to research and technology subjects relevant to more than one theme, with joint calls being an important inter-thematic form of cooperation.

In the case of subjects of industrial relevance in particular, the topics have been identified relying, among other sources, on the work of different ‘European Technology Platforms’ set up in fields where Europe's competitiveness, economic growth and welfare depend on important research and technological progress in the medium to long term. European Technology Platforms bring together stakeholders, under industrial leadership, to define and implement a Strategic Research Agenda. This Framework Programme will contribute to the realisation of these Strategic Research Agendas where these present true European added value. European Technology Platforms can play a role in facilitating and organising the participation of industry, including SMEs, in research projects relating to their specific field, including projects eligible for funding under the Framework Programme.

The ten themes also include research needed to underpin the formulation, implementation and assessment of Community policies, in areas such as health, safety, consumer protection, energy, the environment, development aid, fisheries, maritime affairs, agriculture, animal welfare, transport, education and training, employment, social affairs, cohesion, and the creation of an Area of Freedom, Security and Justice, along with pre-normative and co-normative research relevant to improving interoperability and the quality of standards and their implementation.

Under each theme, beside these activities, two types of opportunities will be addressed in an open and flexible way:

The dissemination and transfer of knowledge is a key added value of European research actions, and measures will be taken to increase the use of results by industry, policy makers and society. Dissemination will be considered an integral task under all thematic areas, with appropriate restrictions for the security theme due to the confidentiality aspects of the activities, including through the funding of networking initiatives, seminars and events, assistance by external experts and information and electronic services in particular CORDIS.

Complementarity and synergy between this programme and other Community programmes will be ensured. Actions to support innovation will be taken under the Competitiveness and Innovation Framework Programme.

Particular attention should be paid to ensuring the adequate participation of SMEs (1), in particular knowledge-intensive SME in transnational cooperation. Concrete measures, including support actions to facilitate SME participation, will be taken throughout the ‘Cooperation’ part of the programme in the framework of a strategy to be developed under each theme. These strategies will be accompanied by quantitative and qualitative monitoring against the objectives set. The aim will be to enable at least 15 % of the funding available under the ‘Cooperation’ part of the programme to go to SMEs.

Support will also be provided to initiatives aimed at engaging the broadest possible public beyond the research community in the debate on scientific issues and research results, and to initiatives in the field of scientific communication and education, including the involvement, where appropriate, of civil society organisations or networks of such organisations. The integration of the gender dimension and gender equality will be addressed in all areas of research.

Raising the competitiveness of European research requires that the potential across the whole European Research Area is fully unlocked. Projects, aiming at providing scientific excellence, should be managed optimally with particular regard to the use of resources.

Across all these themes, support for trans-national cooperation will be implemented through:

Collaborative Research

Collaborative research will constitute the bulk and the core of Community research funding. The objective is to establish, in the major fields of advancement of knowledge, excellent research projects and networks able to attract researchers and investments from Europe and the entire world.

This will be achieved by supporting collaborative research through a range of funding schemes: collaborative projects, networks of excellence, coordination/support actions (see Annex III).

Joint Technology Initiatives

In a very limited number of cases, the scope of an RTD objective and the scale of the resources involved could justify setting up long term public private partnerships in the form of Joint Technology Initiatives. These initiatives, mainly resulting from the work of European Technology Platforms and covering one or a small number of selected aspects of research in their field, will combine private sector investment and national and European public funding, including grant funding from the Seventh Framework Programme and loan and guarantee finance from the European Investment Bank. Each Joint Technology Initiative will be decided upon individually, either on the basis of Article 171 of the Treaty (this may include the creation of a joint undertaking) or on the basis of Specific Programme Decisions in accordance with Article 166(3) of the Treaty.

Potential Joint Technology Initiatives will be identified in an open and transparent way on the basis of an evaluation using a series of criteria:

The nature of the Joint Technology Initiatives must be clearly defined, in particular with regard to matters concerning:

Considering the particular scope and complexity of the Joint Technology Initiatives, strong efforts will be made to ensure their transparent operation and to ensure that any allocation of Community funding by the Joint Technology Initiatives takes place on the basis of the Framework Programme principles of excellence and competition.

Particular attention will be paid to the overall coherence and coordination between Joint Technology Initiatives and programmes and projects in the same fields (2), while respecting their existing implementation procedures, as well as to ensuring that participation in their projects is open to a wide range of participants throughout Europe, in particular SMEs.

Coordination of Non-Community Research Programmes

The action undertaken in this field will make use of two main tools: the ERA-NET scheme and the participation of the Community in jointly implemented national research programmes (under Article 169 of the Treaty). The action may cover subjects not directly linked to the ten themes in so far as they have sufficient European added value. The action will also be used to enhance the complementarity and synergy between the Seventh Framework Programme and activities carried out in the framework of intergovernmental structures such as EUREKA and COST (3).

The ERA-NET scheme will develop and strengthen the coordination of national and regional research activities by:

The participation of the Community in research programmes jointly implemented on the basis of Article 169 of the Treaty is especially relevant to European cooperation on a large scale in ‘variable geometry’ between Member States sharing common needs and/or interests. In well-identified cases such Article 169 initiatives could be launched in areas to be identified in close association with the Member States, including the possible cooperation with intergovernmental programmes, on the basis of a series of criteria:

International Cooperation

International cooperation actions, showing European added value and being of mutual interest, under this part of the Seventh Framework Programme will be:

This part of the Framework Programme covers the international cooperation actions in each thematic area and across themes. Such actions will be implemented in coordination with those under the ‘People’ and the ‘Capacities’ programmes. An overall strategy for international cooperation within the Seventh Framework Programme will underpin this activity.

THEMES

1.   Health

Objective

Improving the health of European citizens and increasing the competitiveness and boosting the innovative capacity of European health-related industries and businesses, while addressing global health issues including emerging epidemics. Emphasis will be put on translational research (translation of basic discoveries into clinical applications including scientific validation of experimental results), the development and validation of new therapies, methods for health promotion and prevention, including promotion of healthy ageing, diagnostic tools and medical technologies, as well as sustainable and efficient healthcare systems.

Rationale

The sequencing of the human genome and the recent advances in post-genomics have revolutionised research into human health and diseases. Integrating the vast amounts of data, understanding underlying biological processes and developing key technologies for health-related bio-industries requires the bringing together of critical masses of various expertise and resources that are not available at a national level, with a view to developing knowledge and capacity for intervention.

Significant advances in translational health research, which is essential to ensure that biomedical research provides practical benefits and improves life quality, also require multidisciplinary and pan-European approaches involving different stakeholders. Such approaches allow Europe to contribute more effectively to international efforts to combat diseases of global importance.

Clinical research on many diseases (e.g. cancer, cardiovascular and infectious diseases, mental and neurological diseases, in particular those linked with ageing, such as Alzheimer and Parkinson diseases) relies on international multi-centre trials to achieve the required number of patients in a short time-frame.

Epidemiological research requires a large diversity of populations and international networks to reach significant conclusions. Developing new diagnostics and treatments for rare disorders, as well as performing epidemiological research on those disorders, also requires multi-country approaches to increase the number of patients for each study. In addition, performing health policy-driven research at the European level enables comparisons to be made of the models, systems, data, and patient material held in national databases and biobanks.

Strong EU-based biomedical research will help strengthen the competitiveness of the European healthcare biotechnology, medical technology and pharmaceutical industries. EU collaboration with developing countries will allow those countries to develop research capacities. The EU must also play an active role in creating an environment conducive to innovation in public and pharmaceutical sectors which address public health needs, in particular to maximise the success of clinical research. Research-based SMEs are the main economic drivers of the healthcare biotechnology and medical technology industries. Although Europe now has more biotechnology companies than the US, most of them are small and less mature than their competitors. Public-private research efforts at the EU level will facilitate their development. EU research will also contribute to the development of new norms and standards to set up an appropriate legislative framework for new medical technologies (e.g. regenerative medicine). The global leadership of European research and innovation in the field of alternative testing strategies, in particular non-animal methods, should be ensured.

The activities that will be addressed, which include research essential to policy requirements, are set out below. The strategic issues of child health and health of the ageing population will receive specific attention across the activities. Long-term research agendas such as those established by European Technology Platforms, such as the one on innovative medicines, will be supported where relevant. To respond to new policy needs, additional actions may be supported in, for example, the areas of health policy issues and occupational health and safety.

Ethical, legal and socio-economic issues will be taken into account within each of the following activities.

Activities

2.   Food, Agriculture and Biotechnology

Objective

Building a European knowledge-based bio-economy (4) by bringing together science, industry and other stakeholders, to exploit new and emerging research opportunities that address social, environmental and economic challenges: the growing demand for safer, healthier, higher quality food and for sustainable use and production of renewable bio-resources; the increasing risk of epizootic and zoonotic diseases and food related disorders; threats to the sustainability and security of agricultural, aquaculture and fisheries production; and the increasing demand for high quality food, taking into account animal welfare and rural and coastal contexts and response to specific dietary needs of consumers.

Rationale

Innovations and advancement of knowledge in the sustainable management, production and use of biological resources (micro-organisms, plants, animals), will provide the basis for new, sustainable, safe, eco-efficient and competitive products for agriculture, fisheries, feed, food, health, forest-based and related industries. In line with the European strategy on life sciences and biotechnology (5), this will help increase the competitiveness of European agriculture and biotechnology, seed and food companies, in particular high-tech SMEs, while improving social welfare and well-being.

Research into the safety of food and feed chains, diet-related diseases, food choices and the impact of food and nutrition on health will help to fight food-related disorders (e.g. obesity, allergies) and infectious diseases (e.g. transmissible spongiform encephalopathies, avian flu), while making an important contribution to the implementation of existing and the formulation of future policies and regulations in the areas of public, animal and plant health and consumer protection.

The diversity and mainly small size of the European industries in these areas, while being one of the Union's strengths and an opportunity, leads to fragmented approaches to similar problems. These are better addressed by increased collaboration and sharing of expertise, for example on new methodologies, technologies, processes and standards that result from changing Community legislation.

Several European Technology Platforms contribute to setting common research priorities, in fields such as plant genomics and biotechnology, forestry and forest based industries, global animal health, farm animal breeding, food and industrial biotechnology. The research carried out will provide the knowledge base needed to support the Common Agricultural Policy and European Forest Strategy; agriculture and trade issues; safety aspects of genetically modified organisms (‘GMOs’); food safety regulations; Community animal health, disease control and welfare standards; and the Common Fisheries Policy reform aiming to provide sustainable development of fishing and aquaculture and the safety of seafood products (6): With a view to ensuring social relevance, a flexible response to new policy needs is also foreseen, in particular with respect to new risks and social or economic trends and needs.

Activities

3.   Information and Communication Technologies (ICT)

Objective

Improving the competitiveness of European industry and enabling Europe to master and shape future developments in ICT so that the demands of its society and economy are met. ICT is at the very core of the knowledge-based society. Activities will strengthen Europe's scientific and technology base and ensure its global leadership in ICT, help drive and stimulate product, service and process innovation and creativity through ICT use and ensure that ICT progress is rapidly transformed into benefits for Europe's citizens, businesses, industry and governments. These activities will also help reduce the digital divide and social exclusion.

Rationale

ICT is critical to Europe's future and underpins the realisation of the Lisbon agenda. It has a catalytic impact in three key areas: productivity and innovation, modernisation of public services and advances in science and technology. Half of the productivity gains in our economies are explained by the impact of ICT on products, services and business processes. ICT is the leading factor in boosting innovation and creativity and in mastering change in value chains across industry and service sectors.

ICT is essential to meeting the rise in demand for health and social care, in particular for people with special needs, including the ageing population, to modernising services in domains of public interest such as education, cultural heritage, security, energy, transport and the environment and to promoting accessibility and transparency of governance and policy development processes. ICT plays an important role in RTD management and communication and is catalytic in the advance of other fields of science and technology as it transforms the way researchers conduct their research, cooperate and innovate.

The escalating economic and societal demands, together with the continued mainstreaming of ICT and the need to push further the limits of technology as well as to develop innovative high-value ICT-based products and services set a growing agenda for research. To bring technology closer to people and organisational needs means: hiding technology complexity and revealing functionality on demand; making technology functional, very simple to use, available and affordable; providing new ICT-based applications, solutions and services that are trusted, reliable, and adaptable to the users' context and preferences. Driven by the demand of more-for-less, ICT researchers are involved in a global race focussing on miniaturisation, mastering the convergence of computing, communications and media technologies, including further interoperability between systems and the convergence with other relevant sciences and disciplines, and building systems that are able to learn and evolve.

From these diverse efforts a new wave of technologies is emerging. ICT research activities will also draw on a broader range of scientific and technological disciplines including bio- and life sciences, psychology, pedagogy, cognitive and social sciences and the humanities.

ICT is one the most research intensive sectors. The ICT research effort, public and private, represents a third of the total research effort in all major economies. Although Europe already enjoys industrial and technological leadership in key ICT fields it lags behind its major competitors in investment in ICT research. Only through a renewed and more intensive pooling of the effort at European level will we be able to make the most of the opportunities that progress in ICT can offer. ICT research activity based on the ‘open source’ development model is proving its utility as a source of innovation and increasing collaboration. The results of ICT research can take various exploitation paths and lead to various business models.

The ICT research activities will be closely articulated with policy actions for ICT deployment and with regulatory measures within a comprehensive and holistic strategy. Priorities have been set following extensive consultations that included input from a series of European Technology Platforms and industrial initiatives in areas such as nano-electronics, microsystems, embedded systems, mobile and wireless communications, electronic media, photonics, robotics and software, services and grids, including Free, Libre and Open Source Software (FLOSS). Sustainability issues will also be taken into account, particularly in the field of electronics.

Activities

The role of research into Future and Emerging Technologies is particularly relevant under this theme in order to support research at the frontier of knowledge in core ICTs and in their combination with other relevant areas and disciplines; to nurture novel ideas and radically new uses and to explore new options in ICT research roadmaps, including the exploitation of quantum effects, system integration and smart systems.

4.   Nano-sciences, Nano-technologies, Materials and new Production Technologies

Objective

Improving the competitiveness of European industry and generate knowledge to ensure its transformation from a resource-intensive to a knowledge-intensive industry, by generating step changes in knowledge and implementing decisive knowledge for new applications at the crossroads between different technologies and disciplines. This will benefit both new, high-tech industries and higher-value, knowledge-based traditional industries, with a special focus on the appropriate dissemination of RTD results to SMEs. These activities are primarily concerned with enabling technologies which impact all industrial sectors and many other Seventh Framework Programme themes.

Rationale

The increasing difficulties affecting many industrial activities appear no longer to be limited to traditional sectors with a high labour intensity, but are beginning to be observed in intermediate sectors — which constitute the established strengths of European industry — and even in some high-technology sectors. A strong industrial base must be maintained by strengthening the knowledge content in the existing industry as well as building, in Europe, a strong knowledge-based, knowledge intensive industry, stressing the exploitation of basic research for industrial applications. This will include the modernisation of the existing SME base and the creation and subsequent growth of new knowledge-driven SMEs, from the dissemination of knowledge and expertise through collaborative programmes.

The competitiveness of industry in the future will largely depend on nano-technologies and their applications. RTD in nano-sciences and nano-technologies taken up in several areas can accelerate European industry's transformation. The EU has recognised leadership in fields such as nano-sciences, nano-technologies, materials and production technologies, which must be strengthened in order to secure and increase the EU position in a highly competitive global context.

Materials with new properties are key to the future competitiveness of European industry and the basis for technical progress in many areas.

Industry-relevant priorities and their integration for sectoral applications can be established through activities like the European Technology Platforms in fields such as nano-electronics, manufacturing, power generation, steel, chemistry, energy, the transport industry, construction, industrial safety, textiles, ceramics, forest-based industry and nano-medicine. This will help establish common research priorities and targets. In addition by responding flexibly to new policy needs that arise during the lifetime of the Seventh Framework Programme, the relevant policy, regulatory and standardisation, and impact issues will be addressed.

Activities

5.   Energy

Objective

Adapting the current energy system into a more sustainable one, less dependent on imported fuels and based on a diverse mix of energy sources, in particular renewables, energy carriers and non-polluting sources; enhancing energy efficiency, including by rationalising use and storage of energy; addressing the pressing challenges of security of supply and climate change, whilst increasing the competitiveness of Europe's industries.

Rationale

Energy systems are confronted with major challenges. There is an urgent need to identify and develop adequate and timely solutions given the alarming trends in global energy demand, the finite nature of conventional oil and natural gas reserves, the need to curb dramatically emissions of greenhouse gases in order to mitigate the devastating consequences of climate change, the damaging volatility of oil prices (in particular for the transport sector which is heavily oil dependent) and geopolitical instability in supplier regions. Energy research is an important contribution towards ensuring affordable energy costs for our citizens and industries. Research and demonstration are necessary in order to provide the most environmentally sound and cost-effective technologies and measures enabling the EU to meet its targets under the Kyoto Protocol and beyond and to implement its energy policy commitments, as described in the 2000 Green Paper on the security of energy supply (7), the 2005 Green Paper on Energy Efficiency (8) and the 2006 Green Paper on a European strategy for sustainable competitive and secure energy (9).

Europe has developed world leadership in a number of energy generation and energy efficiency technologies. It is the pioneer in modern renewable energy technologies, such as solar energy, bio- and wind energy. The EU is also a global competitor in power generation and distribution technologies and has a strong research capability in the area of carbon capture and sequestration. These positions, however, are now facing severe competition (in particular from the US and Japan). Therefore Europe must maintain and develop its leading position which requires substantial efforts and international collaboration.

Radically transforming the energy system into a less- or non-CO2-emitting, reliable, competitive and sustainable energy system requires new technologies with risks that are too high and profits too uncertain for private firms to provide all the investment needed for research, development, demonstration and deployment. Public support should therefore play a key role in mobilising private investment and European efforts and resources should be combined in a coherent and more effective manner, to compete with economies that are investing heavily and consistently in similar technologies. European technology platforms play an important role in this regard, by mobilising the necessary research effort in a coordinated manner. The activities to meet the objective are set out below. A specific activity on knowledge for energy policy making is included which may also provide support to new policy needs that emerge relating, for example, to the role of European energy policy in the development of international climate change actions, and instabilities or disruptions in energy supply and price.

Activities

6.   Environment (including climate change)

Objective

Sustainable management of the environment and its resources through the advancement of knowledge on the interaction between the climate, biosphere, ecosystems and human activities, and the development of new technologies, tools and services, in order to address global environmental issues in an integrated way. Emphasis will be placed on prediction of climate, ecological, earth and ocean systems changes, on tools and technologies for monitoring, prevention, mitigation and adaptation of environmental pressures and risks, including risks to health, and on tools and technologies for the sustainability of the natural and man-made environment.

Rationale

Environmental problems extend beyond national frontiers and require a coordinated approach at a pan-European and, often, global level. Earth's natural resources and the man-made environment are under intense pressure from a growing population, urbanisation, construction, continuous expansion of the agriculture, aquaculture, fisheries, transport, and energy sectors, and climate variability and warming at local, regional and global scales. Europe needs to engage in a new sustainable relationship with the environment while improving competitiveness and strengthening European industry. EU-wide cooperation is needed in order to attain critical mass, given the scale, scope and high level of complexity of environmental research. This will facilitate common planning, the use of connected and inter-operable databases, and the development of coherent and large scale observation and forecasting systems. Research should address the need for data management and information services and problems related to data transfer, integration, mapping.

Research is needed at EU level for the implementation of international commitments such as the UN Framework Convention on Climate Change (UNFCC) and its Kyoto protocol, the UN Convention on Biological Diversity, the UN Convention to Combat Desertification, the Stockholm Convention on Persistent Organic Pollutants, the objectives of the World Summit on Sustainable Development 2002, including the EU Water Initiative, and contributions to the Intergovernmental Panel on Climate Change and the Earth Observation initiative.

In addition, there are significant research needs arising from existing and emerging EU level policies, the implementation of the 6th Environmental Action Plan and associated thematic strategies (e.g. the EU marine strategy), the action plans, programmes and directives on Environmental Technologies and Environment and Health, the Water Framework and Natura 2000.

The EU needs to strengthen its position in world markets for environmental technologies. Such technologies contribute to sustainable consumption and production, helping to deliver sustainable growth providing eco-efficient solutions to environmental problems at different scales and protecting our cultural and natural heritage. Environmental requirements act as a stimulus for innovation and can provide business opportunities and higher competitiveness while at the same time ensuring a more sustainable future for next generations. European Technology Platforms on water supply and sanitation and on sustainable chemistry confirm the need for EU level action and their research agendas are taken into consideration in the activities below. Other platforms (e.g. on construction and on forestry) partially deal with environmental technology issues and are taken into consideration as well. Socio-economic issues have a particularly strong influence on the development of environmental technologies and their introduction to the market and subsequent application, as, for example, is the case with water resources management. Activities must consider the socio-economic aspects of policies and technological developments, whenever relevant to the topic.

A series of activities are listed below (10) many of which are directly relevant to policy needs. However, additional support may be provided to new policy needs that emerge, for example, in relation to sustainability impact assessments of EU policies; the follow up to the post-Kyoto action on climate change; and new environmental policies such as those in the European Soil Strategy and relating to maritime policy, standards and regulations.

Activities

7.   Transport (including aeronautics)

Objective

Based on technological and operational advances and on the European transport policy, developing integrated, safer, ‘greener’ and ‘smarter’ pan-European transport systems for the benefit of all citizens, society and climate policy, respecting the environment and natural resources; and securing and further developing the competitiveness attained by the European industries in the global market.

Rationale

Transport is one of Europe's strengths — the air transport sector contributes to 2,6 % of the EU GDP (with 3,1 million jobs) and the surface transport field generates 11 % of the EU GDP (employing some 16 million persons). However, transport is responsible for 25 % of all the EU emissions of CO2, hence the absolute need for a ‘greening’ of the system to ensure more sustainable transport patterns and compatibility with growth rates, as developed in the White Paper on ‘European Transport Policy for 2010: time to decide’ (12).

The enlargement (increasing land surface by 25 % and population by 20 %) and economic development of the EU present new challenges for transporting people and goods efficiently, cost-effectively and in a sustainable manner. Transport also has direct relevance for other major policies such as trade, competition, employment, environment, cohesion, energy, security and the internal market.

Investment in RTD in EU transport industries is a prerequisite for ensuring a technological competitive advantage in global markets (13). Activities at European level will also stimulate the restructuring of the industry, including the integration of the supply chain and, in particular, SMEs.

The research agendas developed by European Technology Platforms (14) support the need to take a new ‘transport systems’ perspective that considers the interactions of vehicles or vessels, transport networks or infrastructures and the use of transport services, which can only be developed at European level. RTD costs in all these fields are rising substantially, and collaborative activity at EU-level is essential to enable a ‘critical mass’ of diverse RTD providers to address the scale and multi-disciplinary challenges in a cost-effective way, as well as meeting the political, technological and socio-economic challenges of issues such as the ‘clean and safe vehicle’ of the future, interoperability and intermodality with particular reference to waterborne and rail transport, affordability, safety, capacity, security and environmental impacts in an enlarged Union. Also, developing technologies in support of the Galileo system and its applications will be essential in implementing European policies.

As well as the strong industry relevance of the themes and activities set out below, the needs of policy makers will be addressed in an integrated way covering economic, social and environmental aspects of transport policy. In addition, support will be provided to respond to existing as well as new policy needs, for example relating to developments in maritime policy or implementation of the European Single Sky.

Activities

8.   Socio-Economic Sciences and the Humanities

Objective

Generating an in-depth, shared understanding of the complex and interrelated socio-economic challenges Europe is confronted with, such as growth, employment and competitiveness, social cohesion, social, cultural and educational challenges in an enlarged EU and sustainability, demographic change, migration and integration, quality of life and global interdependence, in particular with the view to providing an improved knowledge base for policies in the fields concerned.

Rationale

Europe has a strong and high quality research base in socio-economic and socio-cultural sciences and the humanities fields. The diversity of approaches within the EU in the economic, social, political and cultural domains provides a highly fertile ground for research in these fields at EU level. There is much European added value in collaborative research addressing European socio-economic and socio-cultural issues in the areas mentioned. First, the issues and challenges concerned are of high priority at the European level and are addressed by Community policies. Second, comparative research across the EU or other countries offers a particularly effective tool as well as important learning opportunities across countries and regions.

Third, EU-level research has particular advantages in being able to develop Europe-wide data collection and to employ the multiple perspectives needed to understand complex issues. Finally, the development of a genuinely European socio-economic knowledge base on these key challenges will make an essential contribution to promoting their shared understanding across the European Union and, most significantly, by European citizens.

The activities to be supported are listed below and are expected to contribute significantly to improving the formulation, implementation, impacts and assessments of policy and the definition of regulatory measures in a wide range of areas such as the economic, social, cultural, education and training, gender equality, enterprise, international trade, consumer, external relations, and scientific and technological spheres, official statistics policies and the creation of the area of freedom, security and justice. In addition, opportunities will be provided to address emerging socio-economic challenges as well as to undertake research on new or unforeseen policy needs. Use may also be made of social platforms to discuss future research agendas.

Activities

9.   Space

Objective

Supporting a European Space Programme focusing on applications such as GMES (Global Monitoring for Environment and Security) with benefits for citizens and for the competitiveness of the European space industry. This will contribute to the development of a European space policy, complementing efforts by Member States and by other key players, including the European Space Agency (ESA).

Rationale

The Community can contribute in this field to the better definition of common objectives based on user requirements and policy objectives; to the coordination of activities in order to avoid duplications and maximise interoperability; to improving cost-effectiveness and to the definition of standards. Public authorities and decision-makers represent important potential users and the European industry will also benefit from a well defined European Space policy implemented through a European Space Programme, supported in part by the proposed research and technological development actions. European level actions are also needed to support Community policy objectives, for example in the fields of agriculture, forestry, fisheries, environment, health, telecommunications, security, transport as well as ensuring that Europe is a respected partner in regional and international cooperation.

In the last 40 years, excellent technological competence has been built up in Europe, both nationally and through ESA. Sustaining a competitive industry (including manufacturers, service providers and operators) requires new research and technologies. Space applications bring important benefits to citizens by virtue of technological spin-off effects and are indispensable in a high-tech society.

The activities set out below aim at: the efficient exploitation of space assets (in coordination with in-situ assets, including airborne assets) for the implementation of applications, namely GMES and their contribution to law enforcement in Community policies; space exploration, allowing international cooperation opportunities and dramatic technological breakthroughs as well as cost-effective missions; exploitation and exploration of space supported through enabling activities guaranteeing the strategic role of the European Union. These activities will be complemented by other actions under the Competitiveness and Innovation Framework Programme and in the Education and Training Programme. The public policy benefits of the below activities will also be maximised, including by the provision of additional support for new policy needs that may arise, for example: space-based solutions in support of developing countries and use of space-observation tools and methods to support developments in Community policies.

Activities

10.   Security

Objective

To develop the technologies and knowledge for building capabilities needed to ensure the security of citizens from threats such as terrorism, natural disasters, and crime, while respecting fundamental human rights including privacy; to ensure optimal and concerted use of available technologies to the benefit of civil European security, to stimulate the cooperation of providers and users for civil security solutions, improving the competitiveness of the European security industry and delivering mission-oriented research results to reduce security gaps.

Rationale

Security in Europe is a precondition of prosperity and freedom. The EU Security Strategy: ‘A Secure Europe in a Better World’, adopted by the European Council, addresses the need for a comprehensive security strategy encompassing both civil and defence-related security measures.

Security related research is an important building block for realising a high level of security within the area of freedom, security and justice. It will also contribute to developing technologies and capabilities in support of other Community policies in areas such as transport, civil protection, energy, environment and health. Security research needs specific implementation rules to take into account its special nature.

Existing security related research activities in Europe suffer from the fragmentation of efforts, the lack of critical mass of scale and scope and the lack of connections and interoperability. Europe needs to improve the coherence of its efforts by developing efficient institutional arrangements and by instigating cooperation and coordination among the various national and international actors in order to avoid duplication and to explore synergies wherever possible. Security research at Community level will maintain an exclusively civil orientation and focus on activities of clear added value to the national level. As a consequence, civil security research within the Seventh Framework Programme will reinforce the competitiveness of the European security industry. Recognising that there are areas of ‘dual-use’ technology, close coordination with the activities of European Defence Agency will be needed in order to ensure complementarity.

Security research will emphasise European capabilities regarding surveillance, distribution of information and knowledge of threats and incidents as well as systems for better assessments and situation control through better use of common ICT-systems in the fields of different operations.

The non defence activities set out below will complement and integrate the technology- and systems-oriented research relevant to civil security which is carried out in other themes. They will be mission-oriented, developing the technologies and capabilities as required by the specific security missions. They are by design flexible so as to accommodate as yet unknown future security threats and related policy needs that may arise, stimulating cross-fertilisation and the take-up of existing technologies for the civil security sector, European security research will also encourage the development of multi-purpose technologies in order to maximise the scope for their application.

Activities

The above four areas will be supported by the following themes of a more cross-cutting nature:

II.   Ideas

Objective

This programme will enhance the dynamism, creativity and excellence of European research at the frontier of knowledge. This will be done by supporting ‘investigator-driven’ research projects carried out across all fields by individual teams in competition at the European level. Projects will be funded on the basis of proposals presented by researchers both from the private and public sectors on subjects of their choice and evaluated on the sole criterion of excellence as judged by peer review. Communication and dissemination of research results is an important aspect of this programme.

Rationale

Investigator-driven ‘frontier’ research, within the framework of activities commonly understood as ‘basic research’, is a key driver of wealth and social progress, as it opens new opportunities for scientific and technological advance, and is instrumental in producing new knowledge leading to future applications and markets.

Despite many achievements and a high level of performance in a large number of fields, Europe is not making the most of its research potential and resources, and urgently needs a greater capacity to generate knowledge and translate such knowledge into economic and social value and growth.

A Europe-wide competitive funding structure (in addition to and not replacing national funding) for frontier research executed by individual teams, which may be of national or transnational character, is a key component of the European Research Area, complementing other Community and national activities. It will help reinforce the dynamism and attractiveness of Europe for the best researchers from both European and third countries, and for industrial investment.

Activities

This action will respond to the most promising and productive areas of research and the best opportunities for scientific and technological progress, within and across disciplines, including engineering and social sciences and the humanities. It will be implemented independently of the thematic orientations of the other parts of the Seventh Framework Programme, and will pay attention to new generation researchers and new groups as well as established teams.

The Community activities in frontier research will be implemented by a European Research Council (ERC), consisting of an independent scientific council, supported by a lean and cost-effective dedicated implementation structure. The management of the ERC will be carried out by staff recruited for that purpose, including officials from EU institutions, and will cover only the real administrative needs in order to assure the stability and continuity necessary for an effective administration.

The Scientific Council will consist of representatives of the European scientific community, ensuring a diversity of the research fields, at the highest level, acting in their personal capacity, independently of political or other interests. Its members will be appointed by the Commission following an independent procedure for their identification. They will be appointed for a period of four years, renewable once, on a basis of a rotating system which will ensure the continuity of the Scientific Council's work.

The Scientific Council will, inter alia, establish an overall scientific strategy, have full authority over decisions on the type of research to be funded and act as guarantor of the quality of the activity from the scientific perspective. Its tasks will cover, in particular, the development of the annual work programme, the establishment of the peer review process, as well as the monitoring and quality control of the programme's implementation from the scientific perspective. It will establish a code of conduct addressing, inter alia, the avoidance of conflicts of interest.

The dedicated implementation structure will be responsible for all aspects of implementation and programme execution as provided for in the annual work programme. It will, in particular, implement the peer review and selection process according to the principles established by the Scientific Council and will ensure the financial and scientific management of the grants.

The administrative and staffing costs for the ERC relating to the Scientific Council and dedicated implementation structure will be consistent with lean and cost-effective management; administrative expenditure will be kept to a minimum, consistent with ensuring the resources necessary for high quality implementation.

The Commission will act as the guarantor of the ERC's full autonomy and integrity. It will ensure that the ERC acts in accordance with the principles of scientific excellence, autonomy, efficiency and transparency, and that it follows precisely the strategy and implementation methodology established by the Scientific Council. The Commission will draw up, in cooperation with the scientific council, an annual report on the ERC's operations and realisation of the objectives and submit it to the European Parliament and the Council.

The ERC will have the faculty to conduct its own strategic studies to prepare for and support its operational activities. In particular, it may consult with European, intergovernmental and national initiatives so as to programme its activities in the light of other research at European and national level.

The implementation and management of the activity will be reviewed and evaluated on an on-going basis to assess its achievements and to adjust and improve procedures on the basis of experience. In the context of the interim evaluation referred to in Article 7(2), an independent review will also be carried out of the ERC's structures and mechanisms, against the criteria of scientific excellence, autonomy, efficiency and transparency and with the full involvement of the Scientific Council. The review will explicitly look at the advantages and disadvantages of a structure based on an Executive Agency, and a structure based on Article 171 of the Treaty. On the basis of this review, these structures and mechanisms should be modified as appropriate. The Commission will ensure that all the necessary preparatory work is undertaken and presented to the European Parliament and the Council, with a view to a transition to any modified structure required, as soon as possible. The progress report referred to in Article 7(2), preceding the interim evaluation, will give initial findings on the functioning of the ERC.

III.   People

Objective

Strengthening, quantitatively and qualitatively, the human potential in research and technology in Europe, by stimulating people to enter into the profession of researcher, encouraging European researchers to stay in Europe, and attracting to Europe researchers from the entire world, making Europe more attractive to the best researchers. Building on the experiences with the ‘Marie Curie’ actions under previous Framework Programmes, this will be done by putting into place a coherent set of ‘Marie Curie’ actions, particularly taking into account the European added value in terms of their impact on the European Research Area. These actions will address researchers at all stages of their careers, from initial research training specifically intended for young people to life-long learning and career development in the public and private sectors. Efforts will also be made to increase participation by women researchers, by encouraging equal opportunities in all ‘Marie Curie Actions’, by designing the actions to ensure that researchers can achieve an appropriate work/life balance and by facilitating the resumption of a research career after a break.

Rationale

Abundant and highly trained qualified researchers are a necessary condition to advance science and to underpin innovation, but also an important factor to attract and sustain investments in research by public and private entities. Against the background of growing competition at world level, the development of an open European labour market for researchers free from all forms of discrimination and the diversification of skills and career paths of researchers are crucial to support a beneficial circulation of researchers and their knowledge, both within Europe and in a global setting. Special measures to encourage early-stage researchers and support early stages of scientific career, as well as measures to reduce the ‘brain drain’, such as reintegration grants, will be introduced.

Mobility, both trans-national and intersectoral, including the stimulation of industrial participation and the opening of research careers and academic positions at European scale, is a key component of the European Research Area and indispensable to increasing European capacities and performance in research. International competition between researchers will remain central in order to ensure the highest quality of research under this activity. Increasing the mobility of researchers and strengthening the resources of those institutions which attract researchers internationally will encourage centres of excellence around the European Union. To ensure training and mobility within new research and technology areas, appropriate coordination with other parts of the Seventh Framework Programme will be ensured and synergies will be sought with other Community policies, e.g. on education, cohesion and employment. Actions on linking science education to careers, and research and coordination actions on new methods in science education are foreseen under the Science in Society part of the ‘Capacities’ programme.

Activities

Initially the co-financing mode will be implemented on a controlled scale allowing for the necessary experience to be gained.

IV.   Capacities

This part of the Seventh Framework Programme will enhance research and innovation capacities throughout Europe and ensure their optimal use. This aim will be achieved through:

RESEARCH INFRASTRUCTURES

Objective

Optimising the use and development of the best research infrastructures existing in Europe, and helping to create in all fields of science and technology new research infrastructures of pan-European interest needed by the European scientific community to remain at the forefront of the advancement of research, and able to help industry to strengthen its base of knowledge and its technological know-how.

Rationale

Research infrastructures play an increasing role in the advancement of knowledge and technology and their exploitation. The importance of such infrastructures is already well established in areas such as energy, space and particle physics and is increasing in other areas. For example, radiation sources, data banks in genomics and data banks in social science, observatories for environmental and space sciences, systems of imaging or clean rooms for the study and development of new materials or nano-electronics, are at the core of research. They are expensive, need a broad range of expertise to be developed, and should be used and exploited by a large community of scientist and customer industries on a European scale.

The development of a European approach with regard to research infrastructures, including computing and communication based e-infrastructures and virtual infrastructures, and the carrying out of activities in this area at Union level, can make a significant contribution to boosting the potential of European research and its exploitation and contributing to the development of the European Research Area.

While the Member States' role will remain central in the development and financing of infrastructures, the Community can and should play a catalysing and leveraging role by helping to ensure wider and more efficient access to, and use of, the infrastructures existing in the different Member States, by stimulating the development of these infrastructures, and their networking, in a coordinated way, and by fostering the emergence of new research infrastructures of pan-European interest in the medium to long term. In this respect, the European Strategy Forum on Research Infrastructures (ESFRI) plays a key role in identifying needs and a roadmap for European research infrastructures.

Activities

Activities carried out under this heading will be executed across the whole field of science and technology. They will be implemented in close cooperation with the activities taking place in the thematic areas to ensure that all the actions undertaken at European level in the Community framework respond to the needs for research infrastructures in the areas concerned, including international cooperation.

The activities will be the following:

Infrastructures projects proposed for funding in this respect will be identified on the basis of a series of criteria including in particular:

As far as the construction of new infrastructures is concerned, the potential for scientific excellence of the convergence regions as well as the outermost regions should be taken into account, whenever appropriate. An efficient coordination of the Community financial instruments, in particular the Seventh Framework Programme and the structural funds, will be ensured.

RESEARCH FOR THE BENEFIT OF SMEs

Objectives

Strengthening the innovation capacity of European SMEs and their contribution to the development of new technology based products and markets by helping them outsource research, increase their research efforts, extend their networks, better exploit research results and acquire technological know how, bridging the gap between research and innovation.

Rationale

SMEs are at the core of European industry. They should be a key component of the innovation system and in the chain of transformation of knowledge into new products, processes and services. Faced with increasing competition in the internal market and globally, European SMEs need to increase their knowledge and research intensity, enhance the exploitation of research, expand their business activities into larger markets and internationalize their knowledge networks. Most Member State actions relevant to SMEs do not encourage and support trans-national research cooperation and technology transfer. Actions at EU level are necessary to complement and enhance the impact of actions undertaken at national and regional level. In addition to the actions listed below, the participation of SMEs will be encouraged and facilitated, and their needs taken into account, across the Seventh Framework Programme.

Activities

Specific actions in support of SMEs are conceived to support SMEs or SME associations that need to outsource research: mainly low to medium-tech SMEs with little or no research capability. Research intensive SMEs may participate as providers of research services or outsource research to complement their core research capability. Actions will be carried out in the entire field of science and technology with a bottom-up approach. Actions will include support of demonstration and other activities to facilitate the exploitation of research results, ensuring complementarity with the Competitiveness and Innovation Framework Programme. Financial means will be allocated through two schemes:

The clear focus will be on support for research projects. In addition, support will be granted to national schemes providing financial means to SMEs or SME associations to prepare proposals for actions under ‘Research for the benefit of SMEs’. During the implementation of the Community RTD Framework Programme, complementarity and synergy will be ensured with the actions of the Competitiveness and Innovation Framework Programme.

The Competitiveness and Innovation Framework Programme will encourage and facilitate the participation of SMEs in the Seventh Framework Programme through its horizontal services in support of business and innovation. Complementarity and synergy with other Community programmes will be ensured.

REGIONS OF KNOWLEDGE

Objectives

Strengthening the research potential of European regions, in particular by encouraging and supporting the development, across Europe, of regional ‘research-driven clusters’ associating universities, research centres, enterprises and regional authorities.

Rationale

Regions are increasingly recognised as important players in the EU's research and development landscape. Research policy and activities at regional level often rely on the development of ‘clusters’ associating public and private actors. The pilot action on ‘Regions of Knowledge’ demonstrated the dynamic of this evolution and the need to support and encourage the development of such structures.

The actions undertaken in this area will enable European regions to strengthen their capacity for investing in RTD and carry out research activities, while maximising their potential for a successful involvement of their operators in European research projects and facilitating the emergence of clusters, thereby promoting regional development in Europe. Actions will facilitate the creation of regional clusters which contribute to the development of the European Research Area.

Activities

The new ‘Regions of Knowledge’ initiative will involve and bring together regional actors involved in research, such as universities, research centres, industry, public authorities (regional councils or regional development agencies). Projects will cover joint analysis of research agendas of regional clusters (in coordination with other activities on the broader issue of regional innovation clusters) and the elaboration of a set of instruments to address them in specific research activities, including through the ‘mentoring’ of regions with less developed research profiles by highly developed regions and support for emerging Regions of Knowledge.

This will comprise measures aiming at improving research networking and access to sources of research funding as well as better integration and linking of research actors and institutions in regional economies. These activities will be implemented in close relationship with Community regional policy (structural funds), the Competitiveness and Innovation Framework Programme and the education and training programmes.

In the context of the specific activity of ‘Regions of Knowledge’ synergies will be sought with Community regional policy as well as with relevant national and regional programmes, in particular with regard to convergence and outermost regions.

RESEARCH POTENTIAL

Objective

Stimulating the realisation of the full research potential of the enlarged Union by unlocking and developing existing or emerging excellence in the EU's convergence regions and outermost regions (16), and helping to strengthen the capacities of their researchers to successfully participate in research activities at Community level.

Rationale

Europe does not fully exploit its research potential, in particular in less advanced regions remote from the European core of research and industrial development. In order to help researchers and institutions, whether in the public or private sector, of these regions to contribute to the overall European research effort, while taking advantage of the knowledge and experience existing in other regions of Europe, this action aims at establishing the conditions that will allow them to exploit their potential and help to fully realise the European Research Area in the enlarged Union. The actions will build on past and existing measures such as the European Centres of Excellence under the Fifth Framework Programme in what were then acceding and candidate countries and Marie Curie Host Fellowships for the Transfer of Knowledge.

Activities

The action in this domain will comprise support for:

Strong synergies will be sought with Community regional policy. Actions supported under this heading will identify needs and opportunities for reinforcing the research capacities of emerging and existing centres of excellence in convergence regions which may be met by structural and cohesion funds.

Synergies will also be sought with the Competitiveness and Innovation Framework Programme in order to promote the regional commercialisation of RTD in collaboration with industry.

SCIENCE IN SOCIETY

Objective

To stimulate, with a view to building an open, effective and democratic European knowledge-based society, the harmonious integration of scientific and technological endeavour, and associated research policies in the European social web, by encouraging pan-European reflection and debate on science and technology and their relationship with the whole spectrum of society and culture.

Rationale

The influence of science and technology on our daily lives is becoming increasingly profound. Products of social activity and shaped by social and cultural factors, science and technology nevertheless remain a remote domain far from the daily concerns of a large part of the public and of policy decision makers, and continue to be the subject of misunderstandings. Contentious issues relating to emerging technologies should be addressed by society on the basis of well informed debate leading to sound choices and decisions.

Activities

The substantial and integrated initiative undertaken in this field will comprise support for:

These activities will take the form of, in particular, research projects, studies, networking and exchanges, public events and initiatives, prizes, surveys and data collection. In many cases they will imply international partnerships with organisations from third countries.

SUPPORT FOR THE COHERENT DEVELOPMENT OF RESEARCH POLICIES

Objectives

Enhancing the effectiveness and coherence of national and Community research policies and their articulation with other policies, improving the impact of public research and its links with industry, and strengthening public support and its leverage effect on investment by private actors.

Rationale

Increasing investment in research and development up to the 3 % objective and improving its effectiveness is a top priority of the Lisbon strategy for growth and employment. Thus, the development of effective policies to leverage public and private research investments is a major concern of public authorities in light of the need to accelerate the transition towards a competitive knowledge-based economy. This calls for adaptability of research policies, the mobilisation of a broader range of instruments, coordination of efforts across national boundaries and the mobilisation of other policies to create better framework conditions for research.

Activities

The activities undertaken under this heading will complement the coordination activities under the ‘Cooperation’ programme and will aim at improving the coherence and impact of regional, national and Community policies and initiatives (e.g. funding programmes, legislation, recommendations and guidelines). The activities will be the following:

ACTIVITIES OF INTERNATIONAL COOPERATION

To become competitive and play a leading role at world level, the European Community needs a strong and coherent international science and technology policy. The international actions carried out under the different programmes within the seventh Framework Programme will be implemented in the context of an overall international cooperation strategy.

This international policy has three interdependent objectives:

Cooperation with third countries in the Seventh Framework Programme will be targeted, in particular, at the following groups of countries:

The theme-oriented international cooperation actions will be carried out under the ‘Cooperation’ programme. The international actions in the area of human potential will be carried under the ‘People’ programme.

Horizontal support actions and measures with a focus other than a specific thematic or interdisciplinary area covered in ‘Cooperation’ programme will be implemented under the ‘Capacities’ programme, and could be supplemented, in a limited number of cases, by specific cooperation actions of mutual interest. Efforts will be undertaken to improve the coherence of national activities by supporting the coordination of national programmes on international scientific cooperation. Taking into account the experience gained through INTAS and building on its work in the framework of cooperation with the Eastern European and Central Asian countries, activities providing continuity will be undertaken through this programme and the ‘Cooperation’ and ‘People’ programmes.

The overall coordination of the international cooperation actions under the different programmes of the Seventh Framework Programme, as well as with other Community instruments, will be ensured.

NON-NUCLEAR ACTIONS OF THE JOINT RESEARCH CENTRE (JRC)

Objective

To provide customer driven scientific and technical support to the Community policy making process, ensuring support to the implementation and monitoring of existing policies and responding to new policy demands.

Rationale

The JRC's independence of special interests, whether private or national, combined with its technical expertise enable it to facilitate communication and consensus building between stakeholders (industry associations, environmental action groups, Member States' competent authorities, other research centres etc.) and policy makers, especially at the Community level. Through scientific and technological support the JRC helps to make the Community policy process more effective, transparent and based on sound science. Where and when appropriate, research conducted by the JRC should be coordinated with the research undertaken under the ‘Themes’ of the ‘Cooperation’ Specific Programme, in order to avoid overlap and duplication.

The usefulness and credibility of the JRC's support to Community policies is closely linked to the quality of its scientific expertise and its integration in the international scientific community. The JRC will therefore continue investing in research and networking with other centres of excellence in relevant fields. It will participate in indirect actions in all areas with emphasis on common scientific reference systems, networking, training and mobility, research infrastructure and participation in technology platforms and coordination instruments where it has the relevant expertise to produce added value.

The JRC will actively pursue the promotion of the integration of new Member States and candidate countries in its activities to the level currently enjoyed by the EU-15.

Activities

The JRC's priorities will be in fields which are strategically important for the Union and where its input provides high added value. Scientific and technical support to Community policies will continue to be delivered in core areas such as sustainable development, climate change, food, energy, transport, chemicals, alternative methods to animal testing, research policy, information technologies, reference methods and materials, biotechnology, risks, hazards and socio-economic impacts. Growth will be in areas of key concern for the Community:

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(1)  Throughout the Seventh Framework Programme, ‘SMEs’ are understood to include microenterprises.

(2)  In particular with the activities carried out by the intergovernmental structure EUREKA. In addition, the experience gained by EUREKA clusters could be relevant to Joint Technology Initiatives in related areas.

(3)  This will include financial support for the administration and coordination activities of COST.

(4)  The term ‘bio-economy’ includes all industries and economic sectors that produce, manage and otherwise exploit biological resources and related services, supply or consumer industries, such as agriculture, food, fisheries, forestry, etc.

(5)  ‘Life sciences and biotechnology — A strategy for Europe’ — COM(2002) 27.

(6)  Complementary research relating to the sustainable management and conservation of natural resources is addressed under the ‘Environment (including climate change)’ theme.

(7)  COM(2000) 769.

(8)  COM(2005) 265.

(9)  COM(2006) 105.

(10)  Complementary research relating to the production and use of biological resources is addressed under the ‘Food, Agriculture and Biotechnology’ theme.

(11)  The research agendas of relevant European Technology Platforms will be taken into account in the different activities.

(12)  COM(2001) 370.

(13)  The European aeronautics industry invests 14 % of its turnover in research, the European car industry almost 5 % of its turnover; and the EU shipbuilding industry competitive advantage relies exclusively on RTD.

(14)  ACARE: Advisory Council for Aeronautics Research in Europe. Launched in 2001, it is the first operational example of a Technology Platform; ERRAC: European Rail Research Advisory Council; ERTRAC: European Road Transport Research Advisory Council; WATERBORNE Technology Platform.

(15)  ESFRI was launched in April 2002. ESFRI brings together representatives from the 25 EU Member States, appointed by Ministers in charge of Research, and a representative of the European Commission. The countries associated with Framework Programmes for Research were invited to join in 2004.

(16)  Convergence regions are those set out in Article 5 of the Council Regulation (EC) No 1083/2006 of 11 July 2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing Regulation (EC) No 1260/1999 (OJ L 210, 31.07.2006, p. 25 to 78). This includes ‘convergence’ objective regions, regions eligible for funding from the Cohesion fund, and outermost regions.

(17)  Other than associated candidate countries.

(18)  Formerly called the New Independent States: Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyz Republic, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine and Uzbekistan.

(19)  Noting that Latin America includes both developing countries and emerging economies.

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ANNEX II

INDICATIVE BREAKDOWN AMONG PROGRAMMES

The indicative breakdown among programmes is as follows (in EUR million):

Special provisions concerning the Risk-Sharing Finance Facility (RSFF)

The indicative budgets for the ‘Cooperation’ and ‘Capacities’ programmes include contributions to the European Investment Bank (EIB) for the constitution of the RSFF referred to in Annex III. The Council decisions adopting the contributing specific programmes will establish, inter alia, the implementing arrangements under which the Commission will decide on the reallocation to other activities of the Framework Programme of the Community contribution to the RSFF and the income it generates that are not used by the EIB.

The Seventh Framework Programme will contribute an amount of up to EUR 1 billion to the RSFF which is to be matched by an equivalent amount from the EIB. It will come from the ‘Cooperation’ programme (up to EUR 800 million by proportional contribution of all thematic priorities, except socio-economic sciences and humanities) and the ‘Capacities’ programme (up to EUR 200 million from the research infrastructure line).

The amount will be made available progressively to the EIB taking account of the level of demand.

In order to ensure a rapid launch with a critical mass of resources, an amount in the order of EUR 500 million will be progressively allocated in the budget for a period up to the interim evaluation of the Seventh Framework Programme, referred to in Article 7(2) of this Decision. The results of the interim evaluation will be taken into account when allocating the amount for the remainder of the period.

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(1)  Including Joint Technology Initiatives (including financial plan, etc.) and the part of the coordination and international cooperation activities to be funded within the themes.

(2)  The aim will be to enable at least 15 % of the funding available under the ‘Cooperation’ part of the programme to go to SMEs.

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ANNEX III

FUNDING SCHEMES

Indirect Actions

The activities supported by the Seventh Framework Programme will be funded through a range of ‘Funding schemes’. These schemes will be used, either alone or in combination, to fund actions implemented throughout the Framework Programme.

The decisions for specific programmes, work programmes and calls for proposals will specify, as and when appropriate:

Where different funding schemes can be used, the work programmes may specify the funding scheme to be used for the topic on which proposals are invited.

The funding schemes are the following:

The Community will implement the funding schemes identified in part (a) above in compliance with the provisions of the regulation to be adopted pursuant to Article 167 of the Treaty, the relevant State aid instruments, in particular the Community framework for State aid to research and development, as well as international rules in this area. In compliance with this international framework, it will be necessary to be able to adjust the scale and form of financial participation on a case-by-case basis, in particular if funding from other public sector sources is available, including other sources of Community financing such as the EIB.

In addition to providing direct financial support to participants in RTD actions, the Community will improve their access to debt finance through the ‘Risk-Sharing Finance Facility’ by providing a contribution to the EIB. The Community contribution must be used by the EIB, which will be a risk sharing partner, to contribute to the provisioning and capital allocation for loan and guarantee financing from its own resources. There will be no further liability for the Community budget. Subject to and in accordance with arrangements to be established by the regulation adopted pursuant Article 167 of the Treaty and the Council decisions adopting the specific programmes, this mechanism will enable the EIB to increase the amount of financing of European RTD actions (such as joint technology initiatives, large projects-including EUREKA projects, and new research infrastructures and projects run by SMEs) to help overcome market deficiencies.

In the case of participants in an indirect action established in a region lagging in development (convergence regions and outermost regions (1)), complementary funding from the structural funds will be mobilised wherever possible and appropriate. In the case of participation of entities from the candidate countries, an additional contribution from the pre-accession financial instruments may be granted under similar conditions. As regards actions in the ‘research infrastructures’ part of the ‘capacities’ programme of the Seventh Framework Programme, the detailed funding arrangements for these will be defined with a view to ensuring that there is effective complementarity between community research funding and other Community and national instruments, notably the structural funds.

Direct actions

The Community will undertake activities implemented by the Joint Research Centre, which are referred to as direct actions.

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(1)  Convergence regions are those set out in Article 5 of Council Regulation (EC) No 1083/2006. This includes ‘convergence’ objective regions, regions eligible for funding from the Cohesion fund, and outermost regions.

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STATEMENT OF THE COUNCIL'S REASONS

I.   INTRODUCTION

II.   BACKGROUND AND AIM OF THE PROPOSAL

III.   ANALYSIS OF THE COMMON POSITION

A.   General observations

The Council's common position reflects to a considerable extent both the proposal of the Commission and the opinion of the European Parliament as regards the structure, scientific and technological content, means of implementation of the Framework Programme as well as the financial amount and its indicative breakdown.

During its examination of the Commission's proposal, the Council sought to incorporate to the largest possible extent the amendments of the European Parliament, to reflect the considerable degree of consensus between the two legislative bodies, while at the same time respecting the general thrust of the Commission's proposal. To this end, the Council has followed certain guiding principles:

B.   Specific comments

1.   Main amendments to the Commission proposal

(a)   Ethical issues

Concerning ethical issues, the Council has agreed to the line suggested by the European Parliament in its first-reading opinion: rules with regard to ethics in the Seventh Framework Programme, and in particular with regard to embryonic stem-cell research, are now clearly set out in the text of Article 6 of the Framework Programme Decision. In addition, the Commission has made it clear that it will maintain the practice adopted during the Sixth Framework Programme and excluding the activities of destroying human embryos, including for the procurement of stem cells, from Community financial support under the RTD framework programme.

(b)   Scientific and technological content

i.   Cooperation

While broadly maintaining the Commission's proposal on the scientific and technological content of the thematic priorities, the Council, in the light of the European Parliament's amendments, clarified and extended the scope of certain of them as follows:

ii.   Ideas

The Council followed the line of the European Parliament to enable the rapid creation of the European Research Council (ERC), consisting of an independent scientific council and a dedicated implementing structure. By building upon the EP's amendments, it has also further extended the text to ensure that the management of the ERC will be carried out by staff recruited for that purpose; that the Scientific Council will represent a diversity of the research fields and that they will be appointed for a period of four years, renewable once, on the basis of a rotating system; that the Scientific Council will also establish an overall scientific strategy, have full authority over decisions on the type of research to be funded, and also establish a code of conduct addressing, inter alia, the avoidance of conflicts of interest; that the administrative and staffing costs of the ERC will be consistent with lean and cost-effective management; that the Commission will ensure that the ERC will act in accordance with the principles of scientific excellence, autonomy, efficiency and transparency, and draw up an annual report on the ERC's operations and realisation of the objectives and submit it to the European Parliament and the Council; and that the ERC will have the faculty to conduct its own strategic studies for preparing and supporting its operational activities.

However, the Council has opted for a more flexible approach than the European Parliament as regards the ERC's structure. A decision on a possible modification of ERC's structure should therefore be taken only after the interim evaluation of the Framework Programme, foreseen for no later than 2010, in the context of which an independent review of the ERC's structures will explicitly look at the advantages and disadvantages of structures such as an Executive Agency or Article 171 of the Treaty, against criteria of scientific excellence, autonomy, efficiency and transparency.

iii.   People

The Council has agreed to the large majority of the European Parliament's amendments. This programme now includes a reference to building on the experience with the ‘Marie Curie’ actions under previous Framework programmes and their impact on the European Research Area; training specifically intended for young people; increased participation of women researchers; open European labour market for researchers free from all forms of discrimination; special measures to encourage early-stage researchers and support early stage of scientific careers, as well as measures to reduce ‘brain drain’; encouragement of centres of excellence around the European Union; synergies with other Community policies; and the broadening of scientific and generic skills, including those relating to technology transfer and entrepreneurship.

iv.   Capacities

While broadly maintaining the Commission's proposal, the Council decided to include coherent development of policies as a separate activity undertaken in this part of the Framework programme rather than keeping it as a horizontal part of other activities in the ‘Capacities’ programme.

In the light of the European Parliament's amendments, the Council further clarified the scope of certain activities, as follows:

v.   Non-nuclear actions of the Joint Research Centre

The Council clarified the rationale to include coordination of actions under this part with the research undertaken under the ‘Themes’ of the ‘Cooperation’ Specific Programme with the aim of avoiding overlap and duplication. Activities have been extended to include scientific/technical support to the development of risk assessment and management procedures as a tool for the European decision-making process; expertise and role in the Global Monitoring for Environment and Security (GMES) research activities and in the development of new applications in this field; and development and validation of alternative strategies, and in particular non-animal methods, in all relevant research areas.

(c)   Overall amount and breakdown of funds

Following the conclusion of the Interinstitutional Agreement between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management (7), the originally proposed budget for the Seventh Framework Programme of 72.726 million euro had to be reduced while preserving appropriate focus and critical mass. The Council has maintained the Commission's amended proposal for the maximum overall amount of EUR 50 521 million, in accordance with the European Parliament's opinion. The Council has however proposed adjustments to the breakdown of this figure, as follows:

2.   Council's position on the European Parliament's amendments

The Council's common position incorporates a large number of the European Parliament's amendments (232 of the 326 amendments suggested), in whole, in substance or in part, sometimes in a modified form or in a different place, and often in the form proposed by the Commission in its modified proposal, as outlined above.

IV.   CONCLUSION

In establishing its common position, the Council has taken full account of the Commission's proposal and the European Parliament's opinion in first reading. A considerable number of amendments, in full or in part, have been incorporated in the common position with the aim of meeting the bulk of the European Parliament's concerns. The Council believes that its common position represents a well balanced text and it looks forward to constructive discussions with the European Parliament with a view to rapid adoption of the Seventh Framework Programme as well as its implementing measures (i.e. Rules of Participation, Specific Programmes).

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(1)  Doc. 8087/05 RECH 80 ATO 45 COMPET 68 CODEC 266 — COM(2005) 119 final.

(2)OJ C 65, 17.03.2006, p. 9.

(3)OJ C 115, 16.05.2006, p. 20.

(4)  Doc. P6_TA-PROV(2006)0265.

(5)  The Council has also reached a political agreement on the text of the Council Decision concerning the Seventh Framework Programme of the European Atomic Energy Community (Euratom) for research and training activities (2007-2011). The final adoption of this Decision will take place simultaneously with the final adoption of the EC Framework Programme Decision. The draft text has been transmitted to the European Parliament for information.

(6)  2005 Green Paper on Energy Efficiency (COM (2005)265), 2006 Green Paper on a European strategy for sustainable competitive and secure energy (COM (2006) 105).

(7)OJ C 139, 14.6.2006, p. 1.

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COMMON POSITION (EC) No 28/2006

adopted by the Council on 23 October 2006

with a view to the adoption of Regulation (EC) No .../2006 of the European Parliament and of the Council of ... establishing a financing instrument for development cooperation

(2006/C 301 E/02)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 179(1) thereof,

Having regard to the proposal from the Commission,

Acting in accordance with the procedure laid down in Article 251 of the Treaty (1),

Whereas:

HAVE ADOPTED THIS REGULATION:

Article 1

Overall purpose and scope

1.   The Community shall finance measures aimed at supporting cooperation with developing countries, territories and regions included in the list of aid recipients of the Development Assistance Committee of the Organization for Economic Cooperation and Development (OECD/DAC), and set out in Annex I (hereinafter referred to as ‘partner countries and regions’). The Commission shall amend Annex I in accordance with regular OECD/DAC reviews of its list of aid recipients and inform the European Parliament and the Council thereof.

2.   The Community shall finance thematic programmes in countries, territories and regions eligible for assistance under a geographic programme of this Regulation, set out in Articles 5 to 10, for assistance under Regulation (EC) No [...] or for geographic cooperation under the European Development Fund (EDF).

3.   For the purposes of this Regulation, a region is defined as a geographical entity comprising more than one developing country.

TITLE I

OBJECTIVES AND GENERAL PRINCIPLES

Article 2

Objectives

1.   The primary and overarching objective of cooperation under this Regulation shall be the eradication of poverty in partner countries and regions in the context of sustainable development, including pursuit of the Millennium Development Goals (MDGs), as well as the promotion of democracy, good governance and respect for human rights and for the rule of law. Consistently with this objective, cooperation with partner countries and regions shall:

2.   Community cooperation under this Regulation shall comply with the commitments and objectives in the field of development cooperation that the Community has approved in the context of the United Nations (UN) and other competent international organisations in the field of development cooperation.

3.   Community development policy, as laid down in Title XX of the Treaty, shall provide the legal framework for cooperation with partner countries and regions. The Joint Statement by the Council and the Representatives of the Governments of the Member States meeting within the Council, the European Parliament and the Commission on European Union Development Policy: ‘The European Consensus’, of 20 December 2005, and any subsequent modifications thereto, shall provide the general framework, orientations and focus to steer the implementation of Community cooperation with partner countries and regions under this Regulation.

4.   Measures referred to in Article 1(1) shall be designed so as to fulfil the criteria for Official Development Assistance (ODA) established by the OECD/DAC.

Programmes referred to in Article 1(2) shall be designed so as to fulfil the criteria for ODA established by the OECD/DAC, unless:

At least 90 % of the expenditure foreseen under thematic programmes shall be designed so as to fulfil the criteria for ODA established by the OECD/DAC, without prejudice to Article 2(4), second subparagraph, first indent.

5.   Community assistance under this Regulation shall not be used to finance the procurement of arms or ammunition, and operations having military or defence implications.

6.   Measures covered by Regulation (EC) No [...] and in particular Article 4 thereof, and eligible for funding thereunder shall not, in principle, be funded under this Regulation, except where there is a need to ensure continuity of cooperation from crisis to stable conditions for development.

Without prejudice to the need to ensure continuity of cooperation from crisis to stable conditions for development, measures covered by, and eligible for funding under, Council Regulation (EC) No 1257/96 of 20 June 1996 concerning humanitarian aid (15), shall not be funded under this Regulation.

Article 3

General principles

1.   The Community is founded on the values of democracy, the rule of law, respect for human rights and fundamental freedoms and seeks to develop and consolidate commitment to these values in partner countries and regions through dialogue and cooperation.

2.   In the implementation of this Regulation, a differentiated approach depending on development contexts and needs shall be pursued so that partner countries or regions are provided with specific, tailor-made cooperation, based on their own needs, strategies, priorities and assets.

Least developed countries and low income countries shall be given priority in terms of overall resource allocation in order to achieve the MDGs. Appropriate attention shall be given to support the pro-poor development of middle income countries, particularly the lower middle income countries many of which face problems similar to those of low income countries.

3.   Mainstreaming of the following cross-cutting issues shall be undertaken in all programmes: the promotion of human rights, gender equality, democracy, good governance, the rights of the child and indigenous peoples' rights, environmental sustainability and combating HIV/AIDS. In addition, particular attention shall be given to strengthening the rule of law, improving access to justice and supporting civil society, as well as promoting dialogue, participation and reconciliation, and institution-building.

4.   The Community shall take account of the objectives laid down in Title XX of the Treaty and in Article 2 of this Regulation, in all policies which are likely to affect partner countries and regions. For measures financed under this Regulation, the Community shall also aim to ensure coherence with other areas of its external action. This shall be ensured in formulating policy, strategic planning and the programming and implementation of measures.

5.   The Community and the Member States shall improve coordination and complementarity of their policies on development cooperation by responding to partner countries' and regions' priorities at country and regional level. Community policy in the sphere of development cooperation shall be complementary to the policies pursued by the Member States.

6.   The Commission and the Member States shall seek regular and frequent exchanges of information, including with other donors, and promote better donor coordination and complementarity by working towards joint multiannual programming, based on partner countries' poverty reduction or equivalent strategies and partner countries' own budget processes, by common implementation mechanisms including shared analysis, by joint donor-wide missions and by the use of co-financing arrangements.

7.   Within their respective spheres of competence, the Community and the Member States shall promote a multilateral approach to global challenges and foster cooperation with multilateral and regional organisations and bodies such as international financial institutions, UN agencies, funds and programmes, and other bilateral donors.

8.   The Community shall promote effective cooperation with partner countries and regions in line with international best practice. It shall promote:

9.   The Commission shall inform and have regular exchanges of views with the European Parliament.

10.   The Commission shall seek regular exchanges of information with civil society.

TITLE II

GEOGRAPHIC AND THEMATIC PROGRAMMES

Article 4

Implementation of Community assistance

Consistently with the overall purpose and scope, objectives and general principles of this Regulation, Community assistance shall be implemented through geographic and thematic programmes set out in Articles 5 to 16 and the programme set out in Article 17.

Article 5

Geographic programmes

1.   A geographic programme shall encompass cooperation in appropriate areas of activity with partner countries and regions determined on a geographical basis.

2.   Consistently with the overall purpose and scope, objectives and general principles of this Regulation, Community assistance to the countries of Latin America, Asia, Central Asia, and the Middle East as set out in Annex I, as well as South Africa, shall include actions within the following areas of cooperation:

Human development:

Social cohesion and employment:

Governance, democracy, human rights and support for institutional reforms:

Trade and regional integration:

Environment and sustainable development of natural resources:

Water and energy:

Infrastructure, communication and transport:

Rural development, territorial planning, agriculture and food security:

Post-crisis situations and fragile States:

Article 6

Latin America

Community assistance to Latin America shall support actions consistent with Article 5 and with the overall purpose and scope, objectives and general principles of this Regulation. Additional attention shall be paid to the following areas of cooperation, reflecting the specific situation in Latin America:

Article 7

Asia

Community assistance to Asia shall support actions consistent with Article 5 and with the overall purpose and scope, objectives and general principles of this Regulation. Additional attention shall be paid to the following areas of cooperation, reflecting the specific situation in Asia:

Article 8

Central Asia

Community assistance to Central Asia shall support actions consistent with Article 5 and with the overall purpose and scope, objectives and general principles of this Regulation. Additional attention shall be paid to the following areas of cooperation, reflecting the specific situation in Central Asia:

Article 9

Middle East

Community assistance to the Middle East shall support actions consistent with Article 5 and with the overall purpose and scope, objectives and general principles of this Regulation. Additional attention shall be paid to the following areas of cooperation, reflecting the specific situation in the Middle East:

Article 10

South Africa

Community assistance to South Africa shall support actions consistent with Article 5 and with the overall purpose and scope, objectives and general principles of this Regulation. Additional attention shall be paid to the following areas of cooperation, reflecting the specific situation in South Africa:

Article 11

Thematic programmes

1.   A thematic programme shall be subsidiary to programmes referred to in Articles 5 to 10 and shall encompass a specific area of activity of interest to a group of partner countries not determined by geography, or cooperation activities addressed to various regions or groups of partner countries, or an international operation that is not geographically specific.

2.   Consistently with the overall purpose and scope, objectives and general principles of this Regulation, the actions undertaken through thematic programmes shall add value to and be additional to, and coherent with, actions funded under geographic programmes. The following principles shall apply to these actions:

Article 12

Investing in people

1.   The objective of Community assistance under the thematic programme ‘Investing in People’ shall be to support actions in areas which directly affect people's living standards and well-being defined below and focusing on the poorest and least developed countries and the most disadvantaged sections of the population.

2.   To achieve the objective referred to in paragraph 1 and consistent with Article 11, the programme shall include the following areas of activity:

Article 13

Environment and sustainable management of natural resources including energy

1.   The objective of the thematic programme on environment and sustainable management of natural resources, including water, and energy, shall be to integrate environmental protection requirements into the Community's development and other external policies as well as to help promote the Community's environmental and energy policies abroad in the common interest of the Community and partner countries and regions.

2.   To achieve the objective referred to in paragraph 1 and consistent with Article 11, the programme shall include the following areas of activity:

Article 14

Non-State actors and local authorities in development

1.   The objective of the thematic programme on non-State actors and local authorities in development shall be to co-finance initiatives proposed and/or carried out by civil society organisations and local authorities originating from the Community and partner countries in the area of development. At least 85 % of the funding foreseen under this thematic programme shall be allocated to non-State actors. The programme shall be implemented in consistency with the objective of this Regulation and to strengthen the capacity of non-State actors and local authorities in the policy making process, so as to:

2.   To achieve the objective referred to in paragraph 1 and consistent with Article 11, the programme shall include the following areas of activity:

3.   Support to local authorities in partner countries shall normally be carried out in the framework of country strategy papers except where the latter do not provide appropriate support, particularly in situations such as difficult partnerships, fragile states and post-conflict.

Support to local authorities and their associations will take account of their contributing capacity in the calculation of Community co-financing.

Article 15

Food security

1.   The objective of the thematic programme on food security shall be to improve food security in favour of the poorest and most vulnerable people and contribute to achieving the MDG on poverty and hunger, through a set of actions which ensure overall coherence, complementarity and continuity of Community interventions, including in the area of the transition from relief to development.

2.   To achieve the objective referred to in paragraph 1 and consistently with Article 11, the programme shall include the following areas of activity:

Article 16

Migration and asylum

1.   The objective of the thematic programme on cooperation with third countries in the areas of migration and asylum shall be to support them in their efforts to ensure better management of migratory flows in all their dimensions. While the subject of the thematic programme shall be primarily migration to the Community, it shall also take account of relevant south/south migratory flows.

2.   To achieve the objective referred to in paragraph 1 and consistent with Article 11, the programme shall include the following areas of activity:

Article 17

ACP Sugar Protocol countries

1.   ACP Sugar Protocol countries listed in Annex III affected by the Community sugar reform shall benefit from a programme of accompanying measures. Community assistance to these countries shall aim at supporting their adjustment process as they are faced with new conditions on the sugar market due to the reform of the common organisation of the market in sugar. Community assistance shall take into account the countries' adaptation strategies and shall pay specific attention to the following areas of cooperation:

2.   Within the amount referred to in Annex IV, the Commission shall fix the maximum amount available to each Sugar Protocol country for financing the actions referred to in paragraph 1 on the basis of the needs of each country, related in particular to the impact of the reform of the sugar sector in the country concerned and to the importance of the sugar sector to the economy. The measurement of the allocation criteria shall be based on data of campaigns preceding 2004.

Further instructions regarding the allocation of the overall amount among beneficiaries shall be defined by the Commission, acting in accordance with the procedure referred to in Article 35(2).

TITLE III

PROGRAMMING AND ALLOCATION OF FUNDS

Article 18

General framework for programming and allocating funds

1.   In the case of geographic programmes, the Commission shall draw up a strategy paper and a multiannual indicative programme for each partner country or region, as provided for in Article 19, and adopt an annual action programme for each partner country or region, as provided for in Article 22.

In the case of thematic programmes, the Commission shall draw up thematic strategy papers as provided for in Article 20, and adopt action programmes as provided for in Article 22.

In exceptional circumstances, Community support may also take the form of special measures not covered in strategy papers or multiannual indicative programmes, as provided for in Article 23.

2.   The Commission shall determine the multiannual indicative allocations within each geographic programme using standard, objective and transparent resource allocation criteria, based on the needs and performance of the partner country or region concerned and bearing in mind the particular difficulties faced by countries or regions in crisis, conflict or disaster prone, alongside the specificity of the different programmes.

The needs criteria include population, income per capita and the extent of poverty, income distribution and the level of social development. The performance criteria include political, economic and social progress, progress in good governance and the effective use of aid, and in particular the way a country uses scarce resources for development, beginning with its own resources.

3.   The Commission may include a specific financial allocation for the purpose of strengthening cooperation between the EU's outermost regions and neighbouring partner countries and regions.

Article 19

Geographic strategy papers and multiannual indicative programmes

1.   The preparation and implementation of strategy papers shall apply principles of aid effectiveness: national ownership, partnership, coordination, harmonisation, alignment to recipient country or regional systems and results orientation as laid down in Article 3(5) to (8).

2.   Strategy papers shall cover no more than the period of validity of this Regulation and aim to provide a coherent framework for cooperation between the Community and the partner country or region concerned, consistent with the overall purpose and scope, objectives, principles and policy prescriptions of, and Annex IV to, this Regulation. Multiannual indicative programmes shall be based on strategy papers.

Strategy papers shall be reviewed at mid-term, or ad hoc if necessary, in accordance where appropriate with the principles and procedures laid down in the Partnership and Cooperation Agreements concluded with the partner countries and regions;

3.   Strategy papers shall, in principle, be based on a dialogue with the partner country or region which involves civil society and regional and local authorities, so as to ensure that the country or region concerned takes sufficient ownership of the process and to encourage support for national development strategies, particularly those for reducing poverty.

4.   Multiannual indicative programmes shall be drawn up on the basis of the strategy papers for each partner country or region. They shall be the subject of an agreement with the country or region where possible.

Multiannual indicative programmes shall set out the priority areas selected for Community financing, the specific objectives, the expected results and the performance indicators.

The programmes shall also set out the indicative financial allocation, both overall and per priority area; this may be given in the form of a range, where appropriate. These allocations shall be consistent with the indicative allocations set out in Annex IV.

The programmes shall be adjusted where necessary, taking into account any mid-term or ad hoc reviews of strategy papers.

A multiannual indicative allocation may be increased or decreased as a result of reviews, particularly in the light of special needs such as those of a post-crisis situation, or where performance has been exceptional or unsatisfactory.

5.   In circumstances such as crises, post conflict situations or threats to democracy, the rule of law, human rights or fundamental freedoms, a special emergency procedure may be used to conduct an ad hoc review of the country's or region's cooperation strategy. Such reviews may propose a country or region strategy to make the transition to long-term cooperation and development.

6.   In accordance with Article 2(6), the strategy shall ensure that measures taken under this Regulation are consistent with, and avoid duplication with, measures eligible for funding under other Community instruments, in particular Regulation (EC) No [...] and Regulation (EC) No 1257/96. Where partner countries or groups of partner countries are directly involved in, or affected by, a crisis or post-crisis situation, multiannual indicative programmes shall place special emphasis on stepping up coordination between relief, rehabilitation and development to help them make the transition from an emergency situation to the development phase; programmes for countries and regions regularly subject to natural disasters shall provide for disaster preparedness and prevention and the management of the consequences of such disasters.

7.   To foster regional cooperation, the Commission may decide when adopting annual action programmes of the type referred to in Article 22, or the special measures referred to in Article 23 for cooperation measures under this Chapter, that projects or programmes of a regional or cross-border nature carried out with countries listed in Annex V are eligible, in accordance with the first subparagraph of Article 2(4). Provisions may be made for this in the strategy papers and multiannual indicative programmes, referred to in this Article, and in Article 20.

8.   The Commission and the Member States shall consult each other, as well as other donors and development actors including representatives of civil society and regional and local authorities, at an early stage of the programming process in order to promote complementarity among their cooperation activities.

Article 20

Strategy papers for thematic programmes

1.   Thematic strategy papers shall cover no more than the period of validity of this Regulation. They shall set out the Community's strategy for the theme concerned, the Community's priorities, the international situation and the activities of the main partners. They shall be consistent with the overall purpose and scope, objectives, principles and policy prescriptions of, and Annex IV to, this Regulation.

Thematic strategy papers shall set out the priority areas selected for financing by the Community, the specific objectives, the expected results and the performance indicators.

The thematic strategy papers shall also give the indicative financial allocation, both overall and per priority area; this may be given in the form of a range, where appropriate.

Strategy papers shall be reviewed at mid-term, or ad hoc if necessary.

2.   The Commission and the Member States shall consult each other, as well as other donors and development actors including representatives of civil society and local authorities, at an early stage of the programming process in order to promote complementarity among their cooperation activities.

3.   Resources and intervention priorities shall be laid down for participation in global initiatives.

Article 21

Adoption of strategy papers and multiannual indicative programmes

Strategy papers and multiannual indicative programmes referred to in Articles 19 and 20, and any reviews thereof referred to in Article 19(2) and Article 20(1), as well as accompanying measures referred to in Article 17, shall be adopted by the Commission in accordance with the procedure referred to in Article 35(2).

TITLE IV

IMPLEMENTATION

Article 22

Adoption of annual action programmes

1.   The Commission shall adopt annual action programmes based on the strategy papers and multiannual indicative programmes referred to in Articles 19 and 20.

Exceptionally, for instance where an action programme has not yet been adopted, the Commission may, on the basis of the strategy papers and multiannual indicative programmes referred to in Articles 19 and 20, adopt measures not provided for in an annual action programme under the same rules and procedures as for action programmes.

2.   Annual action programmes shall specify the objectives pursued, the fields of intervention, the expected results, the management procedures and total amount of financing planned. They shall contain a description of the operations to be financed, an indication of the amounts allocated for each operation and an indicative implementation timetable. Objectives shall be measurable and have time bound benchmarks.

3.   The annual action programmes shall be adopted by the Commission in accordance with the procedure referred to in Article 35(2).

4.   Appropriate environmental screening shall be undertaken at project level including environmental impact assessment (EIA) for environmentally sensitive projects, in particular for major new infrastructure. Where relevant, strategic environmental assessments (SEA) shall be used in the implementation of sectoral programmes. The involvement of interested stakeholders in environmental assessments and public access to the results shall be ensured.

Article 23

Adoption of special measures not provided for in the strategy papers or multiannual indicative programmes

1.   In the event of unforeseen and duly justified needs or circumstances related to natural disasters, civil strife or crises, and which cannot be funded under Regulation (EC) No [...] or Regulation (EC) No 1257/96, the Commission shall adopt special measures not provided for in the strategy papers or multiannual indicative programmes (hereinafter referred to as ‘special measures’).

Special measures may also be used to fund measures to ease the transition from emergency aid to long-term development operations, including those to better prepare people to deal with recurring crises.

2.   Special measures shall specify the objectives pursued, the intervention areas, the expected results, the management procedures and the total amount of financing. They shall contain a description of the operations to be financed, an indication of the amounts allocated for each operation and the indicative timetable for their implementation. They shall include a definition of the type of performance indicators that will have to be monitored when implementing the special measures.

3.   Where the cost of such measures exceeds EUR 10 million, the Commission shall adopt them under the management procedure referred to in Article 35(2). For special measures below EUR 10 million, the Commission shall send the measures to the Member States and the European Parliament for information within one month of adopting its decision.

4.   The procedure referred to in Article 35(2) need not be used for amendments to special measures, such as those making technical adjustments, extending the implementation period, reassigning funds within the forecast budget, or increasing or reducing the size of the budget by less than 20 % of the initial budget, provided these amendments do not affect the initial objectives set out in the Commission decision. Any such technical adjustments shall be communicated within one month to the European Parliament and to the Member States.

Article 24

Eligibility

1.   Without prejudice to Article 31, the following, inter alia, shall be eligible for funding under this Regulation for the purposes of implementing the annual action programmes referred to in Article 22 or the special measures referred to in Article 23:

2.   The non-State, non-profit making actors eligible for financial support under this Regulation operating on an independent and accountable basis include: non governmental organisations, organisations representing indigenous peoples, organisations representing national and/or ethnic minorities, local traders' associations and citizens' groups, cooperatives, trade unions, organisations representing economic and social interests, organisations fighting corruption and fraud and promoting good governance, civil rights organisations and organisations combating discrimination, local organisations (including networks) involved in decentralised regional cooperation and integration, consumer organisations, women's and youth organisations, teaching, cultural, research and scientific organisations, universities, churches and religious associations and communities, the media and any non governmental associations and independent foundations, including independent political foundations, likely to contribute to the implementation of the objectives of this Regulation.

Article 25

Types of financing

1.   Community financing may take the following forms:

2.   Community assistance shall not be used for paying taxes, duties or charges in beneficiary countries.

Article 26

Support measures

1.   Community financing may cover expenditure associated with the preparation, follow up, monitoring, audit and evaluation activities directly necessary for the implementation of this Regulation and the achievement of its objectives, e.g. studies, meetings, information, awareness-raising, training and publication activities, expenditure associated with computer networks for the exchange of information, and any other administrative or technical assistance expenditure necessary for the management of the programme. It shall also cover expenditure at Commission delegations on the administrative support needed to manage operations financed under this Regulation.

2.   These support measures are not necessarily covered by multiannual indicative programmes and may therefore be financed outside the scope of strategy papers and multiannual indicative programmes. However, they may also be financed under multiannual indicative programmes.

The Commission shall adopt support measures not covered by the multiannual indicative programmes in accordance with Article 23(3) and (4).

Article 27

Co-financing

1.   Measures shall be eligible for co-financing from the following, inter alia:

2.   In the case of parallel co-financing, the project or programme is split into a number of clearly identifiable components, which are each financed by the different partners providing co-financing in such a way that the end-use of the financing can always be identified.

In the case of joint co-financing, the total cost of a project or programme is shared between the partners providing the co-financing and the resources are pooled in such a way that it is no longer possible to identify the source of financing for any given activity undertaken as part of the project or programme.

3.   In the case of joint co-financing, the Commission may receive and manage funds on behalf of the bodies referred to in paragraph 1(a), (b) and (c) for the purpose of implementing joint measures. Such funds shall be treated as assigned revenue, in accordance with Article 18 of Regulation (EC, Euratom) No 1605/2002.

Article 28

Management procedures

1.   The measures financed under this Regulation shall be implemented in accordance with Regulation (EC, Euratom) No 1605/2002 and any revision thereof.

2.   In the event of co-financing and in other duly justified cases, the Commission may entrust tasks of public authority, and in particular budget implementation tasks, to the bodies referred to in Article 54(2)(c) of Regulation (EC, Euratom) No 1605/2002.

3.   In the case of decentralised management, the Commission may decide to use the procurement or grant procedures of the beneficiary partner country or region after verifying that they respect the relevant criteria of Regulation (EC, Euratom) No 1605/2002, provided that:

Article 29

Budget commitments

1.   Budget commitments shall be made on the basis of decisions taken by the Commission in accordance with Articles 22(1), 23(1) and 26(1).

2.   Community financing may take one of the following legal forms, inter alia:

Article 30

Protecting the Community's financial interests

1.   Any agreements resulting from this Regulation shall contain provisions ensuring the protection of the Community's financial interests, in particular with respect to irregularities, fraud, corruption and any other illegal activity, in accordance with Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities' financial interests (17), Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities' financial interests against fraud and other irregularities (18) and Regulation (EC) No 1073/1999 of the European Parliament and of the Council of 25 May 1999 concerning investigations conducted by the European Antifraud Office (OLAF) (19).

2.   Agreements shall expressly entitle the Commission and the Court of Auditors to perform audits, including document audits or on the spot audits of any contractor or subcontractor who has received Community funds. They shall also expressly authorise the Commission to carry out on-the-spot checks and inspections as provided for in Regulation (Euratom, EC) No 2185/96.

3.   All contracts resulting from the implementation of assistance shall ensure the rights of the Commission and the Court of Auditors under paragraph 2 during and after the performance of the contracts.

Article 31

Public procurement procedures, grant award procedures, rules of origin

1.   Participation in the award of procurement or grant contracts financed under this Regulation shall be open to all natural persons who are nationals of, or legal persons who are established in, a Member State of the Community, in an official candidate country as recognised by the European Community or in a Member State of the European Economic Area.

Participation in the award of procurement or grant contracts financed under a geographic programme as defined in Articles 5 to 10 shall be open to all natural persons who are nationals of, or legal persons who are established in, any developing country eligible by virtue of Annex I.

Participation in the award of procurement or grant contracts financed under a thematic programme as defined in Articles 11 to 16, and the programme set out in Article 17, shall be open to all natural persons who are nationals of, or legal persons who are established in, a developing country, as specified by the OECD/DAC and in Annex II, in addition to natural or legal persons eligible by virtue of the thematic programme or the programme set out in Article 17. The Commission shall publish and update Annex II in accordance with regular reviews of the list of aid recipients of the OECD/DAC, and inform the Council thereof.

2.   Participation in the award of procurement or grant contracts financed under this Regulation shall also be open to all natural persons who are nationals of or legal persons who are established in any country other than those referred in paragraph 1, where reciprocal access to their external assistance has been established.

Reciprocal access shall be granted whenever a country grants eligibility on equal terms to the Member States and to the recipient country concerned.

Reciprocal access shall be established by means of a specific decision concerning a given country or a given regional group of countries. Such a decision shall be adopted in accordance with the procedure referred to in Article 35(2) and shall be in force for a minimum period of one year.

The granting of reciprocal access shall be based on a comparison between the Community and other donors and shall proceed at sectoral level, as defined by the OECD/DAC categories, or at country level, whether it be a donor or a recipient country. The decision to grant such reciprocity to a donor country shall be based on the transparency, consistency and proportionality of the aid provided by that donor, including its qualitative and quantitative nature. The recipient countries shall be consulted as part of the procedure described in this paragraph.

Reciprocal access in the least developed countries as defined by the OECD/DAC shall be automatically granted to OECD/DAC members.

3.   Participation in the award of procurement or grant contracts financed under a Community instrument shall be open to international organisations.

4.   The above is without prejudice to the participation of categories of eligible organisations by nature or by localisation in regard to the objectives of the action to carry out.

5.   Experts may be of any nationality, without prejudice to the qualitative and financial requirements set out in the Community's procurement rules.

6.   All supplies and materials purchased under a contract financed under this Regulation shall originate from the Community or from an eligible country as defined in paragraph 1 and 2. The term ‘origin’ for the purpose of this Regulation is defined in the relevant Community legislation on rules of origin for customs purposes.

7.   The Commission may, in duly substantiated cases, authorise the participation of natural and legal persons from countries having traditional economic, trade or geographical links with neighbouring countries or other third countries, and the use of supplies and materials of different origin.

8.   The Commission may, in duly substantiated exceptional cases, authorise the participation of natural persons who are nationals of or legal persons who are established in other countries than those referred to in paragraph 1 and 2, or the purchase of supplies and materials of different origins from that set out in paragraph 6.

Derogations may be justified on the basis of the unavailability of products and services in the markets of the countries concerned, for reasons of extreme urgency, or if the eligibility rules would make the realisation of a project, a programme or an action impossible or exceedingly difficult.

9.   Whenever Community funding covers an operation implemented through an international organisation, participation in the appropriate contractual procedures shall be open to all natural or legal persons who are eligible pursuant to paragraph 1 and 2 as well as to all natural or legal persons who are eligible pursuant to the rules of that organisation, care being taken to ensure that equal treatment is afforded to all donors. The same rules shall apply in respect of supplies, materials and experts.

Whenever Community funding covers an operation co-financed with a third country, subject to reciprocity as defined in paragraph 2, or with a regional organisation, or with a Member State, participation in the appropriate contractual procedures shall be open to all natural or legal persons who are eligible pursuant to paragraph 1, 2 and 3 as well as to all natural or legal persons who are eligible under the rules of such third country, regional organisation or Member State. The same rules shall apply in respect of supplies, materials and experts.

10.   For the purposes of aid channelled directly through non-State actors under the thematic programme defined in Article 14, the provisions of paragraph 1 shall not apply to the eligibility criteria established for the selection of grant beneficiaries.

Beneficiaries of these grants shall abide by the rules established in this Article where the implementation of aid requires the award of procurement contracts.

11.   In order to accelerate the eradication of poverty through the promotion of local capacities, markets and purchases, special consideration shall be given to local and regional procurement in partner countries.

Tenderers who have been awarded contracts shall respect internationally agreed core labour standards, e.g. the ILO core labour standards, conventions on freedom of association and collective bargaining, elimination of forced and compulsory labour, elimination of discrimination in respect of employment and occupation, and the abolition of child labour.

Access by developing countries to Community assistance shall be rendered possible by all such technical assistance as is deemed appropriate.

Article 32

Funds made available to the European Investment Bank or other financial intermediaries

1.   The funds referred to in Article 25(1)(e) shall be managed by the EIB, other financial intermediaries or any other bank or organisation with the capacity to manage such funds.

2.   The Commission shall adopt implementing provisions for paragraph 1 on a case-by-case basis to cover risk sharing, the remuneration of the intermediary responsible for implementation, the use and recovery of profits on funds, and the closure of the operation.

Article 33

Evaluation

1.   The Commission shall regularly monitor and review its programmes, and evaluate the results of the implementation of geographical and thematic policies and programmes, and of sectoral policies and the effectiveness of programming, where appropriate by means of independent external evaluations, in order to ascertain whether the objectives have been met and enable it to formulate recommendations with a view to improving future operations. Proposals by the European Parliament or the Council for independent external evaluations will be taken into due account. Particular attention shall be given to social sectors and to progress made towards achieving the MDGs.

2.   The Commission shall send its evaluation reports to the European Parliament and to the Committee referred to in Article 35 for information. Member States may request to discuss specific evaluations in the Committee referred to in Article 35(3). The results shall feed back into programme design and resource allocation.

3.   The Commission shall associate all relevant stakeholders, including non-State actors and local authorities, in the evaluation phase of the Community assistance provided under this Regulation.

TITLE V

FINAL PROVISIONS

Article 34

Annual report

1.   The Commission shall examine the progress made in implementing the measures taken under this Regulation and shall submit to the European Parliament and the Council an annual report on the implementation and the results and, as far as possible, on the main outcomes and impacts of the assistance. This report shall also be submitted to the European Economic and Social Committee and to the Committee of the Regions.

2.   The annual report shall contain information relating to the previous year on the measures financed, the results of monitoring and evaluation exercises, the involvement of the relevant partners, and the implementation of budget commitments and payments, broken down by country, region and cooperation sector. It shall assess the results of the assistance, using as far as possible, specific and measurable indicators of its role in meeting the objectives of this Regulation. Particular attention shall be given to social sectors and to progress made towards achieving the MDGs.

Article 35

Committee

1.   The Commission shall be assisted by a committee.

2.   Where reference is made to this paragraph, Articles 4 and 7 of Decision 1999/468/EC shall apply, having regard to the provisions of Article 8 thereof. The period laid down in Article 4(3) of the Decision shall be set at 30 days.

3.   Where reference is made to this paragraph, Articles 3 and 7 of Decision 1999/468/EC shall apply, having regard to the provisions of Article 8 thereof.

4.   The committee shall adopt its rules of procedure.

5.   An observer from the EIB shall take part in the committee's proceedings, with regard to questions concerning the Bank.

Article 36

Participation by a third country not eligible under this Regulation

Without prejudice to Article 3(5), to ensure the coherence and effectiveness of Community assistance, the Commission may decide when adopting action programmes referred to in Article 22 or the special measures referred to in Article 23 that countries, territories and regions eligible for Community assistance under Regulation (EC) No 1085/2006 or Regulation (EC) No [...] and the EDF are eligible for measures under this Regulation where the geographic or thematic project or programme to be implemented is of a global, regional or cross border nature. Provision may be made for this method of financing in the strategy papers and multiannual indicative programmes referred to in Articles 19 and 20. The provisions of Article 10 concerning eligibility and the provisions of Article 31 concerning participation in public procurement and grant award procedures and rules of origin shall be adapted to allow the countries, territories and regions concerned to take part.

Article 37

Suspension of assistance

Without prejudice to the provisions on suspension of aid in partnership and cooperation agreements with partner countries and regions, where a partner country fails to observe the principles referred to in Article 3(1), and where consultations with the partner country do not lead to a solution acceptable to both parties, or if consultations are refused or in cases of special urgency, the Council, acting by a qualified majority on a proposal from the Commission, may take appropriate measures in respect of any assistance granted to the partner country under this Regulation. Such measures may include full or partial suspension of assistance.

Article 38

Financial provisions

1.   The financial reference amount for the implementation of this Regulation over the period 2007-2013 is EUR 16 897 million.

2.   The indicative amounts allocated to each programme referred to in Articles 5 to 10 and 11 to 16 and 17 are laid down in Annex IV. These amounts are established for the period 2007-2013.

3.   Annual appropriations shall be authorised by the budgetary authority within the limits of the multiannual financial framework.

4.   An indicative amount of EUR 465 million has been included in the total amount for thematic programmes to finance activities that benefit the ENPI countries.

Article 39

Repeals

1.   The following Regulations are hereby repealed:

2.   The repealed Regulations shall continue to apply for legal acts and commitments of pre 2007 budget years. Any reference to the repealed Regulations shall be deemed to be a reference to this Regulation.

Article 40

Review

Not later than 31 December 2010, the Commission shall submit to the European Parliament and the Council a report evaluating the implementation of this Regulation in the first three years with, if appropriate, a legislative proposal introducing the necessary modifications, including the indicative financial allocations set out in Annex IV.

Article 41

Entry into force

This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.

It shall apply from 1 January 2007 to 31 December 2013.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, ...

For the European Parliament

The President

...

For the Council

The President

...

----

(1)  Opinion of the European Parliament of 18 May 2006 (not yet published in the Official Journal), Council Common Position of 23 October 2006 and Position of the European Parliament of ... (not yet published in the Official Journal). Council Decision of ... (not yet published in the Official Journal).

(2)OJ L 210, 31.7.2006, p. 82.

(3)  OJ L ...

(4)  OJ L ...

(5)  OJ L ...

(6)  OJ L ...

(7)  OJ L ...

(8)OJ L 163, 2.7.1996, p. 1.

(9)OJ C 46, 24.2.2006, p. 1.

(10)OJ L 314, 30.11.2001, p. 1.

(11)OJ L 50, 21.2.2006, p. 1.

(12)OJ L 248, 16.9.2002, p. 1.

(13)OJ C 139, 14.6.2006, p. 1.

(14)OJ L 184, 17.7.1999, p. 23. Decision as amended by Decision 2006/512/EC (OJ L 200, 22.7.2006, p. 11).

(15)OJ L 163, 2.7.1996, p. 1. Regulation as amended by Regulation (EC) No 1882/2003 of the European Parliament and of the Council (OJ L 284, 31.10.2003, p. 1).

(16)  Agreement on Trade, Development and Cooperation between the European Community and its Member States, of the one part, and the Republic of South Africa, of the other part (OJ L 311, 4.12.1999, p. 3.)

(17)OJ L 312, 23.12.1995, p. 1.

(18)OJ L 292, 15.11.1996, p. 2.

(19)OJ L 136, 31.5.1999, p. 1.

(20)OJ L 344, 27.12.2005, p. 1.

(21)OJ L 143, 30.4.2004, p. 40.

(22)OJ L 80, 18.3.2004, p. 1.

(23)OJ L 224, 6.9.2003, p. 7. Regulation as amended by Regulation (EC) No 2110/2005.

(24)OJ L 224, 6.9.2003, p. 1. Regulation as amended by Regulation (EC) No 2110/2005.

(25)OJ L 287, 31.10.2001, p. 3. Regulation as last amended by Regulation (EC) No 2110/2005.

(26)OJ L 288, 15.11.2000, p. 6. Regulation as amended by Regulation (EC) No 2110/2005.

(27)OJ L 288, 15.11.2000, p. 1. Regulation as amended by Regulation (EC) No 2110/2005.

(28)OJ L 198, 4.8.2000, p. 1. Regulation as last amended by Regulation (EC) No 2110/2005

(29)OJ L 213, 30.7.1998, p. 6. Regulation as last amended by Regulation (EC) No 625/2004 of the European Parliament and of the Council (OJ L 99, 3.4.2004, p. 1).

(30)OJ L 213, 30.7.1998, p. 1. Regulation as last amended by Regulation (EC) No 2110/2005.

(31)OJ L 166, 5.7.1996, p. 1. Regulation as amended by Regulation (EC) No 1726/2001 of the European Parliament and of the Council (OJ L 234, 1.9.2001, p. 10).

(32)OJ L 52, 27.2.1992, p. 1. Regulation as last amended by Regulation (EC) No 2112/2005 (OJ L 344, 27.12.2005, p. 23).

----

ANNEX I

COUNTRIES ELIGIBLE UNDER ARTICLE 1(1)

Latin America

Asia

Central Asia

Middle East

South Africa

----

ANNEX II

OECD/DAC LIST OF ODA RECIPIENTS

Effective from 2006 for reporting on 2005, 2006 and 2007

----

(1)  Saudi Arabia passed the high income country threshold in 2004. In accordance with the OECD/DAC rules for revision of this list, it will graduate from the list in 2008 if it remains a high income country in 2005 and 2006. Its net ODA receipts from OECD/DAC Members were USD 9,9 million in 2003 and USD 9,0 million (preliminary) in 2004.

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ANNEX III

ACP SUGAR PROTOCOL COUNTRIES

----

ANNEX IV

INDICATIVE FINANCIAL ALLOCATIONS FOR THE PERIOD 2007-2013 (IN EUR MILLION)

----

ANNEX V

NON-DEVELOPING COUNTRIES AND TERRITORIES

----

STATEMENT OF THE COUNCIL'S REASONS

I.   INTRODUCTION

On 29 September 2004, the Commission forwarded a proposal for a Regulation of the European Parliament and of the Council establishing a financing instrument for development cooperation and economic cooperation. The proposal was based on Articles 179(1) and 181a(2) of the EC Treaty.

The European Parliament delivered its Opinion at first reading on 18 May 2006.

The Council adopted its common position in accordance with Article 251 of the EC Treaty on 23 October 2006.

II.   OBJECTIVE

In accordance with Article 179 of the EC Treaty, the objective of the proposed Regulation is to finance measures aimed at supporting cooperation with developing countries, territories and regions set out in the Annex to the Regulation and to finance thematic programmes in countries, regions and territories eligible to assistance under a geographical programme of the Regulation, to assistance under the European Neighbourhood and Partnership Instrument or to geographical cooperation under the European Development Fund.

III.   ANALYSIS OF THE COMMON POSITION

General

The initial Commission proposal covered the general objectives defined in Title XX and Title XXI of the EC Treaty. It therefore provided support for both development policy and all forms of cooperation with developing countries, countries in transition and industrialised countries. It did not impose any restrictions regarding the areas of Community cooperation or intervention.

At first reading, the European Parliament adopted a great many amendments to the initial Commission proposal with a view to reducing its scope to developing countries and basing it on a single Treaty provision (Article 179). The European Parliament also wished to transform the proposed Regulation into a procedural instrument and favoured policy priorities being established by separate co-decided Regulations.

Transforming the proposed Regulation into a procedural instrument requiring several new Commission proposals was not acceptable to Council or Commission which both believed that such approach would be incompatible with the stated aim of simplifying the structure of the Community's external financing instruments. After intensive discussions between the Council, the European Parliament and the Commission, an understanding on the architecture of the proposed Regulation was reached late June 2006 within the framework of an overall agreement on the package of external financing instruments.

Further to this understanding, a proposal for a Regulation on cooperation with industrialised countries was separated from the initial Commission proposal.

The Common Position, reflecting this understanding between all Institutions involved, now provides for a Regulation establishing a financing instrument for development cooperation, based solely on Article 179 of the EC Treaty and is a response to a large number of the concerns voiced in the European Parliament's first-reading amendments.

The following sections describe the changes of substance.

Recitals

The number and content of the recitals have been expanded in order to match the changes introduced in the body of the Regulation.

Legal basis

In accordance with the understanding reached between the Council, the European Parliament and the Commission on the overall architecture of the external financing instruments, the initial Commission proposal for an instrument for development cooperation and economic cooperation was slimmed down and limited to a financing instrument for development cooperation. This change made it possible to delete the reference to Article 181a(1) of the EC Treaty, and to base the Regulation solely on Article 179(1).

Scope, objectives and general principles (Articles 1 to 3)

Article 1 of the Common Position provides that the overall purpose of the Regulation is to finance measures aimed at supporting cooperation with certain developing countries, territories and regions and to finance thematic programmes in countries, regions and territories eligible to assistance under a geographical programme of the Regulation, to assistance under the European Neighbourhood and Partnership Instrument or to geographical cooperation under the European Development Fund.

Article 2 lays down the objectives of geographical and thematic cooperation with partner countries and regions. It also provides that measures aimed at cooperation under geographical programmes shall be designed so as to be fully eligible for Official Development Assistance. Thematic programmes shall be equally designed so as to fulfil the criteria for Official Development Assistance, subject to some duly defined and quantified exceptions.

Article 3 contains general principles applicable to all measures and programmes under the Regulation. These principles are based on Title XX of the EC Treaty, the Development Policy Statement and various internationally accepted principles and commitments, including on aid effectiveness.

Geographical and thematic programmes (Articles 4 to 17)

The Council, very much like the European Parliament in its opinion at first reading, was concerned at the lack of policy content in the initial Commission proposal. Article 3 of the initial Commission proposal merely stated that measures should be financed under geographical or thematic programmes, which would be drawn up by the Commission, that would equally specify their geographical scope. The Council, however, chose to take a different way in order to preserve its legislative powers. Rather than reducing the initial Commission proposal to a procedural instrument, requiring the Commission to make use of its right of initiative to present proposals for additional policy regulations, the Council felt that it would be more appropriate to introduce policy content in the provisions of the Regulation. Therefore, Articles 5 to 10 of the Common Position set the policy for geographical programmes, while Articles 11 to 16 provide for the content of thematic programmes.

Article 5 is a horizontal provision, laying down principles applicable to each geographical programme. Hence, consistently with the overall purpose and scope, objectives and general principles of the Regulation, geographical cooperation with developing countries in Latin America, Asia, Central Asia and the Middle East, and with South Africa, shall include actions within areas such as poverty eradication and achievement of the Millennium Development Goals or areas which are defined in the Development Policy Statement as areas for Community action, including human development; social cohesion and employment; governance, democracy, human rights and support for institutional reforms; trade and regional integration; environment and sustainable development of natural resources; water and energy; infrastructure, communication and transport; rural development, territorial planning, agriculture and food security; as well as post-crisis situations and fragile States.

Articles 6 to 10 lay down areas of cooperation with each of the geographical regions, which shall be consistent with and additional to the actions provided for in Article 5. These specific additional areas of cooperation allow for a tailor-made approach taking fully into account the characteristics of each geographical region. The content of these provisions is largely based on existing Regulations.

A similar approach was followed for thematic programmes. Article 11 sets out the principles applying to all thematic programmes. Specific content is laid down in the following provisions, detailing the content of the various thematic programmes: Investing in people (Article 12), Environment and sustainable management of natural resources including energy (Article 13), Non State actors and local authorities in development (Article 14), Food Security (Article 15), and Migration and Asylum (Article 16).

To a large extent, the content of these thematic provisions is based on, but not limited to, existing thematic Regulations. The content has been adapted to changing needs and realities, takes into account the Development Policy Statement and reflects a series of communications presented by the Commission in January 2006.

Finally, following up on Regulation (EC) No 266/2006, provision was made in Article 17 for Community assistance to ACP Sugar Protocol countries aimed at supporting their adjustment process due to the reform of the common organization of the market in sugar.

Financial provisions (Article 38 and Annex IV)

The Common Position, in its Article 38, provides for a financial reference amount for implementation of the Regulation for the period 2007-2013. The indicative amounts allocated to each programme are laid down in Annex IV, which forms an integral part of the Regulation. The Common Position also earmarks an indicative amount in the total amount for thematic programmes to finance activities that benefit countries under the European Neighbourhood and Partnership Instrument.

The inclusion of this indicative financial breakdown is the Council's response to a shared concern with the European Parliament, i.e. the need for greater involvement of both Institutions in resource allocation.

Review, entry into force and application (Articles 40 and 41)

The Common Position provides for the Regulation to enter into force on the day following that of its publication in the Official Journal. It will apply from 1 January 2007 to 31 December 2013. Moreover, Article 40 puts an obligation upon the Commission to present a report to the European Parliament and the Council evaluating the implementation of the Regulation, including the indicative financial allocations set out in Annex IV, not later than 31 December 2010.

IV.   CONCLUSION

The Council considers that its Common Position, which is the result of extensive preparatory work and negotiations since 2005 and which is supported by the Commission, addresses the concerns expressed by the European Parliament.

As a result of frequent and intensive contacts and exchanges of views between the respective Presidencies of the Council and key players of the European Parliament, a significant convergence of positions between the two Institutions emerged during the process. This convergence has finally led to compromise solutions, reflected in the Common Position, for all outstanding issues.

Thus, the Common Position seeks to establish a workable and efficient financing instrument for Community development cooperation, which represents a good balance between the need to simplify the existing instruments and respect for the powers of both branches of the legislature.

----

----

COMMON POSITION (EC) No 29/2006

adopted by the Council on 14 November 2006

with a view to adopting Regulation (EC) No .../2006 of the European Parliament and of the Council of ... on the submission of statistical data on landings of fishery products in Member States and repealing Council Regulation (EEC) No 1382/91

(Text with EEA relevance)

(2006/C 301 E/03)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 285(1) thereof,

Having regard to the proposal from the Commission,

Acting in accordance with the procedure laid down in Article 251 of the Treaty (1),

Whereas:

HAVE ADOPTED THIS REGULATION:

Article 1

Definitions

For the purposes of this Regulation, the following definitions shall apply:

Article 2

Obligations of the Member States

1.   Each year each Member State shall submit to the Commission statistical data in respect of the fishery products landed on its territory by Community and EFTA fishing vessels (hereinafter referred to as ‘statistical data’).

2.   For the purposes of this Regulation, the following fishery products shall be deemed to be landed on the territory of the reporting Member State:

Article 3

Compilation of statistical data

1.   The statistical data shall cover total landings on national territory within the Community.

2.   Sampling techniques may be employed where, owing to the structural characteristics of a particular sector of the fisheries of a Member State, comprehensive data collection would result in difficulties for the national authorities disproportionate to the importance of that sector.

Article 4

Statistical data

The statistical data shall relate to the total quantities and unit values of the fishery products landed in the reference calendar year.

The variables for which statistical data need to be submitted, their definitions and the relevant nomenclatures are given in Annexes II, III and IV.

Article 5

Submission of statistical data

Member States shall submit the statistical data to the Commission on an annual basis in accordance with the format specified in Annex I and using the codes set out in Annexes II, III and IV.

The statistical data shall be submitted within six months of the end of the reference calendar year.

Article 6

Methodology

1.   By ... (6) each Member State shall submit a detailed methodological report to the Commission describing how the data have been collected and the statistics compiled. That report shall include details of any sampling techniques and an evaluation of the quality of the resulting estimates.

2.   The Commission shall examine the reports and present its conclusions to the relevant working group of the Standing Committee for Agricultural Statistics (hereinafter referred to as ‘the Committee’) established by Article 1 of Council Decision 72/279/EEC (7).

3.   The Member States shall inform the Commission of any change in the information provided for under paragraph 1 within three months of the introduction of such change. They shall also forward to the Commission details of any substantial changes in the collection methods used.

Article 7

Transitional periods

Transitional periods for the implementation of this Regulation lasting not more than three years from the date of its entry into force may be granted to Member States in accordance with the procedure referred to in Article 11(2).

Article 8

Derogations

1.   Where the inclusion in the statistics of a particular sector of the fisheries industry of a Member State would cause difficulties to the national authorities disproportionate to the importance of that sector, a derogation may be granted in accordance with the procedure referred to in Article 11(2), permitting that Member State to exclude statistical data covering that sector from the national statistical data submitted.

2.   Where a Member State requests a derogation under paragraph 1, it shall provide the Commission, in support of its request, with a report on problems encountered in applying this Regulation to total landings on its territory.

Article 9

Updating of the Annexes

The measures relating to technical adaptation of the Annexes shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 11(3).

Article 10

Assessment

The Commission shall, by ... (8) and every three years thereafter, submit an assessment report to the European Parliament and the Council on the statistical data compiled pursuant to this Regulation and in particular on their relevance and quality. The report shall also analyse the cost-effectiveness of the system used for the collection and processing of statistical data and shall put forward best practices for reducing the workload for Member States and enhancing the usefulness and quality of the statistical data.

Article 11

Committee procedure

1.   The Commission shall be assisted by the Committee.

2.   Where reference is made to this paragraph, Articles 4 and 7 of Decision 1999/468/EC shall apply, having regard to the provisions of Article 8 thereof.

The period laid down in Article 4(3) of Decision 1999/468/EC shall be set at three months.

3.   Where reference is made to this paragraph, Article 5a(1) to (4) and Article 7 of Decision 1999/468/EC shall apply, having regard to the provisions of Article 8 thereof.

Article 12

Repeal

Regulation (EEC) No 1382/91 is hereby repealed.

Article 13

Entry into force

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at ...,

For the European Parliament

The President

...

For the Council

The President

...

----

(1)  Opinion of the European Parliament of 15 June 2006 (not yet published in the Official Journal), Council Common Position of 14 November 2006 and Position of the European Parliament of ... (not yet published in the Official Journal).

(2)OJ L 133, 28.5.1991, p. 1. Regulation as last amended by Regulation (EC) No 1882/2003 of the European Parliament and of the Council (OJ L 284, 31.10.2003, p. 1).

(3)OJ L 52, 22.2.1997, p. 1. Regulation as amended by Regulation (EC) No 1882/2003.

(4)OJ L 184, 17.7.1999, p. 23. Decision as amended by Decision 2006/512/EC (OJ L 200, 22.7.2006, p. 11).

(5)OJ L 253, 11.10.1993, p. 1. Regulation as last amended by Regulation (EC) No 402/2006 (OJ L 70, 9.3.2006, p. 35).

(6)  12 months from the date of entry into force of this Regulation.

(7)OJ L 179, 7.8.1972, p. 1.

(8)  Three years from the date of entry into force of this Regulation.

----

ANNEX I

FORMAT OF STATISTICAL DATA SUBMITTED

Statistical data file format

The statistical data are to be submitted in a file in which each record includes the fields indicated below. These fields are to be separated by a comma (‘,’).

Quantities of less than 50 kg landed weight are to be recorded as ‘0,0’.

----

(1)  The full list of international alpha-3 species codes is to be found in the FAO's ASFIS file (http://www.fao.org/fi/statist/fisoft/asfis/asfis.asp)

----

ANNEX II

LIST OF COUNTRY CODES

----

ANNEX III

LIST OF PRESENTATION CODES

Part A

List

Part B

Notes

----

ANNEX IV

LIST OF CODES FOR INTENDED USE OF FISHERY PRODUCTS

Part A

List

Part B

Notes

----

STATEMENT OF THE COUNCIL'S REASONS

I.   INTRODUCTION

II.   OBJECTIVE

The objective of the draft Regulation is to provide for the submission by the Member States of harmonised data on the quantity and the value of landings of fishery products on their territories to permit analyses of the market for fishery products and more general economic analyses of the situation in fisheries.

III.   ANALYSIS OF THE COMMON POSITION

1.   General context

An agreement at fist reading was reached on this dossier in June 2006 (PE-CONS 3628/06).

On 17 July 2006, the Council adopted Decision 2006/512/EC amending Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission and introducing a new procedure named ‘regulatory procedure with scrutiny’ (Article 5a).

The new Committee procedure has to be followed to adopt measures of general scope which seek to amend non-essential elements of a basic instrument adopted in accordance with the procedure referred to in Article 251 of the Treaty, inter alia by deleting some of those elements or by supplementing the instrument by the addition of new non-essential elements.

2.   Adaptations introduced by the Council

The draft Regulation refers to the Committee management procedure for adopting measures relating to technical adaptation of the annexes. However, since those measures are of general scope and are designed to amend non-essential elements of the Regulation, they should be adopted in accordance with the new regulatory procedure with scrutiny provided for in Article 5a of Decision 1999/468/EC.

Due to the urgency of the matter, it will be necessary that the adoption of this Regulation by the Parliament and the Council take place by December 2006.

3.   The Commission has accepted the common position agreed by the Council.

----

(1)  COM(2005) 566 final.

----

----

COMMON POSITION (EC) No 30/2006

adopted by the Council on 14 November 2006

with a view to the adoption of Decision No .../2006/EC of the European Parliament and of the Council of ... concerning the European Year of Intercultural Dialogue (2008)

(2006/C 301 E/04)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular the first indent of Article 151(5) thereof,

Having regard to the proposal from the Commission,

Having regard to the Opinion of the European Economic and Social Committee (1),

Having regard to the Opinion of the Committee of the Regions (2),

Acting in accordance with the procedure laid down in Article 251 of the Treaty (3),

Whereas:

HAVE ADOPTED THIS DECISION:

Article 1

Subject

The year 2008 shall be designated as the ‘European Year of Intercultural Dialogue’ to contribute to giving expression and a high profile to a sustained process of intercultural dialogue which will continue beyond that year.

Article 2

Objectives

1.   The overall objectives of the European Year of Intercultural Dialogue shall be to contribute to:

2.   The specific objectives of the European Year of Intercultural Dialogue shall be to:

Article 3

Content of measures

The measures taken in order to achieve the objectives defined in Article 2 are set out in the Annex.

They shall include the implementation of the following activities or the granting of support thereto:

Article 4

Cooperation by the Member States

Each Member State shall appoint a national coordination body, or an equivalent administrative body, responsible for organising that Member State's participation in the European Year of Intercultural Dialogue. It shall inform the Commission of that appointment within one month of the adoption of this Decision.

Each Member State shall ensure that the aforementioned body involve in an appropriate manner the various parties to intercultural dialogue at national, regional and local level.

The aforementioned body shall ensure the coordination, at national level, of actions relating to the European Year of Intercultural Dialogue.

Article 5

Implementation

1.   The measures necessary for the implementation of this Decision shall be adopted in accordance with the procedure referred to in Article 6(2).

2.   Special attention shall be paid to cooperation with the European institutions, in particular the European Parliament.

Article 6

Committee

1.   The Commission shall be assisted by a Committee.

2.   Where reference is made to this paragraph, Articles 3 and 7 of Decision 1999/468/EC shall apply, having regard to the provisions of Article 8 thereof.

3.   The Committee shall adopt its own rules of procedure.

4.   The national representatives to the Committee shall be appointed preferably by the national coordination body referred to in Article 4.

Article 7

Financial provisions

1.   Measures which are Community-wide, referred to in part A of the Annex, may be subsidised up to 80 % of their total cost from the general budget of the European Union.

2.   The measures referred to in part B of the Annex may be subsidised up to 50 % of their total cost from the general budget of the European Union in accordance with the procedure referred to in Article 8.

3.   Measures which are Community-wide, referred to in part C of the Annex, shall give rise to a procurement contract or the award of grants financed from the general budget of the European Union.

Article 8

Application and selection procedure

1.   Decisions on the awarding of grants shall be taken by the Commission in accordance with the procedure referred to in Article 6(2). The Commission shall ensure a balanced and fair distribution between the Member States and among the different fields of activity involved, while taking into consideration the quality of the projects proposed.

2.   Grant applications presented under Article 7(3) shall be submitted to the Commission by the body referred to in Article 4.

Article 9

International organisations

For the purposes of the European Year of Intercultural Dialogue, the Commission may cooperate with appropriate international organisations, in particular with the Council of Europe and UNESCO, taking great care to ensure the visibility of the EU's participation.

Article 10

Role of the Commission

1.   The Commission shall ensure coherence between the measures laid down in this Decision and other Community actions and initiatives.

2.   The Commission shall endeavour to involve the candidate countries in the European Year of Intercultural Dialogue, on the basis of their participation in a number of Community programmes including an intercultural dialogue dimension and by developing specific initiatives in appropriate frameworks, particularly in the context of civil society dialogue between the EU and candidate countries.

3.   The Commission shall ensure complementarity between the measures taken to achieve the objectives of the European Year of Intercultural Dialogue and initiatives likely to be developed within the relevant cooperation and dialogue frameworks with those EFTA countries which are party to the EEA agreement, the countries of the western Balkans and the partner countries of the European neighbourhood policy.

4.   The Commission shall also ensure complementarity with any other initiative of cooperation with third countries, in particular developing countries, relevant for the objectives of intercultural dialogue of the European Year.

Article 11

Budget

The financial envelope for the implementation of this Decision for the period from 1 January 2007 to 31 December 2008 is EUR 10 000 000. Preparatory action shall be limited to 30 % of the overall budget.

Annual appropriations shall be authorised by the budgetary authority within the limits of the financial framework.

Article 12

Protection of the Community's financial interests

1.   The Commission shall ensure that, when actions financed under this Decision are implemented, the financial interests of the Community are protected by the application of preventive measures against fraud, corruption and any other illegal activities, by effective checks and by the recovery of the amounts unduly paid and, if irregularities are detected, by effective, proportional and dissuasive penalties, in accordance with Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities' financial interests (7), Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities' financial interests against fraud and other irregularities (8) and Regulation (EC) No 1073/1999 of the European Parliament and of the Council of 25 May 1999 concerning investigations conducted by the European Antifraud Office (OLAF) (9).

2.   With regard to the Community actions financed under this Decision, the notion of irregularity referred to in Article 1(2) of Regulation (EC, Euratom) No 2988/95 shall mean any infringement of a provision of Community law or any infringement of a contractual obligation resulting from an act or omission by an economic operator which has, or would have, the effect of prejudicing the general budget of the European Union or budgets managed by the Communities, by an unjustified item of expenditure.

3.   The Commission shall reduce, suspend or recover the amount of financial assistance granted for an action if it finds irregularities, particularly non-compliance with the provisions of this Decision, the individual decision or the contract granting the financial support in question, or if it transpires that, without Commission approval having being sought, the action has been subjected to significant change which conflicts with its nature or with its implementing conditions.

4.   If the time limits have not been observed or if only part of the allocated financial assistance is justified by the progress made with implementing an action, the Commission shall request the beneficiary to submit observations within a specified period. If the beneficiary does not give a satisfactory answer, the Commission may cancel the remaining financial assistance and demand repayment of sums already paid.

5.   Any amount unduly paid shall be repaid to the Commission. Interest shall be added to any sums not repaid in due time under the conditions laid down in Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities (10).

Article 13

Supervision

1.   The beneficiary shall submit technical and financial reports on the progress of work for any action financed under this Decision. A final report shall also be submitted within three months of the completion of the action. The Commission shall determine the form and subject-matter of the reports.

2.   For a period of five years following the last payment in respect of any action, the beneficiary of financial assistance shall keep available for the Commission all the supporting documents regarding expenditure on the action.

3.   The Commission shall take every other step necessary to verify that the actions financed are carried out properly and in compliance with the provisions of this Decision and Regulation (EC, Euratom) No 1605/2002.

Article 14

Monitoring and evaluation

By 31 December 2009 at the latest, the Commission shall submit to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions a report on the implementation, results and overall assessment of the measures laid down in Article 3 to serve as a basis for future EU policies, measures and actions in this field.

Article 15

Entry into force

This Decision shall enter into force on the day following that of its publication in the Official Journal of the European Union.

Article 16

Addressees

This Decision is addressed to the Member States.

Done at Brussels, ...

For the European Parliament

The President

...

For the Council

The President

...

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(1)OJ C 185, 8.8.2006, p. 42.

(2)OJ C 206, 29.8.2006, p. 44.

(3)  Opinion of the European Parliament of 1 June 2006 and Council Decision of ... (not yet published in the Official Journal).

(4)  See Commission communication of 29 June 2005 to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions on civil society dialogue between the EU and candidate countries.

(5)OJ C 139, 14.6.2006, p. 1.

(6)OJ L 184, 17.7.1999, p. 23. Decision as amended by Decision 2006/512/EC (OJ L 200, 22.7.2006, p. 11).

(7)OJ L 312, 23.12.1995, p. 1.

(8)OJ L 292, 15.11.1996, p. 2.

(9)OJ L 136, 31.5.1999, p. 1.

(10)OJ L 248, 16.9.2002, p. 1.

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ANNEX

MEASURES REFERRED TO IN ARTICLE 3

A.   Co-financing of actions on a community scale

A limited number of emblematic actions on a European scale aimed at raising awareness, particularly among young people, of the objectives of the European Year of Intercultural Dialogue may receive a Community grant of up to 80 % of the total cost.

These actions may consist of particular events, including a Community event to open and close the European Year of Intercultural Dialogue in cooperation with the Presidencies in office during 2008.

As an indication, approximately 30 % of the total budget allocated will be devoted to these actions.

B.   Co-financing of actions on a national scale

Actions at national level with a strong European dimension may fulfil the conditions for receiving Community aid of up to 50 % of the total cost.

These actions may relate in particular to the cofinancing of one national initiative per Member State.

As an indication, approximately 30 % of the total budget allocated will be devoted to these actions.

C.   Actions on a community scale

D.   Actions receiving non-financial community support

The Community will grant non-financial support, including written authorisation to use the logo, once developed, and other materials associated with the European Year of Intercultural Dialogue, in initiatives from public or private organisations, in so far as the latter may provide assurances to the Commission that the initiatives in question are or will be carried out during 2008 and are likely to make a significant contribution to achieving the objectives of the European Year of Intercultural Dialogue. Initiatives organised in third countries in association or cooperation with the European Year of Intercultural Dialogue, without being supported financially by it, may also receive non-financial support from the Community and use the logo and other materials associated with the European Year of Intercultural Dialogue.

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STATEMENT OF THE COUNCIL'S REASONS

I.   INTRODUCTION

II.   OBJECTIVE

The proposal aims to declare 2008 the European Year of Intercultural Dialogue. Intercultural dialogue being closely linked to the fundamental ambition underlying the construction of Europe, namely to bring together the peoples of Europe, a European Year devoted to intercultural dialogue will constitute a unique awareness-raising tool for affirming this priority and involving citizens.

The overall objectives of the Year are to contribute to:

The activities of the Year will be developed around three types of action:

The budget for the Year is set at 10 million Euros.

III.   ANALYSIS OF THE COMMON POSITION

1.   General comments

The Council's common position retains the main elements of the Commission's original proposal and is fully in line with the Commission's amended proposal.

2.   European Parliament amendments

The Council has sought in its common position to take account of the European Parliament's concerns and priorities and was able to accept most of Parliament's amendments. Out of the 46 amendments voted by the EP, the Council accepted in full, in part or in principle 33 amendments.

A number of informal contacts took place between the Council, the European Parliament and the Commission during tripartite meetings with a view to reaching an early agreement with the EP. The Council took on board the main concerns of the EP and understands that the text of the common position could be acceptable to the EP.

In addition to a number of amendments improving the drafting of the Decision, or incorporating references to relevant policies or processes, the Council incorporated, in full or in part, the following amendments, introducing substantial changes regarding the implementation of the Year:

Amendments 4 and 5 underlining the cultural and educational dimensions of the renewed Lisbon Strategy and stressing the need to contribute to ensuring equal opportunities and non-discrimination within the European Union;

Amendments 8 and 9 referring to gender equality;

Amendment 29 underlining links between the Year of intercultural dialogue and the European Year of Equal Opportunities for All (2007);

Amendments 11 and 34 mentioning explicitly cooperation with the Council of Europe and UNESCO with in the context of the Year;

Amendments 14, 21 and 36 aiming at ensuring continuity and long-term follow-up to the Year;

Amendments 15 and 25 which introduce a reference to religious diversity;

Amendments 19 and 39 stressing the importance of education in promoting intercultural dialogue;

Amendments 20 and 41 on recognition of best practices;

Amendments 27 and 30 emphasizing the regional and local level;

Amendments 28 and 42 underlining the need to consult trans-national networks and civil society;

Amendment 32 on cooperation with other institutions, notably the European Parliament.

Regarding the allocation of financial resources, the Council has sought a balanced compromise on the financial resources dedicated to information and promotions campaigns (Amendment 37), with a limitation of 40 % of the overall budget dedicated to actions on a Community scale ( information and promotion activities and other actions) and approximately 30 % of the budget each for cofinancing of actions at Community and at national level. Amendment 35 limiting preparatory actions to 30 % of the budget was also incorporated.

IV.   CONCLUSION

The Council considers that, as a whole, its common position is fully in line with the objectives of the Commission's amended proposal. The Council also considers that it has taken due account of the objectives pursued by the European Parliament in its amendments to the Commission's proposal and looks forward to an agreement with the Parliament in the near future with a view to the early adoption of the Decision.

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COMMON POSITION (EC) No 31/2006

adopted by the Council on 14 November 2006

with a view to the adoption of Decision No .../2006/EC of the European Parliament and of the Council of ... establishing a programme of Community action in the field of consumer policy (2007-2013)

(Text with EEA relevance)

(2006/C 301 E/05)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 153 thereof,

Having regard to the proposal from the Commission,

Having regard to the Opinion of the European Economic and Social Committee (1),

Having regard to the opinion of the Committee of the Regions (2),

Acting in accordance with the procedure laid down in Article 251 of the Treaty (3),

Whereas:

HAVE DECIDED AS FOLLOWS:

Article 1

Establishment of the programme

A programme of Community action in the field of consumer policy covering the period from ... (7) to 31 December 2013, hereinafter referred to as ‘the Programme’, is hereby established.

Article 2

Aim and objectives

1.   The aim of the Programme shall be to complement, support and monitor the policies of the Member States and to contribute to protecting the health, safety and economic and legal interests of consumers, as well as to promoting their rights to information, to education and to organise themselves in order to safeguard their interests.

2.   The aim referred to in paragraph 1 shall be pursued through the following objectives:

These objectives shall be achieved through a combination of actions and instruments drawn from the list set out in Annex I according to the priorities set out in the annual work plan referred to in Article 7(2)(a).

Article 3

Funding

1.   The financial envelope for the implementation of the Programme for the period from ... (7) to 31 December 2013 is hereby set at EUR 156 800 000 (8).

2.   Annual appropriations shall be authorised by the budgetary authority within the limits of the financial framework.

Article 4

Financial contributions

1.   Financial contributions by the Community shall not exceed the following levels:

2.   Financial contributions by the Community may take the form of:

3.   The criteria for assessing whether actions exhibit exceptional utility within the meaning of paragraph 1(a) shall be established in advance in the annual work plan. Actions of exceptional utility shall benefit, in particular, consumers from Member States which acceded to the European Union on or after 1 May 2004.

4.   The renewal of financial contributions set out in paragraphs 1(c) and 1(d) shall be exempted from the principle of gradual decrease.

5.   For the purposes of paragraphs 1 and 2, financial contributions by the Community may also be given in the form of flat-rate or lump sum financing where this is suited to the nature of the actions concerned as defined in the annual work plan. In the case of flat-rate or lump sum financing, the percentage limits provided for in paragraph 1 shall not apply, although co-financing is still required.

Article 5

Beneficiaries

The classes of beneficiaries eligible for the financial contributions established in Article 4 are set out in Annex II.

Article 6

Administrative and technical assistance

1.   The financial allocation for the Programme may also cover expenses pertaining to preparatory, monitoring, control, audit and evaluation activities which are required directly for the management of the Programme and the achievement of its objectives; in particular, studies, meetings, information and publication actions, expenses linked to IT networks focusing on information exchange, together with all other technical and administrative assistance expenses incurred by the Commission for the management of the Programme.

2.   The financial allocation for the Programme may also cover technical and administrative assistance expenses necessary to ensure the transition between the Programme and the measures adopted under Decision No 20/2004/EC. If necessary, appropriations may be entered in the budget beyond 2013 to cover these expenses, to enable the management of actions not completed by 31 December 2013.

Article 7

Implementation

1.   The Commission shall be responsible for the implementation of the Programme.

Actions in pursuit of the aim and objectives set out in Article 2 shall make full use of appropriate available methods of implementation including, in particular, direct or indirect implementation by the Commission on a centralised basis.

2.   The procedure referred to in Article 10(2) shall apply to the adoption of:

3.   The Commission shall inform the Committee referred to in Article 10 of the actions undertaken in the implementation of the Programme.

Article 8

Participation of third countries

The Programme shall be open to the participation of:

Article 9

Monitoring, evaluation and dissemination of results

1.   The Commission, in close cooperation with the Member States, shall monitor the implementation of the actions of the Programme in the light of its objectives. It shall report thereon to the Committee referred to in Article 10, and shall keep the European Parliament and the Council informed thereof.

2.   At the request of the Commission, Member States shall submit to it information on the implementation and impact of the Programme.

3.   The Commission shall ensure that the Programme is evaluated three years after its start, and following its end. The Commission shall communicate the results of those evaluations, accompanied by its comments, to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions.

The Commission shall make the results of actions undertaken pursuant to this Decision publicly available.

Article 10

Committee procedure

1.   The Commission shall be assisted by a Committee.

2.   Where reference is made to this paragraph, Articles 3 and 7 of Decision 1999/468/EC shall apply, having regard to the provisions of Article 8 thereof.

3.   The Committee shall adopt its rules of procedure.

Article 11

Repeal

Decision No 20/2004/EC is hereby repealed.

Article 12

Entry into force

This Decision shall enter into force on the day following that of its publication in the Official Journal of the European Union.

Done at ...,

For the European Parliament

The President

...

For the Council

The President

...

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(1)OJ C 88, 11.4.2006, p. 1.

(2)OJ C 192, 16.8.2006, p. 8.

(3)  Opinion of the European Parliament of 23 March 2006 (not yet published in the Official Journal), Common Position of the Council of 14 November 2006 and Position of the European Parliament of ... (not yet published in the Official Journal).

(4)OJ L 5, 9.1.2004, p. 1. Decision as amended by Decision No 786/2004/EC (OJ L 138, 30.4.2004, p. 7).

(5)OJ C 139, 14.6.2006, p. 1.

(6)OJ L 184, 17.7.1999, p. 23. Decision as amended by Decision No 2006/512/EC (OJ L 200, 22.7.2006, p. 11).

(7)  The date of entry into force of this Decision.

(8)  This amount is based on 2004 figures and shall be subject to technical adjustment to take account of inflation.

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ANNEX I

ACTIONS AND INSTRUMENTS REFERRED TO IN ARTICLE 2

Objective I

To ensure a high level of consumer protection, notably through improved evidence, better consultation and better representation of consumers' interests.

Action 1

The collection, exchange, and analysis of data and information that provide an evidence base for the development of consumer policy and for the integration of consumer interests in other Community policies, including:

Action 2

The collection, exchange, analysis of data and information, and development of assessment tools that provide an evidence base on the safety of consumer goods and services, including consumer exposure to chemicals released from products, risks and injuries in relation to specific consumer products and services, and technical analysis of alert notifications.

Action 3

Support for scientific advice and risk evaluation, including the tasks of the independent scientific committees established by Commission Decision 2004/210/EC of 3 March 2004 setting up Scientific Committees in the field of consumer safety, public health and the environment (1).

Action 4

Preparation of legislative and other regulatory initiatives and promotion of co-regulatory and self-regulatory initiatives, including:

Action 5

Financial contributions to the functioning of European consumer organisations.

Action 6

Financial contributions to the functioning of European consumer organisations representing consumer interests in the development of standards for products and services at Community level.

Action 7

Capacity building for regional, national and European consumer organisations, notably through training and exchange of best practice and expertise for staff members, in particular for consumer organisations in Member States which acceded to the European Union on or after 1 May 2004.

Objective II

To ensure the effective application of consumer protection rules, in particular through enforcement cooperation, information, education and redress.

Action 8

Actions to improve the effective application of Community consumer protection legislation, in particular Directive 2001/95/EC of the European Parliament and of the Council of 3 December 2001 on general product safety (2) and Regulation (EC) No 2006/2004 of the European Parliament and of the Council of 27 October 2004 on cooperation between national authorities responsible for the enforcement of consumer protection laws (3), including:

Action 9

Legal and technical expertise, including studies, for the monitoring and assessment of the transposition, implementation and enforcement of consumer protection legislation by Member States, notably Directive 2005/29/EC of the European Parliament and of the Council of 11 May 2005 concerning unfair business-to-consumer commercial practices in the internal market (4) and Regulation (EC) No 2006/2004. This also includes the development and maintenance of easily and publicly accessible databases covering the implementation of Community consumer protection legislation.

Action 10

Actions on information, advice and redress, including:

Action 11

Actions on consumer education, including:

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(1)OJ L 66, 4.3.2004, p. 45.

(2)OJ L 11, 15.1.2002, p. 4.

(3)OJ L 364, 9.12.2004, p. 1. Regulation as amended by Directive 2005/29/EC (OJ L 149, 11.6.2005, p. 22).

(4)OJ L 149, 11.6.2005, p. 22.

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ANNEX II

BENEFICIARIES ELIGIBLE FOR THE FINANCIAL CONTRIBUTIONS ESTABLISHED IN ARTICLE 4

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(1)OJ L 345, 31.12.2003, p. 1.

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STATEMENT OF THE COUNCIL'S REASONS

I.   INTRODUCTION

II.   OBJECTIVE

The new programme for Community action in the field of consumer policy for the period 2007-2013 is to replace the current programme established by the Decision No 20/2004/EC. The two key objectives of the programme are to ensure

These objectives will be implemented through a combination of 11 actions listed in Annex I that represent a high degree of continuation with respect to the present programme. Concrete priorities and actions, as well as other aspects of the programme's implementation (e.g. allocation of financial resources, selection and award criteria for the percentage of the Community contribution, the planned timing of calls for tenders, the joint actions and the calls for proposals), will be selected annually in the work programme in consultation with the programme Committee.

The total amount of the budget allocated to the programme stands at EUR 138.8 million in 2004 prices (i.e. EUR 156,8 million in current prices).

III.   ANALYSIS OF THE COMMON POSITION

1.   General remarks

In general, the Council has followed the European Parliament's first reading Opinion that was incorporated to a large extent in the Commission's amended proposal. In particular, the Council agreed to the split of the Commission's original proposal into two separate programmes (one in the field of health and one in the field of consumer protection).

The Council also accepted the budget for the Programme proposed by the Commission as mentioned in section II above.

The Commission has accepted the common position agreed by the Council.

2.   European Parliament Amendments

In its plenary vote on 23 March 2006, the European Parliament adopted 56 Amendments to the Commission's initial proposal. The large majority of these amendments were integrated in the Commission's amended proposal with respect of which the Council has not introduced any important changes.

The Council:

IV.   CONCLUSION

The Council considers that its common position, which incorporates the Amendments mentioned in Sections III.2.(a) and (b), takes good account of the first reading Opinion of the European Parliament.

The common position represents a balance of concerns and interests ensuring that the objectives of the programme could be implemented through a tightened number of actions and instruments as well as more accurate methods and procedures which have been reformulated in line with the European Parliament's first reading Opinion, the Commission's amended proposal and the existing consumer programme (Decision No 20/2004/EC).

It also ensures the protection of the consumer as this Decision will improve the effectiveness of Community actions and make them more visible.

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(1)  8064/05.

(2)OJ C 88, 11.4.2006, p.1.

(3)OJ C 192, 16.8.2006, p.8.

(4)  7538/06.

(5)  9909/06.

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