# CE2004084EN.01078401.xml

| 3.4.2004 | EN | Official Journal of the European Union | CE 84/784 |
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3.4.2004

EN

Official Journal of the European Union

CE 84/784

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(2004/C 84 E/0881)

WRITTEN QUESTION P-0407/04

by Hugues Martin (PPE-DE) to the Commission

(6 February 2004)

Subject:   CRAFT Community programmes

Subject:

Since the 1990s, the European Union has been financing so-called CRAFT projects through its successive Community R + D programmes. The purpose of these projects as to support the needs of SMEs in R + D, facilitate transnational cooperation between SMEs on R + D, and to encourage cooperation cooperation between SMEs and European research.

CRAFT has enabled many SMEs from throughout the European Union to come together to set up R + D projects. Hence its sheer importance.

However, now that Europe has embarked on a multi-annual programme in favour of companies, and particularly SMEs, with the particular goal of simplifying the legislative, administrative and financial measures which concern them, it appears that Europe itself no longer feels this burning obligation. The paperwork required to obtain European aid is more and more complex to handle, and once the submission has been accepted, payment takes a long time, which discourages SMEs. Such, accordingly to my information, is the case of CRAFT.

For that reason, even if strict rules are necessary in order for European funding to be agreed, could the Commission itself not make an effort to achieve administrative simplification, in collaboration with the SMEs, so that all Europe's SMEs can benefit from such programmes, whose importance requires no demonstration?

With particular regard to CRAFT:

| — | Would it not be possible for SMEs to obtain the relevant contracts from the Commission in their own languages, so as to avoid any doubts which may arise from unofficial translations, or the need to use a language which they are not fully cognisant with, even if the contract itself is signed in English? |
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Would it not be possible for SMEs to obtain the relevant contracts from the Commission in their own languages, so as to avoid any doubts which may arise from unofficial translations, or the need to use a language which they are not fully cognisant with, even if the contract itself is signed in English?

| — | Would it not be possible to ask the research centres simply to put in their bills Proforma, and thus save themselves VAT problems? |
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Would it not be possible to ask the research centres simply to put in their bills Proforma, and thus save themselves VAT problems?

| — | Could the Commission not commit itself to a maximum delay in paying-out of three months, since any longer period creates difficulties for the cash offices of SMEs? |
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Could the Commission not commit itself to a maximum delay in paying-out of three months, since any longer period creates difficulties for the cash offices of SMEs?

| — | Would it not be reasonable to reduce the deadlines for signing by the Commission's lawyers to two months for adding possible riders? |
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Would it not be reasonable to reduce the deadlines for signing by the Commission's lawyers to two months for adding possible riders?

| — | Finally, would it not be appropriate to redefine the role of the Scientific Officers as that of mediators, with the obligation to ensure that CRAFT rules are respected, but by helping the SMEs rather than cracking down on them? |
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Finally, would it not be appropriate to redefine the role of the Scientific Officers as that of mediators, with the obligation to ensure that CRAFT rules are respected, but by helping the SMEs rather than cracking down on them?

Answer given by Mr Busquin on behalf of the Commission

(12 March 2004)

(12 March 2004)

In relation to the calls for Co-operative Research Projects within the 6th Framework Programme (FP6), the Commission understands the particular needs of small and medium-sized enterprises (SMEs) to achieve an optimal and efficient procedure in processing research project applications and approving those projects which are successful in obtaining Community financing.

With particular regard to the question of the Honourable Member on CRAFT Community Programmes, the Commission would like to indicate the following:

| — | The contracts between the Commission and the Consortia are implemented in English since it is usually chosen as the working language of the Partners involved within the consortia, which average eight in number. Translations of the FP6 model contract are, however, available in all eleven official languages on the Europa and Cordis websites to facilitate the understanding of the contracts by the consortia partners. See: (http://europa.eu.int/comm/research/fp6/working-group/model-contract/index_en.html or http://www.cordis.lu/fp6/find-doc.htm and choose download links within subheading ‘Model contract’ under title Essential Documents). |
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The contracts between the Commission and the Consortia are implemented in English since it is usually chosen as the working language of the Partners involved within the consortia, which average eight in number. Translations of the FP6 model contract are, however, available in all eleven official languages on the Europa and Cordis websites to facilitate the understanding of the contracts by the consortia partners. See: (http://europa.eu.int/comm/research/fp6/working-group/model-contract/index_en.html or http://www.cordis.lu/fp6/find-doc.htm and choose download links within subheading ‘Model contract’ under title Essential Documents).

| — | Under FP5 SME specific activities, Research and Technological Development (RTD) performers (Research Centres) acted as subcontractors to the SME partners. In that context, they invoice the SME the price of their service, thus leading to an incurred cost for the SME partners which the Community reimburses in part. As Proforma invoices do not justify a cost from a financial accounting perspective and as it might open the door to incorrect application of the national legislation of the Member States, RTD performers were requested to provide a proper invoice including VAT. |
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Under FP5 SME specific activities, Research and Technological Development (RTD) performers (Research Centres) acted as subcontractors to the SME partners. In that context, they invoice the SME the price of their service, thus leading to an incurred cost for the SME partners which the Community reimburses in part. As Proforma invoices do not justify a cost from a financial accounting perspective and as it might open the door to incorrect application of the national legislation of the Member States, RTD performers were requested to provide a proper invoice including VAT.

Under FP6, the RTD performers are contractors like the SME partners, that is, direct beneficiaries of the grant awarded by the Community. Accordingly, they charge directly their eligible costs incurred in relation to their activities. No invoices are required of RTD performers under FP6.

| — | For FP6 the Commission has made serious efforts to shorten the time for committing and signing contracts and for approving and processing payments. The Commission is now contractually obliged to make the Community financial contribution to projects as pre-financing within 45 days of the entry into force of the contract and for subsequent payments within 45 days following approval by the Commission of the reports relating to each reporting period. The co-ordinator is thereafter contractually obliged to distribute the Community contribution to the other consortium partners on the basis of the provisions of their consortium agreement. In a case where the deadline is not met by the Commission interest payments can be claimed by the contractors via the Co-ordinator. |
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For FP6 the Commission has made serious efforts to shorten the time for committing and signing contracts and for approving and processing payments. The Commission is now contractually obliged to make the Community financial contribution to projects as pre-financing within 45 days of the entry into force of the contract and for subsequent payments within 45 days following approval by the Commission of the reports relating to each reporting period. The co-ordinator is thereafter contractually obliged to distribute the Community contribution to the other consortium partners on the basis of the provisions of their consortium agreement. In a case where the deadline is not met by the Commission interest payments can be claimed by the contractors via the Co-ordinator.

| — | FP6 has introduced a new financial and legal framework for SME activities. By contrast with other FP6 instruments, there is no collective financial responsibility among the partners of SME activities, thus leading to the implementation of controls required by the Financial Regulation (1) of the Community. However, the Commission intends to significantly reduce the cycle time from project proposal selection to contract preparation, signature and payment of the Community pre-financing. |
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FP6 has introduced a new financial and legal framework for SME activities. By contrast with other FP6 instruments, there is no collective financial responsibility among the partners of SME activities, thus leading to the implementation of controls required by the Financial Regulation (1) of the Community. However, the Commission intends to significantly reduce the cycle time from project proposal selection to contract preparation, signature and payment of the Community pre-financing.

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| — | The Commission aim at providing assistance to SME's in a way which responds best to their needs. In order to facilitate the constitution of consortia and the elaboration of proposals for research contracts, the Commission contributes actively through the organisation or the participation to information sessions and brokerage events, and the maintenance of help desks on technical, legal or financial issues related to FP6 contracts, within the limits and full respect of financial and management requirements. |
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The Commission aim at providing assistance to SME's in a way which responds best to their needs. In order to facilitate the constitution of consortia and the elaboration of proposals for research contracts, the Commission contributes actively through the organisation or the participation to information sessions and brokerage events, and the maintenance of help desks on technical, legal or financial issues related to FP6 contracts, within the limits and full respect of financial and management requirements.

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(1)  Commission Regulation (EC, Euratom) No 2342/2002 of 23 December 2002 laying down detailed rules for the implementation of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities, OJ L 357, 31.12.2002.

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