Amended proposal for a COUNCIL DECISION adopting a specific programme (Euratom) for research and training on nuclear energy (2002-2006) (presented by the Commission pursuant to Article 250 (2) of the EC Treaty)

EXPLANATORY MEMORANDUM

The Commission adopted its proposals for the sixth framework programme (EC and Euratom) [1] for research and technology development, on 21 February 2001, and for the specific programmes to implement the sixth framework programme [2], on 30 May 2001. These proposals have been designed with the objective of contributing to the creation of the European Research Area.

[1] COM(2001)94

[2] COM(2001)279

A key stage in the process of negotiation on the framework programme Decisions has now been accomplished, with the first reading of the European Parliament (14 November 2001) and the adoption of a common position by Council (28 January 2002).

The positions expressed by Parliament and Council on the new framework programme demonstrate a high degree of convergence, with broadly similar positions expressed on the overall budget and its breakdown, programme structure, scientific and technological priorities, and means of implementation.

For its part, the Commission has worked to encourage the process of convergence, in particular by modifying its framework programme proposals to take up a significant proportion of Parliament's amendments [3]. It notes with satisfaction the substantial consensus on the underlying principles of the new framework programme that has been achieved through the efforts of Council and Parliament, in particular with respect to the priority to be given to the use of powerful new instruments, the strong focus of the thematic priorities, and the introduction of greater flexibility in the implementation of the programme.

[3] COM(2001)709

A sufficiently stable basis now exists for the Commission to come forward with amended proposals for the specific programmes. These take up the changes in the framework programme resulting from the first reading, and set out their detailed implications as regards the research to be conducted and its means of implementation. The objective is to assist the other institutions in their examination of the specific programmes, and their further negotiations, with the aim of reaching early agreement on the framework programme, rules of participation and specific programmes.

The most extensive adjustments to the Commission's earlier proposals are to be found in the programme "Integrating and strengthening the European Research Area", including the following:

- Adaptations to the structure and detailed research content of thematic priority 1 (to reflect its organisation in two sections, respectively on advanced genomics and its applications to health, and on combating major diseases) and thematic priority 6 (to reflect its organisation in three parts, respectively on sustainable energy systems, sustainable surface transport, and global change and ecosystems). More limited, but in some cases nevertheless substantial, amendments have been introduced in to the research content of other priority thematic areas.

- Adjustments to the initial policy-orientated research priorities under the heading "supporting policies and anticipating scientific and technological needs", along with some re-attribution of research activities in relation to the thematic priorities (notably as regards agriculture and marine ecosystem research). These take account of the modifications to content and the significant reduction in budget introduced following the first reading.

- The description of the instruments (Annex III) has been refined and clarified, in the light of the debate leading up to the first reading. This reflects the principle of a smooth transition from "traditional" to "new" instruments in the implementation of the thematic priority areas, and the idea of a fourth instrument, in the spirit of the "escalier d'excellence".

In implementing this specific programme, the Commission proposes to be assisted by a committee of Member States' representatives. The committee shall meet in different configurations, as appropriate, corresponding to the thematic priority areas of research.

The modifications introduced in the programme "Structuring the European research area" relate mainly to the mobility and infrastructure actions, where additional detail and clarity has been introduced in the mechanisms and instruments to be adopted, while also taking account of the more limited budget attributed to these actions. As regards the Euratom programme on "Nuclear energy", the main changes relate to the fission part, with the introduction of a new thematic priority on radiation protection and activities on the safety of nuclear installations. In both these programmes, the descriptions of the instruments (Annex III) have been substantially updated, in line with the programme "Integrating and strengthening the European Research Area".

In all cases, the budgetary allocations have been revised in conformity with the common position of the Council.

2001/0125 (CNS)

Amended proposal for a COUNCIL DECISION adopting a specific programme (Euratom) for research and training on nuclear energy (2002-2006)

THE COUNCIL OF THE EUROPEAN UNION,

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

Having regard to the proposal from the Commission [4]

[4] OJ

Having regard to the opinion of the European Parliament [5]

[5] OJ

Having regard to the opinion of the Economic and Social Committee [6]

[6] OJ

Whereas:

(1) By Decision No. .../../Euratom [7] the Council adopted the sixth multiannual framework programme 2002-2006 of the European Atomic Energy Community for research and training activities aimed at contributing towards the creation of the European Research Area (hereinafter referred to as "the framework programme") to be implemented by means of research and training programme(s) drawn up in accordance with Article 7 of the Treaty, which define the detailed rules for their implementation, fix their duration and provide for the means deemed necessary.

[7] OJ

(2) The rules for the participation of undertakings, research centres and universities for the implementation of the framework programme, adopted by the Council in Decision No. .../../Euratom [8] (hereinafter referred to as "the rules for participation") should apply to this programme.

[8] OJ

(3) The Commission's administrative expenditure for the implementation of this programme reflects the high number of staff seconded to laboratories in the members States and to the ITER project.

(4) This programme is open to the participation of countries having concluded the necessary agreements to this effect, and is also, except in the case of fusion research, open on the project level, and on the basis of mutual benefit, to the participation of entities from third countries and of international organisations for scientific co-operation.

(5) In implementing this programme, emphasis should be given to promoting mobility of researchers, and innovation, in the Community as well as international co-operation activities with third countries and international organisations. Special attention should be paid to the candidate countries.

(6) Research activities carried out within this programme should respect fundamental ethical principles, including those reflected in Article 6 of the Treaty on the European Union and in the Charter of Fundamental Rights of the European Union, as well as the need to take into account public acceptability of these activities.

(7) Following the Commission Communication "Women and Science" [9] and the Resolution of the Council [10] and the European Parliament [11] on this theme, an action plan is being implemented in order to reinforce and increase the place and role of women in science and research, which should ensure the respect of equality of opportunity, irrespective of gender.

[9] COM (1999) 76

[10] Resolution of 20 May 1999, OJ C 201, 16.7.1999

[11] Resolution of 3 February 2000, PE 284.656

(8) This programme should be implemented in a flexible, efficient and transparent manner, taking account of relevant interests, in particular of the scientific, industrial, user and policy communities. The research activities carried out under it should be adapted where appropriate to the needs of Community policies and to scientific and technological developments.

(9) Participation in the activities of this programme will be encouraged through publication of the necessary information on content, conditions and procedures, to be made available in a timely and thorough manner to potential participants, including those from the associated candidate countries and other associated countries.

(10) The Commission will in due course arrange for an independent assessment to be conducted concerning the activities carried out in the fields covered by this programme, which will be done in a spirit of openness with respect to all the relevant actors.

(11) The Scientific and Technical Committee has been consulted.

HAS ADOPTED THIS DECISION

Article 1

1. In accordance with the sixth framework programme, a specific programme for research and training on nuclear energy (hereinafter referred to as "the specific programme") is hereby adopted for the period from [.....] to 31 December 2006.

2. The objectives and scientific and technological priorities for the specific programme are set out in Annex I.

Article 2

In accordance with Annex II to the framework programme, the amount deemed necessary for the execution of the specific programme is EUR 940 million, including a maximum of 16.5% for the Commission's administrative expenditure. An indicative breakdown of this amount is given in Annex II to this decision.

Article 3

All research activities carried out under the specific programme shall be carried out in compliance with fundamental ethical principles.

Article 4

1. The detailed rules for financial participation by the Community in the specific programme shall be those referred to in Article 2, (2) of the framework programme.

2. The specific programme shall be implemented by means of instruments defined in Annex III.

3. The rules for participation shall apply to the specific programme.

Article 5

1. The Commission shall draw up a work programme for the implementation of the specific programme, setting out in greater detail the objectives and scientific and technological priorities set out in Annex I, including the instruments to be used on a priority basis, and the timetable for implementation.

2. The work programme shall take account of relevant research activities carried out by the Member States, Associated States, European and international organisations. It shall be updated where appropriate, including in relation to the use of instruments on a priority basis.

Article 6

1. The Commission shall be responsible for the implementation of the specific programme.

2. For the purposes of implementing the specific programme the Commission shall be assisted by a consultative committee. The members of this committee can vary according to the different subjects on the committee's agenda. For fission-related aspects, the composition of this committee and the detailed operational rules and procedures applicable to it shall be as laid down in Council Decision 84/338/Euratom, ECSC, EEC [12] dealing with management and co-ordination advisory committees. For the fusion-related aspects they shall be as laid down in the Council Decision of 16 December 1980 dealing with the consultative committee for the fusion programme.

[12] OJ L 177, 4.7.1984, p.25.

Article 7

1. The Commission shall regularly report on the overall progress of the implementation of the specific programme, in accordance with Article 5(2) of the framework programme, information on financial aspects shall be included.

2. The Commission shall arrange for the independent monitoring and assessment provided for in Articles 5 and 6 of the framework programme to be conducted concerning the activities carried out in the fields covered by the specific programme.

Article 8

This decision is addressed to the Member States.

Done at Brussels,

For the Council

The President

ANNEX I

Scientific and technological objectives and broad lines of the activities

1. Introduction

As the source of 35% of the electricity produced in the European Union, nuclear energy is an element of the debate on how to combat climate change and reduce the energy dependency of the EU. But significant challenges need to be faced. Controlled thermonuclear fusion is one of the long term options for energy supply, in particular for the centralised supply of base-load electricity. The priority is to make progress towards demonstrating the scientific and technological feasibility of fusion energy and assessing its sustainable qualities. In the short term, ways of dealing with nuclear waste that are acceptable to society need to be found, and more particularly the implementation of technical solutions for the management of long-lived waste. Innovative concepts for the safer exploitation of nuclear fission should also be studied as possible contributions to meeting European energy needs in the decades ahead. The high standards of radiation protection in the Community must be maintained through focused and co-ordinated research, in particular into the effects of low levels of exposure.

Co-operation at European level, including the exchange of scientists and common research programmes, is already well established in this field. In respect of nuclear waste, radiation protection and other activities, this will be intensified and deepened at programme and project level in order to make better use of resources (both human resources and experimental facilities) and promote a common European view on key problems and approaches, in accordance with the needs of the European research area. Links will be established with national programmes and networking will be promoted with third countries, in particular, USA, the Newly Independent States of the Former Soviet Union (NIS), Canada and Japan. In the case of fusion, the Community , the Member States and Countries Associated with the activities covered by the Euratom Framework Programme will continue to work within the framework of an integrated programme of activities.

Co-ordination will be assured with the JRC programme on "nuclear safety and safeguards".

2. Priority thematic areas

2.1 Fusion energy research

Objectives

Fusion energy could contribute in the second half of the century to the emission-free large-scale production of base-load electricity. The advances made in fusion energy research justify to further pursue a vigorous effort towards the long-term objective of a fusion power plant. Theoretical work and experimental studies on the existing devices world-wide, in particular on JET, have established the scientific and technical readiness for the construction of a project of the next generation after JET with the objective of demonstrating the scientific and technological feasibility of fusion energy. World wide collaboration on fusion energy research has progressed to the detailed engineering design of such a Next Step device, ITER, with the objectives of extended burn in inductive operation with power amplification Q >10, demonstrating generation of 400 MW of fusion power over about 400 seconds, that could allow burning plasmas to be studied in conditions relevant to energy production.

The successful completion of the ITER Engineering Design Activities makes it possible, in line with the reactor orientation of the Community activities on fusion energy research, to take a decision about the realisation of the Next Step. Subject to a positive outcome of the international negotiations on the juridical and institutional conditions of the establishment of an ITER Legal Entity and negotiations for its joint implementation (construction, operation, exploitation and decommissioning), a specific decision could be sought in the period 2003-2004, so that construction could effectively start during the period 2005-2006. The period 2003-2006 has therefore to be seen as a transition period marked by the need to rationalise European activities due to the strong orientation of the programme towards the Next Step. The budgetary proposition for research in the field of fusion energy over the period 2003-2006 provides that out of a total appropriation of 750 MioEUR, up to a maximum of 200 MioEUR is foreseen for the realisation of ITER.

If and when decided, the realisation of the Next Step will mobilise significant human and financial resources. Once a decision is taken to go ahead with the project, adaptations to the current efforts of the European partners of Euratom in the field of fusion and organisational changes will be required, in particular to jointly steer the European contribution to ITER. The amount of 550 MioEUR is proposed to allow the continuation of a meaningful R&D programme, including the transition between the activities currently carried out in the framework of the Associations [13] and JET, and what would become the "accompanying programme" in physics and technology for fusion once construction of the Next Step/ITER device has reached its steady state after 2006.

[13] Established under contracts of associations between the Community and entities in the Members States.

Priorities

i) Associations' programme in physics and technology

The Associations' programme will include:

- R&D in fusion physics and plasma engineering, focusing on the study and evaluation of magnetic confinement formulas, with in particular the continuation of the construction of the Wendelstein 7-X "stellarator" and operation of the existing installations in the Euratom Associations.

- Structured R&D activities in fusion technology in particular research on fusion materials and participation in the R&D activities for the decommissioning of JET, which is foreseen at the end of its operations

- Investigations of socio-economic aspects, focusing on evaluation of economic costs and social acceptability of fusion energy, in complement to the further studies on safety and environmental aspects; co-ordination, in the context of a keep-in-touch activity, of the Member States' civil research activities on inertial confinement and possible alternative concepts; dissemination of results and the diffusion of information to the public; mobility and training.

In contributing to the Associations' programme, priority will be given to multilateral actions to focalise activities on common projects such as those directly related to operation on JET and to the Next Step / ITER and/or staff training. Depending on a decision on the realisation of ITER and its timing, the current Community support to the Associations activities will be adjusted, and the phasing out of the exploitation of a number of facilities will be considered. Adequate means shall be ensured to maintain a strong European co-ordination of the fusion activities, which has demonstrated its usefulness over the years.

The extent of the accompanying domestic programme in fusion physics and technology which is required in the Associations and European industry to take full benefit from ITER, will depend (a) on the level of the European share in ITER and (b) on where would be sited. This could entail investments aiming at maintaining experimentation on fusion devices at world-class level in Europe beyond the start of operation of ITER and an adequate programme of technological development.

ii) Exploitation of the JET facilities

The JET facilities will continue to be exploited in the framework of the European Fusion Development Agreement (EFDA), in view of completing the exploitation of the performance enhancements currently under way. The use of the JET facilities will have to be suspended at an appropriate time to enable the corresponding resources to be redirected to the Next Step / ITER.

iii) Next Step / ITER

The Proposal for the Euratom framework programme (2002-2006) includes the continuation of Next Step activities with a view to participate in its construction in the second half of the period. However, since decisions on ITER do not depend only upon EU Institutions but also on the EU international partners, the proposed programme of activities must be open regarding the eventual siting and framework of the Next Step / ITER and the precise content of the accompanying domestic programme. The studies performed in preparation of possible European site(s) will be completed.

The EU participation in ITER would include contributions to the construction of equipment and installations, which are within the perimeter of the ITER site and necessary for its exploitation, as well as to the costs associated with the staffing and management of, and the support to be given to, the project during construction. The level and nature of this participation will depend on the outcome of the negotiations with the EU international partners, and in turn on the location of the ITER site. If ITER was located in Europe, the EU participation would also include contribution to the costs to be borne by Europe as a Host Party.

2.2 Management of radioactive waste

Objectives

The absence of a broadly agreed approach to waste management and disposal is one of the main impediments to the continued and future use of nuclear energy. In particular, this applies to the disposal of long-lived waste components in geological repositories, which will be required no matter what treatment method is chosen for the spent fuel and high level waste. Research alone cannot ensure societal acceptance; however, it is needed in order to develop and test the repository technologies, investigate suitable sites, promote basic scientific understanding relating to safety and safety assessment methods, and to develop decision processes that are perceived as fair and equitable by the stakeholders involved.

Research is also needed to explore the technical and economic potential of concepts for nuclear energy generation able tomake better use of fissile material and generate less waste and of partitioning and transmutation to reduce the hazard of the waste on an industrial scale.

Research Priorities

i) Research on geological disposal

The aims are to establish a sound technical basis for demonstrating the safety of disposing spent fuel and long lived radioactive wastes in geological formations and underpin the development of a common European view on the main issues related to the disposal of waste.

- Improvement of fundamental knowledge, developing and testing technologies: research will focus on key physical, chemical and biological processes; interaction between the different natural and engineered barriers, their long-term stability and means of implementing disposal technologies in underground research laboratories.

- New and improved tools: research will focus on models for performance and safety assessment, and methodologies to demonstrate long term safety, including sensitivity and uncertainty analyses, and development and evaluation of alternative measures of performance .

ii) Partitioning and transmutation and other concepts to produce less waste in nuclear energy generation

The aims are to determine practical ways of reducing the amount and/or hazard of the waste to be disposed of by partitioning and transmutation and to explore the potential of concepts for nuclear energy to produce less waste.

- Partitioning and transmutation: research will focus on fundamental assessments of the overall concept; demonstration at pilot scale of the most promising partitioning technologies; further development of technologies for transmutation; and evaluation of their industrial practicability.

- Concepts to produce less waste: research will focus on exploring the potential for the more efficient use of fissile material in existing reactors and of other concepts to produce less waste in nuclear energy generation. ) .

2.3 Radiation protection

Objectives

Radiation is used extensively in medicine and industry (including the generation of nuclear energy) and its safety is predicated on a sound radiation protection policy and its effective implementation. Community research underpins European policy and has contributed to the high levels of protection achieved in practice. These standards must be maintained and, in some cases, improved and research has a key role in this process. The main objective is to resolve uncertainties in the risk from exposures to radiation at low and protracted doses (ie, at levels typically encountered by the population and in workplaces) which remains a controversial scientific and policy issue, and has important implications for the use of radiation in both medicine and industry. Community research in other areas will focus on making better use of national efforts, principally through their more effective integration by networking and targeted research where this would either be complementary to, or provide synergy with, national programmes.

Research priorities:

- Quantification of risks associated with low and protracted exposures: research will focus on epidemiological studies of suitable exposed populations, complemented by cellular and molecular biology research on the interaction between radiation and the DNA, cells, organs and the body.

- Medical exposures and natural sources of radiation: enhancing the safety and efficacy of medical uses of radiation; better assessment and management of natural sources, in particular, naturally occurring radioactive materials.

- Protection of the environment and radioecology: conceptual and methodological basis for protection of the environment; better assessment and management of the impact of natural and artificial sources of radiation on man and the environment.

- Risk and emergency management: better approaches for risk governance; more effective and coherent emergency management in Europe, including rehabilitation of contaminated areas.

- Protection of the workplace: improved monitoring and management of occupational exposures in industries involving exposure to radiation.

3. Other activities in the field of nuclear technologies and safety

Objectives

The objectives are to support EU policies in the fields of health, energy and the environment, to ensure that European capability is maintained at a high level in relevant fields not covered by the thematic priorities and to contribute towards the creation of the European Research Area.

Research priorities

i) Innovative concepts

The aims are to evaluate innovative concepts and develop improved and safer processes in the field of nuclear energy. Research will focus on:

- Evaluation of innovative concepts and development of improved and safer processes for the generation and exploitation of nuclear energy that have been identified as offering longer term benefits in terms of , cost, safety, environmental impact, resource utilisation, proliferation resistance, or diversity of application. .

ii) Education and training

The aim is to better integrate European education and training in nuclear safety and radiation protection to combat the decline in both student numbers and teaching establishments, thus providing the necessary competence and expertise for the continued safe use of nuclear energy and other uses of radiation in industry and medicine. Support will focus on:

- development of a more harmonised approach for education in the nuclear sciences and engineering in Europe and its implementation, including and the better integration of national resources and capabilities.

This will be complemented by support for fellowships, special training courses, training networks, grants for young research workers from the NIS and CEE countries, and transnational access to infrastructure .

(iii) Safety of existing nuclear installations

The aim is to improve safety in existing nuclear installations in Member States and candidate countries during their remaining operational lifetimes and subsequent decommissioning, making use of the considerable knowledge and experience gained internationally from experimental and theoretical research. Research will focus on:

- plant management including effects of ageing and fuel performance; severe accident management, in particular the development of advanced numerical simulation codes; integration of European capabilities and knowledge from practical decommissioning; developing harmonised approaches to safety and best practice, both operational and regulatory, at a European level.

ANNEX II INDICATIVE BREAKDOWN OF THE AMOUNT

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ANNEX III MEANS FOR IMPLEMENTING THE PROGRAMME

In order to implement the specific programme, and in accordance with the Decisions of the European Parliament and of the Council concerning the multiannual Framework Programme 2002-2006 of the European Atomic Energy Community for research and training activities aimed at contributing towards the creation of the European Research Area (2002/.../Euratom) and with the rules for the participation of undertakings, research centres and universities for the implementation of the framework programme (2002/.../Euratom), the Commission will use various instruments.

The Commission will evaluate the proposals in accordance with the evaluation criteria set out in the above mentioned Decisions.*

As regards the thematic priority areas, management of radioactive waste and radiation protection, the importance of the new instruments (Integrated Projects and Networks of Excellence) is recognised as being an overall priority means to attain the objectives of critical mass, management simplification and European added value contributed by Community research in relation to what is already undertaken at national level, and of the integration of the research capacities. However, the size of projects is not a criterion for exclusion, and access to new instruments is ensured for SMEs and other small entities.

The new instruments will be used from the start of the Sixth Framework Programme in each theme and, where deemed appropriate, as a priority means, while maintaining the use of specific targeted projects and coordination actions.

The indirect RTD actions implemented in the area of thermonuclear fusion and in the framework of contracts, agreements or legal entities to which the Community is a party or of which it is a member, conform to the rules which have been established for them, in conformity with the Decision on the rules of participation [14]

[14] ............

In carrying out the programme, the Commission may have recourse to technical assistance.

In 2004 an evaluation will be undertaken by independent experts of the efficiency of each of these two types of instruments in the execution of the Sixth Framework Programme.

A. New instruments

A.1 Networks of excellence

The purpose of networks of excellence is to strengthen and develop Community scientific and technological excellence by means of the integration, at European level, of research and training capacities currently existing or emerging at both national and regional level. Each network will also aim at advancing knowledge in a particular area by assembling a critical mass of expertise. They will foster cooperation between capacities of excellence in universities, research centres, enterprises, including SMEs, and science and technology organisations. The activities concerned will be generally targeted towards long-term, multidisciplinary objectives, rather than predefined results in terms of products, processes or services.

A network of excellence will be implemented by a joint programme of activities involving some or, where appropriate, all of the research and training capacities and activities of the participants in the relevant area to attain a critical mass of expertise and European added value. A joint programme of activities could aim at the creation of a self-standing virtual centre of excellence that may result in developing the necessary means for achieving a durable integration of the research and training capacities. A joint programme of activities will necessarily include those aimed at integration, as well as activities related to the spreading of excellence and dissemination of results outside the network.

In pursuing its objectives, the network will therefore carry out:

- Research and training activities integrated by its participants

- Integration activities which will comprise in particular:

- adaptation of the participants' research activities in order to strengthen their complementarity;

- development and utilisation of electronic information and communication means, and development of virtual and interactive working methods;

- short-, medium- and long-term exchanges of personnel, the opening of positions to researchers from other members of the network, or their training;

- development and use of joint research infrastructures, and adaptation of the existing facilities with a view to a shared use;

- joint management and exploitation of the knowledge generated, and actions to promote innovation.

- Activities of spreading of excellence which will comprise, as appropriate:

- training of researchers;

- communication concerning the achievements of the network and the dissemination of knowledge;

- services in support of technological innovation, aimed in particular at the take-up of new technologies;

- analyses of science/society issues related to the research carried out by the network.

In carrying out some of its activities (such as training of researchers), the network will endeavour to ensure publicity by publishing calls for applications.

The size of the network may vary according to the areas and subjects involved. As an indication, the number of participants should not be less than half a dozen. On average, in financial terms, the Community contribution to a network of excellence may represent several million euros per year.

The network proposals should comprise the following elements:

- a general outline of the joint programme of activities, and its content for the first period, broken down into research activities, integration activities, and activities for spreading excellence;

- the role of the participants, identifying the activities and resources that they will integrate;

- the operation of the network (co-ordination and management of activities);

- the plan for the dissemination of knowledge and the perspectives as regards exploitation of the results.

The partnership may evolve when necessary, within the limit of the initial Community contribution, by replacing participants or adding new ones. In most cases, this will be done through publication of a competitive call .

The programme of activities would be updated yearly and would entail a reorientation of certain activities or launching of new ones not initially foreseen, which could involve new participants. The Commission may launch calls for proposals with a view to the allocation of additional contribution in order to cover, for example, an extension of the integrated activities of the existing network or the integration of new participants.

The Community's financial contribution shall take the form of a grant for integration, the amount of which is determined in relation to the value of the capacities and resources which all the participants propose to integrate. It shall complement the resources deployed by the participants in order to carry out the joint programme of activities. It should be sufficient to act as an incentive for integration, but without creating a financial dependence that might jeopardise the lasting association of the network.

A.2 Integrated projects

Integrated projects are designed to give increased impetus to the Community's competitiveness or to address major societal needs by mobilising a critical mass of research and training resources and competence. Each integrated project will be assigned clearly defined scientific and technological objectives and should be directed at obtaining specific results applicable in terms of, for instance, products, processes or services. Under these objectives they may include more long-term or "risky" research.

Integrated projects will comprise a coherent set of component actions which may vary in size and structure according to the tasks to be carried out, each dealing with different aspects of the research needed to achieve common overall objectives, and forming a coherent whole and implemented in close coordination.

They will be carried out on the basis of overall financing plans preferably involving significant mobilisation of public and private sector funding, including funding from EIB and collaboration schemes such as Eureka.

All the activities carried out in the context of an integrated project will be defined in the general framework of an " implementation plan" comprising activities relating to:

- research, technological development and/or demonstration;

- management, dissemination and transfer of knowledge with a view to promoting innovation;

- analysis and assessment of the technologies concerned, as well as the factors relating to their exploitation.

In pursuit of its objectives, it may also comprise activities relating to:

- training researchers, students, engineers and industrial executives;

- support for the take-up of new technologies;

- information and communication, and dialogue with the public concerning the science/society aspects of the research carried out within the project.

The combined activities of an integrated project may represent a financial size ranging from several million euros to several tens of millions of euros.

Integrated project proposals should contain the following elements:

- the scientific and technological objectives of the project;

- the main lines and timetable of the execution plan, highlighting the articulation of the various components;

- the stages of implementation and the results expected in each one of them;

- the role of the participants within the consortium and the specific skills of each of them;

- the organisation and management of the project;

- the plan for the dissemination of knowledge and the exploitation of results;

- the global budget estimate and the budget for the different activities, including a financial plan identifying the various contributions and their origin.

The partnership may evolve when necessary, within the limit of the initial Community contribution, by replacing participants or adding new ones. In most cases, this will be done through publication of a competitive call .

The implementation plan will be updated yearly. This updating may entail the reorientation of certain activities and the launching of new ones. In the latter case, and where an additional Community contribution is needed, the Commission will identify these activities and the participants who will carry them out, by means of a call for proposals.

The Community contribution shall take the form of a grant to the budget, calculated as a percentage of the budget allocated by the participants to carry out the project, adapted according to the type of activity.

A.3 Integrated infrastructure initiatives

Integrated infrastructure initiatives shall combine in a single action several activities essential to reinforce and develop research infrastructures, in order to provide services at the European level. To this end, they shall combine networking activities with a support activity (such as relating to transnational access) or research activities needed to improve infrastructure performance, excluding, however, the financing of investment for new infrastructures, which can only be financed as specific support actions. They will include a component of dissemination of knowledge to potential users, including industry and in particular to SMEs.

B Other instruments

In order to implement the programme, other instruments may also be used:

B1 Specific targeted research or training projects

I Specific targeted research projects will aim at improving European competitiveness. They will be sharply focussed and will take either of the following two forms, or a combination of the two:

(a) a research and technological development project designed to gain new knowledge either to improve considerably or to develop new products, processes or services or to meet other needs of society and Community policies;

(b) a demonstration project designed to prove the viability of new technologies offering potential economic advantage but which cannot be commercialised directly.

II Specific targeted projects on training are designed to facilitate the timely diffusion of new knowledge on a European scale and better integrate national activities.

B2 Actions to promote and develop human resources and mobility

These actions will be targeted at training, development of expertise or transfer of knowledge. They will involve support to actions carried out by natural persons, host structures, including training networks, and also by European research teams.

B3 Coordination actions

Coordination actions are intended to promote and support the coordinated initiatives of a range of research and innovation operators aiming at improved integration. They will cover activities such as the organisation of conferences, meetings, the performance of studies, exchanges of personnel, the exchange and dissemination of good practices, setting up information systems and expert groups, and may, if necessary, include support for the definition, organisation and management of joint or common initiatives.

B4 Specific support actions

Specific support actions will complement the implementation of the Framework Programme and may be used to help in preparations for future Community research and technological development policy activities including monitoring and assessment activities. In particular, they will involve transnational access to infrastructures, conferences, seminars, studies and analyses, working groups and expert groups, operational support and dissemination, information and communication activities, or a combination of these, as appropriate in each case.

RTDT activities and Community financial contribution according to type of instrument

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(1) As a general principle, the Community financial contribution cannot cover 100% of the expenditure of an indirect action with the exception of proposals covering a purchase price governed by the terms applicable to public procurement procedures or taking the form of a pre-defined lump sum pre-set by the Commission.

However, the Community financial contribution may bear up to 100% of the expenditure of an indirect action if they complement those otherwise borne by the participants. Also, in the specific case of coordination actions, it covers up to 100% of the budget necessary for the coordination of activities funded by the participants themselves.

(2) In duly justified cases.

(3) This rate varies for different areas.

(4) Subject to specific conditions specific legal entities, particularly public bodies, will receive funding of up to 100% of their marginal/additional cost.

(5) The rates of assistance may be differentiated in accordance with the rules of the Community framework for State aid for research and development depending on whether activities relate to research (maximum 50%) or demonstration (maximum 35%) or to other activities implemented, such as training of researchers (maximum 100%) or the management of the consortium (maximum 100%).

(6) The activities of an integrated initiative relating to infrastructure must include one networking activity (Coordination Action: maximum 100% of the budget) and at least one of the following activities: research activities (maximum 50% of the budget) or specific service activities (Specific Support Action, for example, transnational access to research infrastructures: maximum 100% of the budget).

(7) For actions in support of research infrastructure relating to preparatory technical work (including feasibility studies) and the development of new infrastructure, 6th Framework Programme participation is restricted to maximum of 50% and 10% of the budget respectively.

FINANCIAL STATEMENT

Policy area(s): Research

Activity(ies): Research and training actions under the Euratom Treaty.

Title of action

Proposal for a Council Decision adopting a specific programme for research and training actions on "Nuclear Energy".

1. BUDGET LINE(S) + HEADING(S)

Subsection B6 6 Indirect Actions: these lines will be specified at the beginning of the 2003 budget procedure, taking into account the ABB nomenclature, which is being drawn up.

2. OVERALL FIGURES

2.1. Total allocation for action (Part B): EUR 940 million for commitments

2.2. Period of application:

2002-2006

2.3. Overall multiannual estimate of expenditure:

a) Schedule of commitment appropriations/payment appropriations (financial intervention) (see point 6.1.1)

EUR million (to 3rd decimal place)

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b) Technical and administrative assistance and support expenditure (see point 6.1.2)

This budget category does not apply in this field.

c) Overall financial impact of human resources and other administrative expenditure (see points 7.2 and 7.3)

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2.4. Compatibility with the financial programming and the financial perspective

|X| Proposal compatible with existing financial programming

| | This proposal will entail reprogramming of the relevant heading in the financial perspective.

| | This may entail application of the provisions of the Interinstitutional Agreement.

2.5 Financial impact on revenue

| | No financial implications (involves technical aspects regarding implementation of a measure)

|X| Financial impact - the effect on revenue is as follows:

Certain Associated States will contribute to the funding of the Specific Programme.

The association agreements are linked to a Framework Programme. Their renewal will be renegotiated following adoption of the new Framework Programme and it is therefore impossible to forecast the amount of revenue in question.

In accordance with the association agreements for the current Framework Programme and in the context of their renewal, revenue not used by the end of the current Framework Programme (31/12/2002), will be transferred to the new Framework Programme.

In accordance with Article 27 of the Financial Regulation, certain revenue may be refused.

3. BUDGET CHARACTERISTICS

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4. LEGAL BASIS

Article 7 of the Euratom Treaty.

Proposal for a Council Decision relating to the multiannual framework programme 2002-2006 of the European Atomic Energy Community for research and training activities aimed at contributing to the creation of the European Research Area.

5. DESCRIPTION AND GROUNDS

5.1. Need for Community intervention

5.1.1 Objectives pursued

As recognised at the highest political level by the European Council in Lisbon, Feira, Nice and again recently in Stockholm, research is a central component of the knowledge-based economy and society developing worldwide. The objective set for the EU in Lisbon was "to become the most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth, more and better jobs and greater social cohesion" over the next decade. More than ever, research is proving to be one of the main driving forces for economic and social progress, a key factor in business competitiveness, employment and the quality of life. In addition, science and technology are key elements in the policy-making process at both EU and national level.

However, Europe still has structural weaknesses where research is concerned. These can be summed up in four main points:

I. Insufficient and dispersed investment in research and technological development and more generally in knowledge (RTD, education and software), with the result that we are lagging behind our competitors. In 1999, the EU invested EUR 76 billion less than the US in research and development. It is now lagging behind its competitors in terms of research spending as a proportion of GDP (in 1999, the figure was 1.9% for the EU compared with 2.6% for the US and 2.9% for Japan). [15] In 1999, the US invested some 9% in knowledge, ahead of the EU (7.6%) and Japan (6.9%). And the gap is continuing to widen.

[15] 1998 figure.

II. Insufficient human resources in research. Researchers represent 5.3/1000 of the workforce in the EU (1998), 7.4/1000 in the US (1993) and 8.9/1000 in Japan (1998) where there are twice as many researchers in industry. Direct public spending on higher education corresponds to 0.9% of GDP in the EU, 1.4% in the US and 0.5% in Japan (1997).

III. A limited capacity to translate scientific breakthroughs into innovative and competitive products and services, despite high-quality scientific production. The figures for the number of patents granted by the European, American and Japanese patents offices per million inhabitants are 32 in the EU, 49 in the US and 88 in Japan. In 1998, the trade balance for high-tech products was a EUR28 billion deficit for the EU (a trend confirmed throughout the decade), compared with a EUR8 billion deficits for the US and a EUR 39 billion surplus for Japan. Venture-capital investment in the advanced sectors corresponds to 80% in the US and, while it is on the increase, only 26 % in the EU and 23% in Japan.

IV. A fragmentation of research policies in Europe. The EU has not yet adopted a fully-fledged research policy. The 15 national policies co-exist side by side and alongside the Community framework programme without adequate coordination between them to achieve efficient organisation and exploitation. This lack of coordination also affects the establishment and efficient exploitation of research infrastructures.

To alleviate this situation, the Commission has proposed and Council and Parliament have endorsed the creation of a "European Research Area". Bringing it about will necessarily be the product of a joint effort by the EU, the Member States and research stakeholders. The EU research framework programmes (2002-2006) and the specific programmes will make a contribution to this in particular through the significant leverage effect that they can have for integrating, coordinating and structuring research in the EU and strengthening the foundations of the European Research Area.

A structural change in the EU's science and technology fabric to remedy the above mentioned weaknesses will need resources commensurate with the objective. The Commission has proposed funding for the framework programme totalling EUR 17.5 billion, corresponding to the previous level of funding plus inflation and growth (but still representing only 5 to 6% of public spending on RTD). The Commission takes the view that this sort of amount could have a significant effect on the research system as such, improve at least some of the overall research indicators, and have a significant effect in the priority areas of the framework programme which will generate growth in the EU. In overall terms, this level of funding will make it possible to maintain the Community's RTD effort expressed as percentage of GDP at its present level during the period 2003-2006.

The plan is to implement the framework programmes by five specific programmes, three of which come under the European Community Treaty and two under the European Atomic Energy (Euratom) Treaty. Each specific programme is identified according to the nature of the instruments deployed, reflecting the objectives and organisation of the framework programme:

- A programme on "Integrating and strengthening the European Research Area" comprising the indirect actions proposed under the heading "Integrating research" and under the heading "Strengthening the foundations of the European Research Area", thus bring together research and coordination activities.

- A programme on "Structuring the European Research Area", comprising horizontal, support and structuring activities.

- Two "Joint Research Centre (JRC)" programmes comprising the direct actions carried out by the JRC in the non-nuclear and nuclear fields respectively.

- A "Nuclear energy" programme comprising the indirect actions carried out in the field of nuclear energy.

The objectives of the specific programme on "Nuclear energy" are set out below by action areas, together with their justification and the European added value that they can provide.

1. Management of radioactive waste

The objective is to develop and test repository technologies, investigate suitable sites, promote basic scientific understanding relating to safety and safety assessment methods, investigate possible ways of reducing the impact of radioactive waste and to develop decision processes that are perceived as fair and equitable by the stakeholders involved.

Justification and European added value

- The absence of a broadly agreed approach for the management and disposal of high level wastes is a major impediment to the winding up of past installations, as well as the continued and further use of nuclear energy

- An agreed approach would have positive implications for cost, safety and security of energy supplies

Existing radioactive wastes need to be managed.

2. Fusion Energy Research

Fusion energy could contribute to the emission-free large-scale production of base-load electricity. The advances made in fusion energy research justify further pursuit of a vigorous effort towards the long-term objective of a fusion power plant.

Justification and European added value

- Need to progress further towards the understanding of fusion plasmas in conditions relevant to a future reactor.

- The exploitation of the facilities, notably JET, which have been constructed with preferential support, would not be adequately possible on a national scale. Until ITER is in operation, JET is the most powerful tool existing in the world to advance in the study of fusion plasmas.

- The EU by presenting itself as a single partner is in a stronger position for participating in an international project like ITER than Member States individually.

- Need for more fundamental studies and training of young scientists in the area fusion.

Role in ensuring dissemination of the results in the Member States.

3. Radiation protection

The main objective is to resolve uncertainties in the risk from exposures to radiation at levels typically encountered by the population and in workplaces. This remains a controversial scientific and policy issue and has important implications for the use of radiation in both medicine and industry.

Justification and European added value

As radiation is used extensively in medicine and industrial applications, its safety is related to a sound protection policy. The high standards of radiation protection in the EU must be thus maintained (and improved, where necessary) through focused and coordinated research.

4. Other activities in the field of nuclear technologies and safety

The objectives are to support EU policies in the fields of health, energy and the environment, to ensure that European capability is maintained at a high level in relevant fields not covered by the thematic priorities and to contribute to towards the creation of the European Research Area.

Justification and European added value

- A deeper integration is critical to maintaining capabilities in the general context of a mature and/or declining nuclear industry

- Necessity to face important competitors.

- The number of students and institutions offering nuclear education is declining

- The safety of existing nuclear installations should be maintained and/or improved.

5.1.2 Measures taken in connection with ex ante evaluation

When preparing the specific programme proposals the Commission services carried out an ex ante evaluation. Its results reflect in particular:

- the recommendations of the five-year assessment of the framework programmes and specific programmes carried out by independent experts in the course of the year 2000;

- the Commission's mid-term review of the fifth framework programme (1998-2002) presented in COM(2000)612 of 4 October 2000 and detailed in Commission staff paper SEC(2000)1780 of 23 October 2000;

- wide-ranging consultations among the protagonists relating to the two communications on the European Research Area in the course of the year 2000 [16] and the framework programme proposal at the beginning of 2001;

[16] COM (2000) 6, 18 January 2000 COM (2000) 612, 4 October 2000.

- a series of internal and external Commission studies relating to economic, political and foresight areas and the impact of RTD activities.

The results of the ex-ante evaluation carried out are reflected in particular in the choices made with regard to the structure of the programmes, the objectives and priorities and the implementing instruments.

The objectives and priorities were selected in accordance with the rigorous application of the criterion of European added value.

This covers the following aspects applied to the priority themes and activities selected, the justification and European added value of which are described in greater detail in point 5.1. and the expected results in point 5.2.:

- Cost and scale of research beyond the possibilities of a single country, and need to assemble a "critical mass" of financial and human resources;

- Importance of collaboration in economic terms (economies of scale) and as a result of its beneficial effects on the private research effort and industrial competitiveness

- Maintenance or development of the position of the EU in RTD areas strategic for the EU

- Need to combine the complementary expertise present in the different countries, more particularly in the face of interdisciplinary problems and the need to have recourse to comparative studies on a European scale

- Links with the priority interests of the EU as well as with Community legislation and policies

- The necessarily transnational nature of the research as the result of the scale on which the problems arise or for scientific reasons.

With regard to the implementing instruments, three main new instruments will be applied in the context of the Euratom programme. By their nature they can only be implemented at Community level. They have been designed to contribute to the establishment of:

- a critical mass needed and the integration of research;

- closer links between the programmes and Member States' activities and coordination of national programmes;

- cooperation in areas strategic for the EU and solutions to major challenges facing the EU;

- the excellence and attractiveness of S&T in Europe;

- dissemination and exploitation of S&T results throughout the EU.

These instruments are:

a) networks of excellence

The purpose of this instrument is to strengthen European scientific and technological excellence. Each network is intended to advance knowledge in a particular area by assembling a critical mass of expertise. Targeted towards long-term objectives, the activities concerned, often multidisciplinary, are not aimed at precise predefined results in terms of products, processes or services but the progressive and lasting integration of research capacities existing in Europe at both national and regional level. To this end, in order to create a virtual centre of excellence the members of the network will implement a joint programme of activities integrating a substantial proportion or even the entirety of their activities in the area concerned.

b) Integrated projects

The purpose of this instrument is to increase European competitiveness or help to resolve major societal problems by mobilising a critical mass of resources and research and technological development expertise existing in Europe. Accordingly, each integrated project will have the aim of obtaining a certain number of precise results in terms of products, processes or services. The activities carried out in the context of an integrated project will by definition be targeted even in the case of risky research. All the activities carried out in the context of an integrated project will fit into the general framework of an "implementation plan".

c) Integrated infrastructure initiatives

Integrated infrastructure initiatives shall combine in a single action several activities essential to reinforce and develop research infrastructures, in order to provide services at the European level. To this end, they shall combine networking activities with a support activity (such as relating to transnational access) or research activities needed to improve infrastructure performance, excluding, however, the financing of investment for new infrastructures, which can only be financed as specific support actions. They will include a component of dissemination of knowledge to potential users, including industry and in particular to SMEs.

In order to implement the programme, other instruments may also be used:

d) Specific targeted research or training projects

i) Specific targeted research projects will aim at improving European competitiveness. They will be sharply focussed and will take either of the following two forms, or a combination of the two:

- a research and technological development project designed to gain new knowledge either to improve considerably or to develop new products, processes or services or to meet other needs of society and Community policies;

- a demonstration project designed to prove the viability of new technologies offering potential economic advantage but which cannot be commercialised directly.

ii) Specific targeted projects on training are designed to facilitate the timely diffusion of new knowledge on a European scale and better integrate national activities.

e) Actions to promote and develop human resources and mobility

These actions will be targeted at training, development of expertise or transfer of knowledge. They will involve support to actions carried out by natural persons, host structures, including training networks, and also by European research teams.

f) Coordination actions

Coordination actions are intended to promote and support the coordinated initiatives of a range of research and innovation operators aiming at improved integration. They will cover activities such as the organisation of conferences, meetings, the performance of studies, exchanges of personnel, the exchange and dissemination of good practices, setting up information systems and expert groups, and may, if necessary, include support for the definition, organisation and management of joint or common initiatives.

g) Specific support actions

Specific support actions will complement the implementation of the Framework Programme and may be used to help in preparations for future Community research and technological development policy activities including monitoring and assessment activities. In particular, they will involve transnational access to infrastructures, conferences, seminars, studies and analyses, working groups and expert groups, operational support and dissemination, information and communication activities, or a combination of these, as appropriate in each case.

5.1.3 Measures taken following ex post evaluation

The recommendations of the five-year assessment of the framework programmes and the specific programmes carried out in 2000 have been taken into account in preparing the specific programme proposals, in particular those concerning:

- the need to make up for Europe's trailing position in the field of RTD compared with its competitors;

- the need for complementarity and coherence between national and Community RTD policies and the essential role of the Commission in achieving this objective;

- the beneficial impact of the framework programme which "fills a gap in Europe by enabling researchers in universities and in industry to carry out applied work together";

- the need to lighten the management procedures of the 1998-2002 programme and the need to "rethink the structures and procedures for managing the framework programme";

- placing EU research activities in the broader context of a genuine European research policy;

- more concentrated programmes;

- continuing with the research needed to achieve the objectives of Community policies;

- the desired move towards an adapted range of instruments that are more flexible, taking account of all the possibilities offered by the Treaty.

In addition, the mid-term review of the fifth framework programme has resulted in particular in adjustments to the annual work programmes for the specific programmes, aimed at concentrating efforts to a greater extent and launching pilot projects for the measures envisaged for the next framework programme (networks, clusters, industrial platforms, larger-scale projects, etc.).

5.2. Actions envisaged and means of budget intervention

The actions envisaged for the specific programme on "Nuclear energy" are set out below, presented by detailed action areas. This presentation makes it possible to highlight the estimated results expected, the contributions to the overall objectives of the framework programme or of the Community or potential performance parameters associated with these. These indications are intended as yardsticks and not definitively adopted goals.

A correspondence between the action areas and the types of instruments used is given further on in the form of a table.

1. Management of radioactive waste

i) Research on geological disposal

(Improvement of fundamental knowledge, developing and testing technologies, New and improved tools)

ii) Partitioning and transmutation and other concepts to produce less waste in nuclear energy generation

(Partitioning and transmutation; new reactor concepts)

Expected results, contributions to overall objectives or potential performance parameters

- Sound technical basis for demonstrating the safety of disposing of high level radioactive waste in geological formations

- Evaluation of the practicability, on an industrial scale, of partitioning and transmutation

- Concepts for a more efficient use of fissile material with potential for commercial exploitation

2. Fusion Energy Research

i) Associations' programme in physics and technology

(R&D in fusion physics and plasma engineering, Structured R&D activities in fusion technology, Investigations of socio-economic aspects)

ii) Exploitation of the JET facilities

iii) Next Step/ITER

Expected results, contributions to overall objectives or potential performance parameters

- Establishment of a framework for ITER construction and operation,

- Starting up of the Next Step / ITER construction,

- Full exploitation of the JET facilities

- Commissioning of the Stellarator W-7-X.

- a deeper assessment of fusion configurations akin to the Tokamak,

- A deeper understanding of the socio-economic background concerning fusion as an energy source.

- Further developing the physics and technology (in particular materials) basis for fusion energy.

3. Radiation protection

- Quantification of risks associated with low and protracted exposures

- Medical exposures and natural sources of radiation

- Protection of the environment and radioecology

- Risk and emergency management

- Protection of the workplace

Expected results, contributions to overall objectives or potential performance parameters

- Improved quantification of risks for exposure to low doses

- Conceptual and methodological basis for protection of the environment

- More effective and coherent emergency response in Europe

- Deeper integration of European research in radiation protection

4. Other activities in the field of nuclear technologies and safety

i) innovative concepts

ii) education and training

iii) safety of existing nuclear installations

Expected results, contributions to overall objectives or potential performance parameters

- Development of innovative ways of producing nuclear energy and assessment of their potentials

- Development of a co-operative European programme on education and training in the field of nuclear energy

- Improving safety in existing nuclear installations

The means of intervention and financial participation under the framework programme will be as follows, according to the objectives:

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(1) Fusion energy research Projects undertaken in the context of shared-cost research and technological development activities are implemented on the basis of procedures set out in:

- contracts of association with Member States and Associated States or organisations in those States,

- the European Fusion Development Agreement (EFDA),

- any other multilateral agreement between the Community and the associated organisations (such as the agreement on the promotion of mobility) or the legal entities which may be set up after consulting the competent advisory committee,

- other contracts of limited duration, notably with organisations in the Member States or Associated States having no association,

- international agreements covering projects carried out in the context of cooperation with third countries such as ITER and by legal entities which may be set up under those agreements.

The setting-up of consortia for integrated projects having a common objective will be encouraged.

The Community's budgetary intervention is aimed at research centres, universities, businesses and national or international bodies situated in the Member States and the European associated states which fund research activities. The latter may also serve as intermediaries for Community budget intervention. Where this proves necessary to achieve the objectives of the programme, international organisations and bodies in the Member States of the CIS may exceptionally receive Community funding. Such funding must be essential in order to achieve the objectives of the programme.

5.3. Means of implementation

The Commission will ensure the implementation of the actions. In certain duly justified cases, it may call upon external bodies for assistance.

6. FINANCIAL IMPACT

6.1. Total financial impact on Part B - (over the entire programming period)

For the record, the reference allocation for the Framework Programme of the European Community is EUR 16 275 million. The total amount for the Framework Programmes 2002-2006 is EUR 17 500 million.

6.1.1 Financial intervention: Commitments in EURmilllion (to three decimal places)

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An annual schedule for each of these objectives is not significant at this level. It could only be defined as being strictly proportional to that for the entire specific programme, itself in line with that of the framework programme.

The annual internal breakdown will be established subsequently within the work programmes.

6.1.2 Technical and administrative assistance, support expenditure and IT expenditure (Commitment appropriations)

This budget category does not apply in this field.

6.2. Calculation of costs by measure envisaged in Part B (over the entire programming period)

Here too, a breakdown by objective and type of measure cannot be established at this stage, since the outputs from the indirect research actions are research projects resulting from calls for proposals after evaluation, hence the difficulty of quantifying these actions in advance.

7. IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE

The ceiling for administrative expenditure on this programme is 16.5% of the EUR 940 million planned for this action as a whole.

This particular situation is due to the fact that this programme has 224 research posts at its disposal, costing - for the whole period - 85% of the requested ceiling.

This high number of posts arises out of the mode of operation of the programme. In fact 115 Commission's officials are seconded either to national laboratories in different Member States or to the ITER project.

There were successive redeployments throughout the fifth Framework Programme in order to reduce the staff on the programme and better to balance the staff and the budget for the period 1999-2002. These redeployments will continue and the particular situation of the Commission staff working abroad will be examined.

The programmes other expenditure is quite low owing mainly to the small number of contracts managed. Note that about a third of this other expenditure also relates to the ITER project.

7.1. Impact on human resources

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There is a specific establishment plan for the indirect research actions comprising a total of 954 A posts, 273 B posts and 427 C posts, giving a total of 1654 posts (EC and EURATOM, including SAB 3/2001).

To this establishment plan should be added 156 operating budget posts with no financial impact on the budget for these programmes, under the heading of participation in the formulation and implementation of research policy.

7.2 Overall financial impact of human resources

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The amounts correspond to total expenditure for the duration of the programme.

7.3 Other administrative expenditure deriving from the action

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The amounts correspond to total expenditure for the action for the four years of implementation of this specific programme, i.e. total annual expenditure of EUR38.750 million.

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8. MONITORING AND EVALUATION

8.1 Monitoring system

The specific programmes are designed to help bring about the European Research Area and they will be implemented in parallel with and in close collaboration with other Community and national activities in pursuit of the same objectives. The very nature of research and the different types of actions at different levels make it difficult to determine causes and effects, and monitoring and evaluating the result and impact are complex.

Based on the experience of the earlier programmes and methodological studies in progress, a series of instruments has already been or is being finalised in order to develop the objectives and monitor and evaluate the results and impact of the framework programme and programmes implementing it, as well as the activities relating to bringing about the ERA. The Commission will take stock of the development of these instruments in good time before the programmes are implemented.

By these means, a structured system for collection of information and statistics will be progressively put in place.

Within this context general indicators specifically adapted to the framework programme will be developed, to make it possible to evaluate in particular the contributions of the programmes in relation to the challenges facing the EU identified in point 5.1 (Investment in RTD and in knowledge, overall and in the priority fields for the EU, human RTD resources, exploitation of RTD results, coherence of national and Community research policies and with regard to research infrastructures).

In addition, more specific indicators will be identified for the different objectives of the programmes; relating in particular to the production, management and networking, exploitation and impact of the knowledge arising from the activities carried out under the programmes. First thoughts in this connection are already indicated in point 5.2 under the heading of results expected, contributions to overall objectives or potential performance parameters.

8.2 Arrangements and schedule for the planned evaluation

- Annual monitoring: The Commission will, by calling upon suitable expertise where appropriate, continuously monitor the implementation of the Framework Programme and the specific programmes in the light of the objectives set. It will assess, in particular, whether the objectives, priorities, instruments, financial resources and management are still appropriate to the changing situation.

The objective is to step up and improve the systematic collection, coherence and quality of the basic information, in order to allow efficient analysis and monitoring as well as a substantial contribution to the five-year assessment. In order to make Community research managers more aware of issues relating to the monitoring of the implementationand the results and the impact of the programmes, it is also planned to draw up a joint self-assessment format. In addition, measures will be taken to ensure greater coherence between the monitoring of the framework programme, the specific programmes and progress with the European Research Area.

Annual report: Progress with implementing the Framework Programme and the specific programmes will be published in the annual report submitted to the European Parliament and the Council pursuant to Article 173 of the Treaty. It will set out in particular the results of the annual monitoring, a description of the activities carried out in the field of research and technological development, realisation of the European Research Area and dissemination of results during the preceding year, and the work programme for the current year.

- Five-year assessment: Before submitting its proposal for the next Framework Programme and the specific programmes, the Commission will have an assessment carried out by independent high-level experts of the implementation of Community activities during the five years preceding that assessment, the achievement of the objectives and the impact of the activities in the light of the objectives applicable to the periods in question. The Commission will communicate the conclusions of this assessment, accompanied by its observations, to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions.

9. ANTI-FRAUD MEASURES

By submitting reports which may give rise to the consolidation of revenue in the participants' accounts, the financial coordinator should make all the financial documentation available to the Commission to enable it to carry out its financial audits, indicating the timetable and the consolidation of the participants' accounts.

Where appropriate, the Commission will carry out such financial audits, in particular if it has reasons to doubt the realistic nature of the accounts vis-à-vis the progress of work described in the activity reports.

The Community's financial audits will be carried out either by its own staff or by accounting experts approved according to the law of the participant audited. The Community will chose the latter freely, while avoiding any risks of conflicts of interest, which might be indicated to it by the participant subject to the audit.

In addition, the Commission will make sure in carrying out the research activities, that the financial interests of the European Communities are protected by effective checks and, in case of detected irregularities, measures as well as deterrent and proportionate sanctions.

In order to achieve this aim, rules on checks, measures and sanctions, with references to the Regulations Nos 2988/95, 2185/96, 1073/99 and 1074/99 will be taken up in all legal instruments used in the implementation of the programmes, including the specific contracts and model contracts.

In particular, the following points will have to be provided for in the contracts :

- the introduction of specific contractual clauses to protect the financial interests of the EC in carrying out checks and controls in relation to the awards;

- accordance with Regulations Nos 2185/96, 1073/99 and 1074/99;

- the application of administrative sanctions for all intentional or negligent irregularities in the implementation of the contracts, in accordance with the framework Regulation No 2988/95, including a black-listing mechanism;

- the fact that possible recovery orders in case of irregularities and fraud be enforceable pursuant to Article 164 of the Euratom Treaty.