PROPOSAL FOR AMENDING the financial reference amount - within the meaning of the interinstitutional agreement of 6 May 1999, Article 34(3) - of the sixth framework programme of the european atomic energy community (euratom), in order to take account of enlargement

(presented by the Commission)

EXPLANATORY MEMORANDUM

1. When adapting the financial perspectives for the period 2000-2006 in order to take account of enlargement (the accession of 10 new Member States in May 2004), the European Parliament and the Council agreed the following statement: [The European Parliament and the Council] "agree to revise (by the end of the budgetary procedure for 2004) in accordance with the co-decision procedure, the reference amounts of the co-decided programmes within the limits of the ceiling resulting from the above-mentioned adjustment and revision of the financial perspective".

2. For all the co-decided programmes financed under heading 3 of the financial perspective (Internal Policies), it is therefore necessary to adapt the financial reference amounts included in each of the legislative acts concerned. The Commission, in the general introduction (volume 0) to the Preliminary Draft Budget, proposed new amounts for the reference amounts concerned, seeking a political agreement of the budgetary authority before submitting the corresponding legislative proposal(s).

3. During the conciliation meeting of 16 July 2003, the European Parliament and the Council agreed on the following statement on the procedure to be followed for the adaptation of the financial reference amounts:

"The European Parliament and the Council agree on the following procedure to adapt the reference amounts included in the basic acts of Community programmes decided under the co-decision procedure within the limits of the ceiling resulting from adjustment and revision of the Financial Perspective: Parliament and Council will endeavour to reach a political agreement on the amounts which should be added, following enlargement, to the reference amounts, at the latest on 24 November; they will then invite the Commission to present the appropriate legislative proposal(s); the European Parliament and the Council will thus endeavour to adopt the legislative act(s), under the co-decision procedure, in time for the possible application of the adapted amount as from the date of entry into force of the Accession Treaty."

4. The conciliation meeting of 24 November 2003 concluded on an agreement on adapted reference amounts and on the following joint statement of the European Parliament and of the Council:

"Referring to the joint declaration of 16 July 2003, Parliament and Council, having reached a political agreement on the indicative reference amounts to be included in the basic act of community programmes decided under the co-decision procedure following enlargement, invite the Commission to present without delay the appropriate legislative proposal(s) and confirm that they will make all the efforts to take in due consideration, in the co-decision procedure, the amounts attached to the present declaration, in time for their possible application as from the date of entry into force of the Accession Treaty.

The European Parliament and the Council remind their respective bodies that the legislative procedures should in any circumstances respect the adjustment and revision of the Financial Perspective in view of enlargement as approved on 9 April 2003, and leave a sufficient margin for future programmes, including the ones not based on co-decision."

(amount in EUR million)

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5. The 6th Framework-Programme for Research and Technological Development is covered by two decisions, one based on the Treaty establishing the European Community, the other one based on the Treaty establishing the European Atomic Energy Community. The additional amount of 1 735 million euros is shared between the two basic acts in prorate of their respective financial reference amounts: 1 613 million euros is added to the maximum overall amount of Decision 1513/2002/EC, 122 million euros to the financial reference amount included in Decision 2002/668/Euratom. The amendment of the maximum overall amount of Decision 1513/2002/EC is part of the horizontal proposal covering the programmes for which the basic acts were adopted by the co-decision procedure (COM(2003)777). The present proposal includes the amendment of the financial reference amount of Decision 2002/668/Euratom.

6. The same increase applies, on a proportional basis, to all the activities covered by the 6th framework programme of the European Atomic Energy Community, including the multiannual ceiling for administrative expenditure. The proportion of each of these activities and the indicative breakdown of the financial reference amount, included in Annex II of Decision 2002/668/Euratom, are also updated by this proposal.

2003/0298 (CNS)

Proposal for a COUNCIL DECISION amending Decision No 2002/668/Euratom to adapt the financial reference amount in order to take account of the enlargement of the European Union

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Atomic Energy Community, and in particular Article 7 thereof,

Having regard to the proposal from the Commission, [1]

[1] OJ C [...], [...], p. [...].

Having regard to the opinion of the European Parliament, [2]

[2] OJ C [...], [...], p. [...].

Having regard to the opinion of the Economic and Social Committee, [3]

[3] OJ C [...] , [...], p. [...].

Whereas:

(1) In order to take account of the enlargement of the European Union, the financial reference amount should be adapted in Council Decision No 2002/668/Euratom of 3 June 2002 concerning the sixth framework programme of the European Atomic Energy Community (Euratom) for nuclear research and training activities, also contributing to the creation of the European Research Area (2002 to 2006).

(2) The financial reference amount of the framework programme must be increased and the additional appropriations must be distributed in a linear fashion between the activities of the framework programme; the principle of linearity must also be applied to the implementation of all the activities of the framework programme in compliance with Article 4 of the Decision,

HAS DECIDED AS FOLLOWS:

Sole Article

Decision No 2002/668/Euratom is amended as follows:

1) Article 2(1) is replaced by the following:

"1. The financial reference amount for the implementation of the sixth framework programme for the period 2002 to 2006 shall be EUR 1 352 million. The proportion assigned to each of the activities is fixed in Annex II."

2) Annex II is replaced by the text set out in the Annex to this Decision.

Done at Brussels, [...]

For the Council

The President

[...]

ANNEX

"ANNEX II

MAXIMUM OVERALL AMOUNT, RESPECTIVE SHARES AND INDICATIVE BREAKDOWN

(EUR million)

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LEGISLATIVE FINANCIAL STATEMENT

Policy areas: Research (08) and Direct Research (10).

Title of action:

Proposal for amending the reference amounts contained in decision 2002/668/EURATOM of the council concerning the multiannual framework programme of the european atomic energy community (EURATOM) for nuclear research and training activities also contributing to the creation of the european research area (2002-2006), in order to take account of enlargement.

1. BUDGETARY LINE(S) + HEADING(S) AND OVERALL FIGURES (part B, EUR Mio)

(in EUR million)

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1.1. Compatibility with financial programming and the financial perspective

| | Proposal is compatible with existing financial programming

|X| Proposal will entail reprogramming of the relevant heading in the financial perspective,

| | Proposal may require application of the provisions of the Interinstitutional Agreement.

1.2. Financial impact on revenue

|X| Proposal has no financial implications (involves technical aspects regarding implementation of a measure)

OR

| | Financial impact - The effect on revenue is as follows:

2. BUDGET CHARACTERISTICS

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The legislative financial statement relating to the Euratom 6th framework programme is still valid; this statement is merely an update to take account of enlargement.

The human and administrative resources required for the implementation of this proposal have been taken into account in the Commission's Communication "Activities and Human Resources of the Commission in the Enlarged European Union", [4] and will be covered by the allocations granted to the departments responsible for implementation within the framework of the annual allocation procedure.

[4] COM (2002) 311 final, 5.6.2002.

The multiannual ceiling for administrative expenditure should also be increased proportionally.

Legal basis

Decision 2002/668/Euratom of the Council of 3 June 2002 concerning the sixth framework programme of the European Atomic Energy Community (Euratom) for nuclear research and training activities, also contributing to the creation of the European Research Area (2002-2006) (OJ L 232, 29.8.2002, p.34)

Five-year Assessment of the Community activities carried out under the EURATOM Framework Programme

Programme/activity and budget line(s) concerned:

- Fifth Framework Programme of the European Atomic Energy Community (Euratom) for research and training activities (1998 to 2002),

- Research and training programme (Euratom) in the field of nuclear energy (1998 to 2002) / B6-6511 and B6-6512,

- Specific Programme for research and training to be carried out by the Joint Research Centre by means of direct action for the European Atomic Energy Community (1998-2002) (for information, implemented by the Joint Research Centre),

- Framework programme of Community activities in the field of research and training for the European Atomic Energy Community (1994 to 1998),

- Specific programme of research and training in the field of nuclear fission safety (1994 to 1998) / B6-8111

- Specific programme of research and training in the field of controlled thermonuclear fusion (1994 to 1998) / B6-8121

- Specific programme for research and technological development, including demonstration, to be implemented by the Joint Research Centre for the European Atomic Energy Community (1995-1998), (for information, implemented by the Joint Research centre).

Purpose of evaluation

Assess the implementation and achievements of Community RTD activities carried out during the last five years, as requested in the article 5.1 of the Decisions on the Framework Programmes (1999/64/Euratom). The assessment is planned so that the results can be exploited for the preparation of the next Framework Programmes (FP).

Summary of findings and recommendations

The most important conclusion of the FP Panel is that the Framework Programme alone will not be enough to serve the goals set at Lisbon. Although there is much to commend in past and current Framework Programmes, the challenges we face as we move towards the new economy call not only for the Framework Programme itself to become a much more flexible policy instrument, but also for additional instruments and actions.

RTD policy is inextricably linked with policies in other spheres, especially education and innovation. The Panel is convinced that the required changes need to be conceived within an overall strategy for Europe, articulated at the level of the EU and supported by all the Member States.