COMMISSION OF THE EUROPEAN COMMUNITIES 
COM(95) 52 final 
Brussels, 01.03.1995 
COMMUNICATION FROM THE COMMISSION TO THE COUNCIL 
AND THE EUROPEAN PARLIAMENT 
THE COMMUNITY'S 1995 FINANCIAL CONTRIBUTION TO THE 
INTERNATIONAL ASSOCIATION FOR THE PROMOTION OF 
COOPERATION WITH SCIENTISTS FROM THE 
NEW INDEPENDENT STATES OF THE FORMER SOVIET UNION (INTAS) 
COMMUNICATION FROM THE COMMISSION TO 
THE COUNCIL AND THE EUROPEAN PARLIAMENT 
THE COMMUNITY'S 1995 FINANCIAL CONTRIBUTION TO THE 
INTERNATIONAL ASSOCIATION FOR THE PROMOTION OF 
COOPERATION WITH SCIENTISTS FROM THE 
NEW INDEPENDENT STATES OF THE FORMER SOVIET UNION (INTAS) 
In response to initiatives on the part of various politicians and scientists as well 
as the Commission, the Council of Ministers for Research, at its meeting in 
April 1992, asked the Commission to set up a Foundation with the aim of 
providing financial support for science in the new independent States (NIS) of the 
former Soviet Union. On 3 July 1992, the Commission decided to set up an 
Association which was registered under Belgian private law and officially 
inaugurated following the agreement of the Member States in June 1993. 
The Association was set up for a period of time terminating on 
31 December 1994, on which date, following an evaluation, it would have to be 
decided whether to extend this period. It should be noted that the European 
Parliament has so far not had an opportunity to express its views on INTAS. 
At the meeting of the Council of Ministers for Research on 29 September 1994, 
a decision was adopted to the effect that the Council and the Commission, by 
common agreement, accepted that the pilot phase of INTAS should be extended 
until 31 December 1995 with appropriate funding from the Community on the 
1994 basis and taking account of budgetary constraints. The Commission declared 
its intention to submit to the Council, by the end of 1994, a communication on the 
Community's future participation in INTAS and the improvement of its 
functioning. 
By adopting a specific programme of research and technological development on 
23 November 1994, the Council confirmed the extension of the pilot phase of 
INTAS until 31 December 1995. 
With regard to funding, the work programme of the international cooperation 
programme adopted by the Commission in the light of the Committee's opinion 
provides, for 1995, for ECU 14.64 million for cooperation with Eastern Europe. 
The amount to be set aside from this for INTAS is not indicated in the 
programme. 
By comparison, ECU 117.5 million was available in 1994 outside of the 
framework programme, which at the time did not include international scientific 
cooperation with the countries of Eastern Europe. Of these funds, two thirds have 
been distributed to the Central and Eastern European countries (CEEC) and one 
third to the NIS (including ECU 20 million for INTAS). The intergovernmental 
structure of INTAS included plans for additional funding to be provided by the 
INTAS member countries (the Member States of the European Union and third 
countries), but this has turned out to be very small (about ECU 2.7 million). 
As planned for the end of the pilot phase, an independent evaluation report, drawn 
up by Coopers & Lybrant at the request of the INTAS, was published in 
September 1994. The report puts forward recommendations with regard to the 
strategy, the structure and the management of INTAS. It suggests that activities 
in 1995 be confined to consolidating the previous activities (conclusion of 
contracts and payments) without launching a new call for proposals. 
In order to examine the merits of Community funding and in view of the underuse 
made of the appropriations available, the Commission instructed Ernst & Young 
to carry out a financial audit. The draft report has now been published and it 
appears that, of the 509 projects adopted for funding from the 1993 call, thirteen 
months later only three have led to contracts which have been duly signed. No 
contracts had been signed by the date of the audit for the call which closed on 8 
April 1994. It was found that, in December 1994, of the ECU 46 million 
committed by INTAS, only ECU 4.4 million had been received by the Western 
coordinators and 50% of the amount had been paid to the NIS scientists (see 
Annex 1). This is due to the large number of small and often short contracts given 
to scientists in the NIS. In actual fact, INTAS has not laid down any priorities, 
which means that the funds were spread over all of the areas of science and 
technology (Annex 2). Lastly, there can be no doubt that the problem of 
transferring the funds to the scientists slowed down the start up of the activities. 
In view of the questions concerning the effectiveness and the method of operation 
of INTAS as compared with its initial aims and pending the audit, Mr Ruberti on 
27 December 1994 sent the Member States a letter in which he said that the 
Commission would be submitting a communication on the future of INTAS. The 
part played by INTAS needs to be reviewed in the context of Community policy 
on the Central and Eastern European countries and the new independent States. 
The present question therefore now concerns the amount of funding to be 
allocated to INTAS in 1995, the last year of the pilot phase. This funding can 
only come from the ECU 14.64 million available within the A2 field of the 
international cooperation programme. 
It should also be borne in mind that the funds given to INTAS will reduce the 
funds allocated to the Central and Eastern European countries at a time when a 
special effort has to be made to facilitate the incorporation into Community 
programmes of participants from these countries (in particular countries which are 
associated with them or with which association agreements are being concluded). 
Furthermore, the percentage allocated to the Central and Eastern European 
countries will send an important political signal to the meeting with the Ministers 
of Research from the Central and Eastern European countries agreed at the Essen 
European Summit and scheduled for 9 June 1995. Lastly, the funds allocated to 
INTAS (which were initially earmarked for basic research) mean that it will not 
be possible, as might have otherwise been the case, to develop large-scale projects 
on the environment and industrial safety. 
For 1995, taking account of the fact that the budget is limited to a total of 
ECU 14.64 million for the Central and Eastern European countries and the NIS, 
the Commission representative has informed the Programme Committee that it 
plans to allocate ECU 2.5 million for INTAS in 1995. 
A majority of the members of the Committee for the Programme on International 
Cooperation expressed the wish that the Commission allocate at least ECU 
12 million to INTAS in 1995. 
The Commission implements the budget on its own responsibility and within the 
limits of the appropriations allocated. However, in order to comply with the 
requests made by the Member States and in view of the political importance 
attached to INTAS to assist NIS scientists, the Commission has decided to 
allocate support totalling ECU 5 million to INTAS. However, this amount will 
only be committed if the percentage of signed contracts concerning the 
recommended projects will reach, at the latest on 1.9.95, a minimum of 50 % for 
the calls for proposals 1993 and of 25 % for the 1994 call. To this amount of 5 
MECU, the amount of 3 MECU, which is still available, will be added. Up until 
the present, this amount has not yet been committed, as it shows the audit from 
Ernst & Young. 
INTAS will provide the Commission with a quarterly progress report on the 
implementation of its calls for proposals, starting from 31.3.95. 
For 1995, INTAS would therefore have funds amounting to ECU 8 million from 
the Community budget plus the contributions from other INTAS members. Under 
the budget heading for international scientific cooperation, ECU 9.6 million will 
be available for the Central and Eastern European countries. This breakdown 
constitutes a balanced solution. 
4. The advisability of continuing with INTAS beyond 1995 will be the subject of a 
communication which the Commission will submit to the next Council meeting 
and to the European Parliament in the framework of an overall analysis of 
scientific and technical cooperation with the Central and Eastern European 
countries and NIS. 
ANNEX I TO THE COMN1UN1CATION 
Extract from the audit by Ernst & Young 
PROGRESS MADE ON ONGOING PROJECTS AS AT 30 NOVEMBER 1994 
Number of proposals received 
Closure of call for proposals 
Number of projects recommended 
Date of approval by Scientific Council 
Financial support granted (in ECU) 
Total payments made 
Number of projects in receipt of 
funding (advance) 
Number of fundings in receipt of the 
complete funding 
Number of "Contract Negotiation 
Forms" received 
Number of contracts sent to contractors 
for signature 
Number of contracts signed 
Number of projects returning a final 
report 
Number of projects fully completed 92 call 93 call 94 call 
N/A 3 395 4 704 
N/A 15/10/93 5/04/94 
51 509 459 
29/06/93 14/11/93 02/07/94 
4 480 103 21 034 300 20 834 200 
2 312 125 2 137 160 0 
49 273 0 
0 0 0 
all 405 40 
all 51 0 
49 3 0 
2 0 0 
0 0 0 
The status of the ongoing projects depends on the duration of the projects and the phasing 
of the payments, which vary for the three calls launched by INTAS: 
a. The 51 recommended projects from the 1992 call have a duration of three years. 
The phasing of the payments varies according to the project requirements. As a 
general rule, an advance of 40 to 75% is paid on receipt of the signed contract. 
The balance is paid at the end of the project. At the end of November 1994, 49 
signed contracts had been received. The last two contracts were received in 
December 1994. INTAS has received a final report for two of the projects, which 
are now being analyzed by the national experts seconded to INTAS. 
b. The 509 projects from the 1993 call have a duration of one year. An advance of 
20% up to a maximum of ECU 10 000 is paid on receipt of the "Contract 
Negotiation Form" and the "Declaration of Advanced Payment" signed by the 
project coordinator and all of the Russian contractors. A further amount of 70% 
is paid when the contract is signed and the remaining 10% is paid at the end of 
the project. At the end of November 1994, only 51 contracts had been sent to the 
contractors for signature, of which three have been returned signed. The first 
advances were paid in July 1994, eight months after the date of approval of the 
projects by the Scientific Council. 
c. The 459 projects from the 1994 call have a duration of three years. At the end 
of November 1994, none had received an advance. However, the first advances 
were paid in December 1994. 
ANNEX 2 
Structure of INTAS and selection of projects 
INTAS is an international non-profit-making association the purpose of which is to 
promote cooperation with scientists in the NIS. 
The aims of INTAS include the conservation of scientific potential, the promotion of 
scientific research in the NIS as a key factor in social and economic progress and the 
consolidation of democracy in these countries together with scientific cooperation between 
scientists from these countries and the international community. 
The rules governing INTAS allow various ways and means of achieving these aims, 
including research" projects, grants, seminars and scientific networks. 
The INTAS bodies are the General Assembly, the Secretariat and the Scientific Council. 
The Assembly consists of two representatives for each member and its decisions are 
normally taken by a two-thirds majority. Decisions concerning budgetary matters, the 
final selection of projects and their funding are taken by the General Assembly. The 
admittance of new members requires unanimity. Budgetary matters, the dissolution or 
continuation of the Association and amendments to its rules are decided by a majority of 
two-thirds of the votes and require unanimity between the founder members. Since 
INTAS was set up in mid-1993, the Assembly has held eight meetings, although the 
minimum required by the rules is only two meetings a year. 
The Scientific Council consists of a maximum of 30 members, these being scientists from 
the member countries, the Member States and the NIS appointed by the General 
Assembly. It has met five times. 
After selecting 54 projects on the basis of a restricted call for proposals prior to the 
official launching of the Association, INTAS put out two calls for proposals in 1993 and 
1994. 
The breakdown of the projects selected is as follows: 
Scientific field Number of Budget 
selected projects (ECU million) 
Physics, Astronomy, Astrophysics 214 8 394 
Mathematics, Telecommunications, 78 3 740 
Information Technologies 
Chemistry 82 4 530 
Life Sciences 181 6 772 
Earth Sciences, Environment, Energy 148 7 940 
Engineering Sciences, Aeronautics, 136 5 530 
Space 
Economics, Social, Human Sciences 86 4 058 
Total (ECU million) 925 40 964 
The average funding for each project is ECU 44 000. 
FINANCIAL STATEMENT 
1. TITLE OF OPERATION 
Financial contribution from the Community to the budget of the International Association 
for the Promotion of Cooperation with Scientists from the New Independent States of the 
former Soviet Union (INTAS). 
2. BUDGET HEADING INVOLVED 
B6-7211 
International scientific cooperation. 
3. LEGAL BASIS 
Council Decision 94/807/EC of 23 November 1994. 
4 DESCRIPTION OF OPERATION 
4.1 General objective 
To contribute, via INTAS, to promoting scientific and technological cooperation with the 
new independent States of the former Soviet Union, with a view, in particular, to 
stabilizing the RTD potential and providing support for scientists in these countries. 
4.2 Fields covered 
Scientific and technological research activities, particularly with a view to stabilizing the 
RTD potential, as provided for in the work programme on international cooperation. The 
fields covered are set out in Annex 2 to the attached communication to the Council. 
4.3 OPeriod covered 
1995. 
5 CLASSIFICATION OF EXPENDITURE OR REVENUE 
Non-compulsory expenditure. Differentiated appropriations. 
6 TYPE OF EXPENDITURE OR REVENUE 
This financial contribution to the budget of INTAS will go towards scientific and 
technological cooperation projects between INTAS members and the new independent 
\ 
States of the former Soviet Union and towards the Association's operating costs. The 
other members of INTAS will bear a share of the funding. 
7. FINANCIAL IMPACT 
7.1 Method of calculating total cost of operation 
1992 
1993 
1994 
1995 ECU 4 million 
ECU 22 million 
ECU 20 million 
ECU 5 million (the amount requested here) 
7.2 Itemized breakdown of cost 
The operation covers the operating costs and, possibly, a new call for proposals for the 
scientific fields selected by the INTAS General Assembly, with the agreement of the 
Association's Scientific Committee. The table set out below shows the breakdown 
between the fields chosen for the last two calls for proposals. 
Scientific field Number of Budget 
proposals selected (in ECU million) 
Physics, Astronomy, Astrophysics 105 4.109 
Mathematics, Telecommunication, 39 1.870 
Information Technologies 
Chemistry 41 2.265 
Life Sciences 89 3.322 
Earth Sciences, Environment, Energy 74 3.970 
Engineering Sciences, Aeronautics, 68 2.765 
Space 
Economics, Social, Human Sciences 43 2.029 
Total 459 20.330 
A* 
7.3 Indicative schedule of appropriations (in ECU million) 
commitment 
appropriations 
payment 
appropriations 1995 
5 
0 1996 
pm 
5 1997 
pm 
pm 1998 
pm 
pm 
Payments and commitments made by 30 November 1994 (in ECU million) 
RESOURCES 
i COMMITMENTS 
Commission 
Member States + EFTA 
Interest on deposits 
Total committed 
Commitments by INTAS: 
to projects 
to administrative expenditure 
Net balance of commitment 
appropriations 1992/93 
26 
25.5 
0 1994 
20 
0.5 
20.8 
1.8 TOTAL 
46 
4.6 
QA 
51.1 
46.3 
1.8 
3.1 
RESOURCES 
USE PAYMENTS1 
Commission 
Member States + EFTA 
Interest on deposits 
Total for payments 
Payments by INTAS: 
to projects 
to administrative expenditure 
Net INTAS cash balance 1992/93 
0 
1.2 
2.3 
2 1994 
18.6 
1.9 
0.5 
2.1.1 
.8 TOTAL 
18.6 
3.1 
05 
22.2 
4.4 
1.8 
16 
Charged to the year of payment by INTAS. 
Borne directly by the Commission in 1993. 
M 
8 ANTI-FRAUD MEASURES 
The General Assembly, on which the Commission and the Member States are represented, 
approves the budget for INTAS, which is decided by a two-thirds majority. Article 9(3) 
of the articles of association lay down the statutory fraud prevention obligations. 
Contracts signed between INTAS and beneficiaries must include the fraud prevention 
measures provided for by the financial regulations applicable in similar cases. 
9 ELEMENTS OF COST-EFFECTIVENESS ANALYSIS 
9.1 Specific objectives and target population 
The objective of the contribution to INTAS is to help to promote cooperation with the 
new independent States of the former Soviet Union in the field of research and 
technological development and, in particular, to stabilize the RTD potential in the 
countries concerned. 
9.2 Grounds for the operation 
The pilot phase, limited to 1995, fits into the framework for international cooperation in 
the field of research (Article 130i of the Treaty) with the objective of safeguarding the 
RTD potential, as provided for in the work programme. The majority of the 
Member States on the Programming Committee recommended allocating ECU 12 million 
to INTAS in 1995. Since a limit of ECU 14.64 million has been set for the Central and 
East European countries and the new independent States in 1995, the proposal is to grant 
ECU 5 million to INTAS. However, this commitment will not take effect until 
examination of the progress report and confirmation that contracts have been signed for 
a minimum of 50% of the projects selected from the 1993 call for proposals and 25% 
from the 1994 call. 
9.3 Monitoring and evaluation of the operation 
The activities of INTAS are evaluated regularly by the Association's General Assembly 
and its Scientific Committee. Coopers & Lybrand produced an evaluation report. In 
addition, the Commission has ordered a financial audit from Ernst & Young, which has 
yet to finalize its report. It will also be able to encourage inspections and checks. The 
Commission will submit a comprehensive analysis of the activities of INTAS in a 
communication to be submitted to the Council in June 1995. The objective of this 
communication is, therefore, to respond to the concern to consolidate the first two calls 
for proposals. The minimum percentages set (contracts signed on at least 50% of the 
proposals selected in 1993 and 25% in 1994) are the yardstick for this consolidation of 
the previous calls for proposals and, therefore, the sine qua non for the financial 
contribution of ECU 5 million from the Commission for the next call for proposals. 
/?v 
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COM(95) 52 final 
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