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( 1 ) OJ NO C 241 , 10 . 10 . 1977 , P . 41 .

( 2 ) OPINION DELIVERED ON 27 OCTOBER 1977 ( NOT YET PUBLISHED IN THE OFFICIAL JOURNAL ).

( 3 ) SEE PAGE 23 OF THIS OFFICIAL JOURNAL .

( 4 ) OJ NO C 86 , 20 . 7 . 1974 , P . 1 .

( 5 ) SEE PAGE 29 OF THIS OFFICIAL JOURNAL .

COUNCIL REGULATION ( EEC ) NO 1996/79

OF 11 SEPTEMBER 1979

ON A COMMUNITY SUPPORT MECHANISM IN THE FIELD OF DATA PROCESSING

THE COUNCIL OF THE EUROPEAN

COMMUNITIES ,

HAVING REGARD TO THE TREATY ESTABLISHING THE EUROPEAN ECONOMIC COMMUNITY , AND IN PARTICULAR ARICLE 235 THEREOF ,

HAVING REGARD TO THE PROPOSAL FROM THE COMMISSION ,

HAVING REGARD TO THE OPINION OF THE EUROPEAN PARLIAMENT ( 1 ),

HAVING REGARD TO THE OPINION OF THE ECONOMIC AND SOCIAL COMMITTEE ( 2 ),

WHEREAS , BY DECISION 79/783/EEC ( 3 ), THE COUNCIL ADOPTED A MULTIANNUAL PROGRAMME ( 1979 TO 1983 ) IN THE FIELD OF DATA PROCESSING ;

WHEREAS , IN ITS RESOLUTION OF 15 JULY 1974 ON A COMMUNITY POLICY ON DATA PROCESSING ( 4 ), THE COUNCIL CONSIDERED IT DESIRABLE TO PROVIDE FOR COMMUNITY FINANCING IN APPROPRIATE FIELDS OF JOINT EUROPEAN INTEREST ;

WHEREAS INDUSTRIAL INNOVATION IN THE FIELD OF DATA PROCESSING INVOLVES HIGH TECHNICAL AND FINANCIAL RISKS WHICH CAN EXCEED THE CAPACITY OF UNDERTAKINGS ;

WHEREAS , SINCE COOPERATION BETWEEN UNDERTAKINGS AND USERS FROM DIFFERENT MEMBER STATES IS A FACTOR IN MORE EFFICIENT DEVELOPMENT AND AN ESSENTIAL ADJUNCT TO NATIONAL EFFORTS , IT IS IMPORTANT THAT COMMUNITY SUPPORT FOR PROJECTS CARRIED OUT BY UNDERTAKINGS IN COOPERATION WITH ONE ANOTHER AND INVOLVING SEVERAL MEMBER STATES BE GRANTED ;

WHEREAS COMMUNITY SUPPORT SHOULD TAKE THE FORM OF REPAYABLE AID WHERE THE RESULTS OF THE PROJECTS IN QUESTION CAN BE EXPLOITED ;

WHEREAS THE GRANTING OF SUCH AID IS NECESSARY IF CERTAIN COMMUNITY AIMS IN THE OPERATION OF THE COMMON MARKET ARE TO BE ACHIEVED ; WHEREAS THE TREATY ESTABLISHING THE EUROPEAN ECONOMIC COMMUNITY HAS NOT HOWEVER PROVIDED THE NECESSARY POWERS ,

HAS ADOPTED THIS REGULATION :

ARTICLE 1

UNDER THE MULTIANNUAL PROGRAMME ( 1979 TO 1983 ) IN THE FIELD OF DATA PROCESSING , ADOPTED BY THE COUNCIL IN ITS DECISION 79/783/EEC , AND TO SATISFY CERTAIN OF ITS OBJECTIVES , THE COMMUNITY MAY CONCLUDE CONTRACTS FOR COMMUNITY SUPPORT WITH UNDERTAKINGS OR USERS IN THE COMMUNITY AND , WHERE APPROPRIATE , IN NON-MEMBER STATES ( HEREINAFTER REFERRED TO AS ' BENEFICIARIES OF THE CONTRACT ' ).

ARTICLE 2

THE CONTRACTS MAY COVER FEASIBILITY STUDIES , PREDEVELOPMENT STUDIES , DEVELOPMENT PROJECTS AND PILOT PROJECTS IN ACCORDANCE WITH THE AIMS AND CRITERIA OF THE MULTIANNUAL PROGRAMME ( 1979 TO 1983 ). IN THE FRAMEWORK OF THESE CRITERIA , THE COMMISSION SHALL , AFTER OBTAINING THE OPINION OF THE ADVISORY COMMITTEE FOR THE MANAGEMENT AND COORDINATION OF DATA-PROCESSING PROGRAMMES , SET UP BY DECISION 79/784/EEC ( 5 ) ( HEREINAFTER REFERRED TO AS ' THE COMMITTEE ' ), PERIODICALLY LAY DOWN MORE DETAILED GUIDELINES FOR THE AWARD OF SUPPORT , TAKING INTO ACCOUNT DEVELOPMENTS IN THE FIELD OF DATA PROCESSING .

ARTICLE 3

THE CONTRACTS MAY BE AWARDED FOR PROJECTS OF COMMUNITY INTEREST WHICH ARE LIKELY TO FOSTER BOTH THE DEVELOPMENT , IN THE COMMUNITY , OF A STRONGER AND MORE COMPETITIVE EUROPEAN DATA-PROCESSING INDUSTRY AND A MORE EFFICIENT APPLICATION OF DATA PROCESSING AND WHICH STEM FROM :

( A ) USERS IN AT LEAST TWO MEMBER STATES ;

( B ) USERS AND UNDERTAKINGS IN AT LEAST TWO MEMBER STATES ;

( C ) UNDERTAKINGS , IN PARTICULAR ASSOCIATIONS COMPRISING AT LEAST WHO UNDERTAKINGS ESTABLISHED IN DIFFERENT MEMBER STATES .

ARTICLE 4

THE COMMISSION MAY PROPOSE PROJECTS OF COMMUNITY INTEREST .

ARTICLE 5

COMMUNITY FINANCIAL AID SHALL BE SUITED TO THE NATURE OF THE PROJECT :

( A ) FEASIBILITY STUDIES WITH A CEILING OF 100 000 EUROPEAN UNITS OF ACCOUNT , PILOT PROJECTS AND PREDEVELOPMENT STUDIES IN WHICH COMMERCIAL INTEREST IS NOT THE DOMINANT FACTOR AND DEVELOPMENT PROJECTS OF PUBLIC INTEREST LAUNCHED ON THE COMMISSION ' S INITIATIVE SHALL RECEIVE UP TO 100 % OF THE TOTAL COST OF FINANCING THE PROJECT ;

( B ) PREDEVELOPMENT STUDIES , DEVELOPMENT PROJECTS AND PILOT PROJECTS STEMMING FROM UNDERTAKINGS OR USERS MAY NOT RECEIVE MORE THAN 50 % OF THE TOTAL COST OF FINANCING THE PROJECT .

ARTICLE 6

APPLICATIONS SHALL BE ADDRESSED TO THE COMMISSION BY THE UNDERTAKINGS OR USERS CONCERNED . THEY SHALL SHOW EVIDENCE THAT THEY ARE JUSTIFIED UNDER THE TERMS OF ARTICLES 2 AND 3 AND SHALL PROVIDE ANY OTHER RELEVANT INFORMATION .

IN THE CASE OF PREDEVELOPMENT STUDIES OR DEVELOPMENT PROJECTS OR PILOT PROJECTS , THE APPLICATIONS SHALL BE ACCOMPANIED BY INFORMATION WHICH MIGHT HAVE A BEARING ON THE POTENTIAL MARKET FOR THE PRODUCT , THE PROGRAMME OR TIMETABLE FOR COMPLETION OF THE PROJECT , A DETAILED COST ESTIMATE AND A FINANCING PLAN WHICH INCLUDES IN PARTICULAR ANY NATIONAL AID OBTAINED OR REQUESTED .

THE COMMISSION MAY REQUEST ANY DOCUMENTS AND ADDITIONAL INFORMATION REQUIRED FOR CONSTITUTING THE DOSSIER .

ARTICLE 7

THE COMMISSION SHALL , SEEKING THE OPINION OF INDEPENDENT EXPERTS ON TECHNICAL AND SCIENTIFIC ASPECTS , ENSURE THAT THE DOSSIER IS CONSTITUTED UNDER CONDITIONS SUITED TO GUARANTEEING INDUSTRIAL SECRECY .

ARTICLE 8

IF , FOLLOWING CONSTITUTION OF THE DOSSIER , THE COMMISSION PROPOSES TAKING FAVOURABLE ACTION ON IT , THE COMMISSION SHALL SUBMIT TO THE COMMITTEE A DRAFT DECISION , ACCOMPANIED BY A REPORT .

THE COMMITTEE SHALL GIVE ITS OPINION ON THE DRAFT DECISION WITHIN TWO MONTHS . ITS DECISIONS SHALL BE TAKEN BY A MAJORITY OF 41 VOTES . WITHIN THE COMMITTEE THE VOTES OF THE MEMBER STATES SHALL BE WEIGHTED IN ACCORDANCE WITH ARTICLE 148 ( 2 ) OF THE TREATY . THE CHAIRMAN SHALL NOT VOTE .

THE COMMISSION SHALL ADOPT THE DRAFT WHERE IT IS IN ACCORDANCE WITH THE OPINION OF THE COMMITTEE . WHERE THE DRAFT DECISION IS NOT IN ACCORDANCE WITH THAT OPINION OR WHERE NO SUCH OPINION IS ISSUED , THE COMMISSION SHALL WITHOUT DELAY MAKE A PROPOSAL TO THE COUNCIL , IN THE FORM OF A DRAFT DECISION . THE COUNCIL SHALL ACT BY A QUALIFIED MAJORITY .

ARTICLE 9

IN THE CASE OF DEVELOPMENT PROJECTS OR PREDEVELOPMENT STUDIES CULMINATING IN A COMMERCIAL PRODUCT , CONTRACTS SHALL BE CONCLUDED IN THE FORMS OF LOANS WITH OR WITHOUT INTEREST . THE DURATION AND TERMS OF SUCH LOANS SHALL BE FIXED ON THE BASIS OF THE PARTICULAR FEATURES OF THE PROJECT .

ARTICLE 10

AT THE REQUEST OF THE BENEFICIARIES OF THE CONTRACT , THE COMMISSION MAY AGREE TO POSTPONE THE DUE DATES IF COMMERCIAL EXPLOITATION IS DELAYED . SIMILARLY , DURING REPAYMENT , THE COMMISSION MAY DEFER OR CANCEL THE PAYMENTS OUTSTANDING IF THE RESULTS OBTAINED DIFFER SUBSTANTIALLY FROM THOSE ENVISAGED WHEN THE CONTRACT WAS CONCLUDED . WHERE THERE IS DELAY IN REPAYMENT IN CASES OF COMMERCIAL SUCCESS , INTEREST SHALL BE CHARGED FOR LATE REPAYMENT .

ARTICLE 11

IF THE WORK DOES NOT RESULT IN COMMERCIAL EXPLOITATION WITHIN A FIVE-YEAR PERIOD AND IF THE COMMISSION IS SATISFIED WITH THE REASONS SUBMITTED BY THE BENEFICIARIES OF THE CONTRACT , THE LATTER SHALL BE RELEASED FROM THEIR OBLIGATION TO REPAY THE LOAN .

IF , HOWEVER , THE BENEFICIARIES RESUME WORK IN THE SAME FIELD WITHIN SEVEN YEARS OF COMPLETING THE PROJECTS , THEIR REPAYMENT OBLIGATION SHALL ONCE MORE OBTAIN AND THE TERMS SHALL BE NEGOTIATED WITH THE COMMISSION .

ARTICLE 12

IN THE CASE OF FEASIBILITY STUDIES , CONTRACTS SHALL BE CONCLUDED IN THE FORM OF NON-REPAYABLE AID .

THE SAME MAY APPLY IN THE OTHER CASES REFERRED TO IN ARTICLE 5 , WHERE THE INITIATIVE FOR LAUNCHING THE PROJECT IS VESTED IN THE COMMISSION .

ARTICLE 13

THE COMMISSION SHALL SEE TO THE IMPLEMENTATION OF EACH CONTRACT .

THE BENEFICIARIES OF THE CONTRACT SHALL APPOINT A CORRESPONDENT RESPONSIBLE FOR COORDINATING IMPLEMENTATION OF THE CONTRACT ADMINISTRATIVELY AND FOR MAINTAINING CONTRACT WITH THE COMMISSION . WHERE THE MAIN BENEFICIARIES OF THE CONTRACT ARE USERS , CONTRACTS SHALL LAY DOWN THE PROCEDURE BY WHICH THE COMMISSION MAY INFORM ITSELF OF THE PROGRESS OF THE WORK ENTRUSTED TO SUBCONTRACTORS BY THE BENEFICIARIES OF THE CONTRACT .

IF , DURING IMPLEMENTATION OF THE CONTRACT , THE OBJECTIVES AND IMPLEMENTATION PROCEDURE REQUIRE TO BE ALTERED , THE COMMISSION SHALL OBTAIN THE OPINION OF THE COMMITTEE AND INVOKE THE PROCEDURE LAID DOWN IN ARTICLE 8 .

THE BENEFICIARIES OF THE CONTRACT SHALL FORTHWITH COMMUNICATE TO THE COMMISSION IN WRITING ANY IMPORTANT FACT CONCERNING THE EXECUTION OF THE CONTRACT . THEY SHALL PERIODICALLY SUBMIT A REPORT ON THE PROGRESS OF THE PROJECT . THEY SHALL COMPLY WITH ANY REQUEST FOR INFORMATION OR INSPECTION AT THE PREMISES AT WHICH THE CONTRACT IS BEING EXECUTED , IN ACCORDANCE WITH THE PROCEDURE LAID DOWN IN THE CONTRACT .

ARTICLE 14

CONTRACTS MAY BE TERMINATED BY THE COMMISSION IN THE EVENT OF NON-COMPLETION OF ALL OR PART OF THE CONTRACT BY ONE OF THE BENEFICIARIES OF THE CONTRACT OR IF ONE OF THE BENEFICIARIES OF THE CONTRACT HAS , EITHER DELIBERATELY OR THROUGH NEGLIGENCE , PROVIDED INCORRECT INFORMATION WHEN SUBMITTING THE APPLICATION FOR THE CONTRACT OR IF THE PROVISIONS OF THE CONTRACT CONCERNING USE OF THE LOAN , THE PROGRESS OF THE WORK , THE SUBMISSION OF REPORTS AND INSPECTION HAVE NOT BEEN HONOURED BY ONE OF THE BENEFICIARIES OF THE CONTRACT . IN SUCH EVENT , THE BALANCE OF THE SUMS TO BE REPAID SHALL BECOME IMMEDIATELY PAYABLE , WITHOUT PREJUDICE TO ANY CLAIM FOR DAMAGES AND INTEREST WHICH MIGHT BE ENTERED .

IF ONE OF THE BENEFICIARIES OF THE CONTRACT HAS DELIBERATELY PROVIDED INCORRECT INFORMATION WHEN SUBMITTING THE APPLICATION FOR THE CONTRACT OR DURING THE PERIOD OF ITS EXECUTION AND HAS , AS A RESULT , RECEIVED A SUM EXCEEDING THE AMOUNT REQUIRED FOR COMPLETION OF THE WORK , THE COMMISSION MAY ALSO , WITHOUT NECESSARILY EXERCISING ITS RIGHT TO TERMINATE THE CONTRACT , DEMAND REPAYMENT OF THE SUMS WRONGLY COLLECTED , PLUS INTEREST AT CURRENT FINANCIAL MARKET RATES .

ARTICLE 15

THE ADVANTAGES CONFERRED BY THE COMMUNITY SHALL NOT ALTER THE CONDITIONS OF COMPETITION IN A MANNER INCOMPATIBLE WITH THE PERTINENT PROVISIONS OF THE TREATY .

ARTICLE 16

PROPERTY RIGHTS SHALL BE VESTED IN THE BENEFICIARIES OF THE CONTRACT .

THE LATTER SHALL UTILIZE THE RESULTS OF THE CONTRACT TO A SIGNIFICANT EXTENT WITHIN THE COMMUNITY AND UNDER CONDITIONS CONSISTENT WITH THE GENERAL INTEREST . IN THIS CASE AND IF , ONE YEAR AFTER THE COMPLETION OF THE CONTRACT , THE RESULTS OF THE CONTRACT HAVE NOT BEEN UTILIZED , THE COMMISSION MAY REQUIRE THE BENEFICIARIES OF THE CONTRACT TO GRANT LICENCES ON COMMERCIAL TERMS TO PERSONS OR ORGANIZATIONS OF THE COMMUNITY WHO APPLY FOR THEM .

IF COMMUNITY FUNDING TAKES THE FORM OF NON-REPAYABLE GRANTS AND EXCEEDS 80 % OF THE TOTAL COST , THE CONTRACTS SHALL PROVIDE FOR AN OBLIGATION ON THE BENEFICIARIES OF THE CONTRACT TO MAKE AVAILABLE TO THE COMPETENT PERSONS AND UNDERTAKINGS CONCERNED IN THE COMMUNITY THE KNOWLEDGE , WHETHER OR NOT PATENTED , WHICH IS NECESSARY FOR THE INTRODUCTION OF PRODUCTS OR PROCESSES THAT ARE THE SUBJECT OF THE CONTRACTS . THE MAKING AVAILABLE OF SUCH KNOWLEDGE SHALL BE SUBJECT TO CONDITIONS LAID DOWN IN THE CONTRACTS , WHICH SHALL TAKE INTO ACCOUNT THE FINANCIAL AND TECHNICAL CONTRIBUTION MADE BY THE BENEFICIARIES OF THE CONTRACT .

ARTICLE 17

THE APPROPRIATIONS REQUIRED TO FINANCE CONTRACTS SHALL BE ENTERED ANNUALLY IN THE BUDGET OF THE EUROPEAN COMMUNITIES .

REPAYMENTS SHALL BE ENTERED AS REVENUE IN THE BUDGET OF THE EUROPEAN COMMUNITIES IN ACCORDANCE WITH THEIR EXPECTED RATE OF RECEIPT .

ARTICLE 18

IN ACCORDANCE WITH THE FINANCIAL REGULATION , THE COMMISSION SHALL DRAW THE BUDGETARY CONSEQUENCES OF DECISIONS WHICH IT TAKES UNDER THIS REGULATION .

ARTICLE 19

THE COMMISSION SHALL SUBMIT AN ANNUAL REPORT TO THE COUNCIL ON THE IMPLEMENTATION OF THIS REGULATION .

ARTICLE 20

THE CONTRACTS SHALL PROVIDE THAT THE COURT OF JUSTICE OF THE EUROPEAN COMMUNITIES HAS JURISDICTION IN ALL DISPUTES ARISING BETWEEN THE CONTRACTING PARTIES OUT OF THE AFORESAID CONTRACTS .

THIS REGULATION SHALL BE BINDING IN ITS ENTIRETY AND DIRECTLY APPLICABLE IN ALL MEMBER STATES .

DONE AT BRUSSELS , 11 SEPTEMBER 1979 .

FOR THE COUNCIL

THE PRESIDENT

R . MC SHARRY