AGREEMENT between the European Economic Community and the Republic of Iceland establishing cooperation in the field of training in the context of the implementation of Comett II (1990-1994)

THE EUROPEAN ECONOMIC COMMUNITY,

hereinafter called 'the Community'

and

THE REPUBLIC OF ICELAND,

hereinafter called 'Iceland',

both being hereinafter called the 'Contracting Parties',

Whereas, by its Decision of 16 December 1988, the Council of the European Communities, hereinafter called 'the Council', adopted the second phase of the programme on cooperation between universities and industry in the Community regarding training in the field of technology, hereinafter referred to as 'Comett II';

Whereas, the Contracting Parties have a common interest in cooperation in this field, as part of the wider cooperation between the Community and the EFTA countries in the field of education and training;

Whereas, in particular, cooperation between the Community and Iceland with a view to pursuing the objectives fixed for Comett II, by its nature enriches the impact of Comett actions so as to strengthen the skill levels of human resources in the Community and Iceland;

Whereas, the Contracting Parties consequently expect to obtain mutual benefit from the participation of Iceland in Comett II,

HAVE AGREED AS FOLLOWS:

Article 1

Cooperation between the Community and Iceland shall be established in the field of training in technology in the context of the implementation of Comett II. The summary of the Comett II programme and its objectives are set out in Annex I.

Article 2

Iceland shall take part in a range of measures to promote cooperation between universities and industry in Iceland, on the one hand, and Community universities and industry, on the other hand, regarding initial and continuing training in the field of, in particular, advanced technology, within the framework of Comett II.

Article 3

For the purposes of the Agreement, the term 'university'

is used in its general sense to indicate all types of post-secondary education and training establishments which offer, within the framework of initial and/or continuing training, qualifications or diplomas of that level, whatever such establishments may be called in the Contracting Parties;

the term 'industry' is used to indicate all types of economic activity, including not only large but also small and medium-sized businesses whatever their legal status and manner of applying new technologies. The term also covers independent economic organizations, in particular chambers of commerce and industry and/or their equivalents, professional associations and organizations representing employers or employees.

Article 4

As far as the different strands of Comett II are concerned, the participation of 'universities' and 'industry' from Iceland in Comett II activities and projects shall be subject to the following conditions and rules:

1. STRAND A:

Development of university-industry training partnerships (UITP)

The content and the objectives of this strand shall

be those indicated in Annex I, point 4, Section A (A - European network).

Iceland and Icelandic organizations may benefit from the different measures referred to above on the same basis as Community Member States and bodies and under the same conditions.

With regard to UITPs of a sectoral nature, however, the following conditions shall apply:

i(i) As project promoters, universities and industry from Iceland may submit applications for financial support only for the creation of a sectoral UITP in which organizations from at least two Community Member States are participating. Such projects may additionally include partner organizations from other EFTA countries having a cooperation agreement concerning Comett II;

(ii) As project participants, universities and industry from Iceland may be members of a sectoral UITP promoted by universities and/or industry of a Community Member State, provided that the project concerned already meets - without the participation of the EFTA partner - the conditions of eligibility prescribed for such projects. Universities and industry from Iceland may also participate in projects promoted by universities and/or industry from other EFTA countries having a cooperation agreement concerning Comett II, provided that those projects meet the requirement that organizations from at least two Community Member States are participating in the project.

2. STRAND B:

Transnational exchanges

The content and the objectives of this strand shall

be those indicated in Annex I, point 4, Section B (B - Transnational exchanges).

Under this agreement, Comett may only support exchanges in either direction between Iceland and a Community Member State.

Universities and/or industry from Iceland may submit applications for financial support for sending and/or receiving students and/or personnel only to/from industry and/or universities in Community Member States.

Universities and/or industry from a Community Member State may submit applications for financial support for sending and/or receiving students and/or personnel only to/from industry and/or universities in Iceland.

Exchanges between two different EFTA countries will not be supported under Comett II.

3. STRAND C:

Joint projects for continuing training, in particular, in advanced technology and for multimedia distance training

The content and the objectives of this strand shall be those indicated in Annex I, point 4, Section C (C - Joint projects for continuing training, in particular, in advanced technology and for multimedia distance training).

As project promotors, universities and industry from Iceland may submit applications for financial support only for joint projects in which organizations from at least two Community Member States are participating. Such projects may additionally include partner organizations from other EFTA countries having a cooperation agreement concerning Comett II.

As project participants, universities and industry from Iceland may participate in a joint project promoted by a university or industry from a Community Member State, provided that the project concerned already meets - even without the participation of the EFTA partner - the conditions of eligibility prescribed for such projects.

Universities and industry from Iceland may also participate in projects promoted by a university or industry from another EFTA country having a cooperation agreement concerning Comett II, provided that those projects meet the requirements that organizations from at least two Community Member States are participating in the project.

4. STRAND D:

Complementary promotion and back-up measures

The content and the objectives of this strand shall be those indicated in Annex I, point 4, Section D (D - Complementary promotion and back-up measures).

Iceland shall participate in the information arrangements for Comett II, notably by cooperating in the establishment of one national information centre for Comett in that country.

Iceland and Icelandic organizations may benefit from the different measures referred to above on the same basis as Community Member States and bodies and under the same conditions.

Article 5

The financial contribution of Iceland, covering its

participation in the Comett II programme, shall be

established in proportion to the amount entered each year in the general budget of the European Communities for appropriations covering commitments in respect of the Comett II programme.

The proportionality factor governing the contribution by Iceland shall be determined by the ratio between its gross domestic product (GDP), at market prices, and the sum of gross domestic product, at market prices, of the Member States of the Community and Iceland. This ratio will be calculated year-by-year on the bass of the latest availble OECD statistical data.

The financial provision relating to the funds estimated as necessary for the execution of the Comett II programme within the Community - net of any contribution by the EFTA countries - is set out in Annex II.

The rules governing the contribution by Iceland to the development of the Comett II programme are set out in Annex III.

Article 6

Subject to the special requirements referred to in Article 4 regarding participation by universities and industry from Iceland, the terms and conditions for the submission and evaluation of proposals/projects and the terms and conditions for the granting and conclusion of contracts under the Comett II programme shall be the same as those applicable to universities and industry in the Community. The contracts drawn up by the Commission shall show the rights and obligations of universities and industry from Iceland and in particular the methods of disseminating, protecting and exploiting the results of the training projects.

Article 7

1. A Joint Committee is hereby established.

2. The Committee shall deliver opinions on the following points:

(a) in so far as they are relevant to the participation of universities and industry from Iceland: the general guidelines governing the Comett II programme; the general guidelines for the financial asistance to be provided in the Comett II programme; questions concerning the general balance of the Comett II programme, including a breakdown of the various types of action;

(b) the various types of projects described in Annex I.

3. As far as the points referred to in paragraph 2 (a) and (b) are concerned, the Community representative shall bring the matter before the Committee.

4. The representative of the Community shall take the appropriate steps to ensure coordination between the implementation of this Agreement and the decisions taken

by the Community in respect of the implementation of Comett II.

5. The Committee shall be responsible for all the other matters concerning the administration of the Agreement and shall ensure its proper implementation. For this purpose, it shall make recommendations.

6. For the purpose of the proper implementation of

the Agreement, the Contracting Parties shall exchange information and, at the request of either Party, shall hold consultations within the Committee.

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

8. The Committee shall consist of representatives of the Community, on the one hand, and of representatives of Iceland, on the other.

9. The Committee shall act by mutual agreement.

10. The Committee shall meet, at the request of either Contracting Party, in accordance with the conditions to be laid down in its rules of procedure.

Article 8

All the decisions concerning the selection of the various types of projects described in Annex I shall be taken by the Commission of the European Communities.

Article 9

The Commission shall ensure that the composition of the expert group which advises the Commission in the execution of the Comett II programme is such as to enable it to give any advice required in regard to the participation of universities and industry from Iceland.

Article 10

The Contracting Parties shall make efforts to facilitate the free movement and residence of students and personnel participating in Iceland and in the Community in activities covered by the Agreement.

Article 11

Iceland shall submit to the Commission, to assist the latter in drafting its annual report on Comett II as well as the interim and final evaluation reports, a contribution describing the national measures taken by Iceland in this regard. A copy of the annual reports as well as of its interim evaluation and final evaluation reports shall be transmitted to Iceland.

Article 12

In regard to the application process, contracts, reports to be submitted and other administrative arrangements for the Comett II programme, the languages used will be restricted to the official languages of the Community.

Article 13

This Agreement shall apply, on the one hand, to the territories in which the Treaty establishing the European Economic Community is applied and under the conditions laid down in that Treaty and, on the other hand, to the territory of Iceland.

Article 14

1. This Agreement is concluded for the duration of the Comett II programme.

2. Should the Community revise the Comett II programme, the Agreement may be re-negotiated or terminated. Iceland shall be notified of the exact content of the revised programme within one week of its adoption by the Community. The Contracting Parties shall notify each other within three months after the Community decision has been adopted if a re-negotiation of termination of the Agreement is envisaged. In the event of termination, the practical arrangements for dealing with outstanding commitments shall be the subject of negotiations between the Contracting Parties.

3. Either Contracting Party may at any time request a revision of the Agreement. To this end, it shall submit a request to the other Contracting Party, giving its reasons. The Contracting Parties may instruct the Joint Committee to examine this request and, where appropriate, to make recommendations to them, particularly with a view to opening negotiations.

Article 15

This Agreement shall be approved by the Contracting Parties in accordance with their existing procedures. Subject to the Contracting Parties' having notified each other of the completion of the procedures necessary for this purpose, it shall enter into force on 1 January 1990.

After this date, the Agreement shall enter into force on the first day of the month following such notification. However, if such notification has not taken place by 31 March of any year, the provisions of the Agreement shall not enter into force before 1 January of the following year.

Article 16

This Agreement shall be drawn up in duplicate in the

Danish, Dutch, English, French, German, Greek, Italian, Portuguese, and Spanish languages, each of these texts being equally authentic.

Hecho en Bruselas, el diecinueve de diciembre de mil novecientos ochenta y nueve.

Udfaerdiget i Bruxelles, den nittende december nitten hundrede og niogfirs.

Geschehen zu Bruessel am neunzehnten Dezember neunzehnhundertneunundachtzig.

iEgine stis Vryxelles, stis deka ennea Dekemvrioy chilia enniakosia ogdonta ennea.

Done at Brussels on the nineteenth day of December in the year one thousand nine hundred and eighty-nine.

Fait à Bruxelles, le dix-neuf décembre mil neuf cent quatre-vingt-neuf.

Fatto a Bruxelles, addì diciannove dicembre millenovecentottantanove.

Gedaan te Brussel, de negentiende december negentienhonderd negenentachtig.

Feito em Bruxelas, em dezanove de Dezembro de mil novecentos e oitenta e nove.

Gjoert í Brussel, hinn nítjánda dag desembermánaóar nítján hundruó áttatíu og níu.

Por el Consejo de las Comunidades Europeas

For Raadet for De Europaeiske Faellesskaber

Fuer den Rat der Europaeischen Gemeinschaften

Gia to Symvoylio ton Evropaikon Koinotiton

For the Council of the European Communities

Pour le Conseil des Communautés européennes

Per il Consiglio delle Comunità europee

Voor de Raad van de Europese Gemeenschappen

Pelo Conselho das Comunidades Europeias

Fyrir hoend ráds Evrópubandalaganna

Por el Gobierno de la República de Islandia

For regeringen for republikken Island

Fuer die Regierung der Republik Island

Gia tin Kyvernisi tis Dimokratias tis Islandias

For the Government of the Republic of Iceland

Pour le gouvernment de la République d'Islande

Per il Governo della Repubblica d'Islanda

Voor de Regering van de Republiek Ijsland

Pelo Governo da República da Islândia

Fyrir rikisstjórn lydveldisins Íslands

ANNEX I

1. The Comett II programme comprises a range of transnational projects to strengthen and encourage cooperation between universities and industry within the European framework in regard to initial and continuing training in, in particular, advanced technology in response to technological change and social changes in the context of completion of the internal market and the strengthening of its economic and social cohesion.

These measures are directed at trainees, including those who have completed their initial training, and at persons in active employment, including employers' and workers' representatives and the training officers concerned.

2. Within the framework of the Comett programme the projects which are to receive Community assistance will be chosen on the basis of, in particular, their stimulative and exemplary character, and their contribution to the achievement of the objectives set out in Article 3 of the Decision.

The selection of projects in the various strands will take account of the development of the framework programme for technology R & D, to promote the training schemes resulting from Community research, while avoiding duplication. It will also take account of the skills needed by industry and its highly qualified personnel, in particular for small and medium-sized businesses, and of regions where university-industry cooperation is still not very highly developed.

Priority will be given to training geared towards new skills, both in the growth technology industries and in sectors where such technologies are traditionally applied and as regards technology transfer and administration.

3. The projects which are to receive Community assistance will be chosen from projects which:

ii(i) propose to cover ground, whether in terms of content, mechanisms or links, which is new not only for the universities and the industry concerned, but for the Member States concerned and for the Community as a whole;

i(ii) are designed to be disseminated widely and effectively not only in the Member States involved but more widely in the Community;

(iii) are designed explicitly to stimulate similar developments elsewhere in the Community, and to stimulate further development in the universities and the industry concerned.

4. The following measures will be implemented in the course of Comett II:

A. European network

(a) The development and reinforcement of university-industry training partnerships (UITPs) and the extension of the European network, both regional and sectoral, in order to further transnational cooperation particularly in the following fields:

ii(i) in contributing to the identification of training needs in technology and to resolving them in liaison with relevant bodies in this field;

i(ii)

in assisting and facilitating the development and exploitation of projects within the other strands of the Comett II programme;

(iii)

in strengthening cooperation and inter-regional transfer between Member States in the development on initial and continuing training for the needs of technologies, their application and transfer;

(iv)

in developing links in the form of transnational sectoral networks bringing together projects from various strands of the programme in the same area of training.

(b) The Community will grant financial support for activities with a European dimension as well as for the functioning of the UITPs. This flat-rate contribution will not exceed 50 % of the expenditure eligible.

The support will be reduced progressively, with a ceiling per UITP of ECU 70 000, ECU 60 000

and ECU 50 000 respectively for the first three years. In certain exceptional and duly justified cases, the Community contribution may exceed the three-year limit.

However, additional expenditure by universities incurred in the preparation and implementation of joint training projects may, if necessary, be financed by the Community up to 100 %.

(c) The activities to be undertaken under strand A will not exceed 12 % of the overall annual budget allocated to the Comett II programme subject - with regard to this strand and to the other strands - to any changes which might arise as the implementation of the programme proceeds.

B. Transnational exchanges

(a) Specific financial assistance to promote, for the benefit of all Member States, transnational exchange through the allocation of grants for

ii(i) students undergoing periods of from three to 12 months' training in industry in another Member State. One of the important assessment criteria in the selection of projects submitted will be the commitment of the sending university (within the meaning of Article 2), to the possibility of this training period in industry being, recognized as an integral part of the student's course, taking account of the specific nature of national education systems and possibilities for such recognition under them;

i(ii)

persons who have completed their initial training, either enrolled at a university or after graduation and as a transition between study and a first employment, taking up placements of six months to two years in a business undertaking in another Member State for the purpose of taking part in an industrial development project within that undertaking;

(iii)

personnel seconded from universities and industry to industry or a university respectively in another Member State to bring their skills to the industry or university in question for the improvement of the training activities and the professional practices of the host organization.

(b) The Community's financial contribution will be limited to direct and indirect mobility costs of recipients of grants, costs of organizing and monitoring the activities implemented and, where necessary, the costs of foreign language preparation for recipients. This contribution will not exceed a ceiling of ECU 6 000 for 12 months per beneficiary under subparagraph (i), ECU 25 000 for 24 months under subparagraph (ii), and ECU 15 000 for three months under subparagraph (iii) above.

(c) The activities to be undertaken under strand B will not exceed 40 % of the overall budget allocated to the Comett II programme.

C. Joint projects for continuing training in, in particular, advanced technology and for multi-media distance training

(a) Support for crash training courses with a European dimension in, in particular, advanced technology designed for the rapid dissemination - try and in universities and by and in industry - of the results of research and development in the field of new technologies and their applications, as well as for the promotion, particularly for small and medium-sized businesses of the transfer of technological innovation to sectors in which is was not previously applied.

(b)

Support for work on devising, developing and testing at European level joint training projects in, in particular, advanced technology, initiated jointly by different industries in association with the universities concerned in at least two different Member States of the Communities in fields relating to the new technologies and their applications.

(c)

Support for multilateral arrangements for training in, in particular, advanced technology initiated jointly by different industries in association with the universities concerned aimed at establishing systems

for distance learning utilizing new training technologies and/or resulting in transferable training products.

(d)

Support for the operations referred to in the foregoing subparagrahs initiated by employers' and workers' organizations.

(e)

In the selection of projects under points (a) to (d) above, the Community will pay special attention to projects:

ii(i) concerning technologies and their applications liable to have a significant impact on industrial development throughout the Community;

i(ii)

facilitating the participation of small and medium-sized business and meeting their needs;

(iii)

directed towards the training of staff responsible for innovation development in industry, including training officers;

(iv)

associating in their execution university and industry partners from the less-developed regions of

the Community;

i(v)

demonstrating active involvement of and financial support from industry in the project;

(vi)

proposing effective means for ensuring the utilization and dissemination of the results throughout the Community.

(f)

The Community's financial contribution will be 50 % of the total expenditure on the initiatives described in points (a) to (d) above. As a general rule, the Community contribution will not exceed ECU 30 000 per course under (a) and ECU 500 000 per project for the total duration of the project for measures under (b) and (c).

However, additional expenses incurred by universities in the preparation and implementing of joint projects for continuous training in advanced technology and multi-media distance learning may, where appropriate, be covered by the Community by up to 100 %.

(g)

Activities to be under strand C will not exceed 40 % of the overall budget allocated to the Comett II programme.

D. Complementary promotion and back-up measures

(a) These measures have as their aim:

iii(i) support for preparatory activities particularly for the less-developed regions, notably in the form of visits or meetings, having as their potential objective the formulation of transnational projects or the extension of existing projects to other partners;

ii(ii)

a structured exchange of information and experience, notably through financial support for the Comett information centres created in each Member State with a view to promoting Community exchange activities and dissemination and promotion activities within the programme;

(ii) (a)

the setting-up of a data bank on Comett projects and similar initiatives in the Member States;

(ii) (b)

the establishment of electronic mail facilities between projects and the partners in the programme;

(ii) (c)

a programme of events (conferences, seminars, exhibitions, etc.) relating to Comett II;

i(iii)

analysis and monitoring of the skills needed by industry at Community level, and its consequent training needs in view of the new technologies and their applications, especially in exploiting within Comett II the results of work conducted elsewhere;

(iv)

better mutual comprehension of the obstacles hindering the development of transnational cooperation between universities and higher education establishments and industry in training with a view to strenghtening this cooperation;

i(v)

continuing evaluation of Comett II as it is implemented as well as technical and logistical support for the execution of the programme.

(b) The Community's financial contribution for these back-up measures may be up to 100 % of the actual expenditure committed for these initiatives.

(c) The activities to be undertaken under strand D will not exceed 8 %of the overall budget allocated to the Comett II programme.

ANNEX II

FINANCIAL ANNEX

Article 1

The funds estimated as necessary - net of any contribution by the EFTA countries - for the implementation of the Comett II programme in the Community and fixed in the Comett Decision of 16 December 1988 amount to ECU 200 million, for the period from 1 January 1990 to 31 December 1994.

Article 2

The resources allocated to the Comett II programme shall be in conformity with the community financial perspectives and their developments. Appropriations actually available each year shall be decided during the Community budgetary procedure.

Article 3

Before the beginning of each year, the Commission shall inform Iceland of the amount of the appropriations available for that year in respect of the Comett II programme. Amendments of this amount occurring during the year shall be communicated to Iceland by the Commission.

ANNEX III

FINANCING RULES

Article 1

The financial regulation in force applicable to the general budget of the European Communities shall apply, notably to the management of theappropriations.

Article 2

At the beginning of each year, or whenever the Comett II programme is revised so as to involve an increase in the amount estimated as necessary for its implementation, the Commission shall send to Iceland a call for funds corresponding to its contribution to the costs under the Agreement.

This contribution shall be expressed in ECU and paid into an ECU bank account of the Commission.

Iceland shall pay its contribution to the annual costs under the Agreement according to the call for funds and at the latest three months after the call for funds is sent. Any delay in the payment of the contributing shall give rise to the payment of interest by Iceland on the outstanding amount from the due date. The interest rate corresponds to the rate applied by the (FECOM) (EFMC), for the month of the due date, for its operations in ECU (1), increased by 1,5 percentage points.

(1) Rate published monthly in the Official Journal of the European Communities - C series.