Proposal for a COUNCIL DECISION concluding the Agreement for scientific and technical cooperation between the European Community and the State of Israel
Date: 1996-05-14
Institutions: European Commission
Subjects: Israel, association agreement (EU), cooperation agreement (EU), scientific cooperation, technical cooperation

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels,  14.05.1996 
COM(96)  205  final 

96/0134  (CNS) 

Proposal  for a 

COUNCIL  DECISION 

concluding the Agreement for scientific and technical cooperation between the European Community 
and the State of  Israel 

(presented  by the  Commission) 

EXPLANATORY  MEMORANDUM 

Subject  : 

Proposal  for  a  Council  Decision  concluding  the  Agreement  for  scientific  and 
technical cooperation between the European Community  and the State of Israel 

1. 

On 29 September  1994, the Council authorized  the Commission  to negotiate an  Agreement 
for  scientific  and  technical  cooperation  between  the European  Community  and  the State of 
Israel. 

The  results of  these negotiations  were approved  by  the Commission  on  14 December  1995 
(COM(95)664)  and  transmitted  to  Council  (letter  from  Commissioner  Fischler,  dated 
15 December  1995)  proposing  that  the Council  : 

decide  that  the  Agreement  be  signed  on  behalf  of  the  Community,  and 
authorize the President of the Council to appoint the persons duly empowered to sign 
on  behalf  of  the  Community. 

3. 

On  18  March  1996,  the  Council  decided  that  the  Agreement  be  signed  on  behalf  of  the 
Community.  Signing  took  place  in  Brussels,  on  25  March  1996. 

In  the  light  of  the  above-mentioned  considerations,  the  Commission  proposes  that  the 
Council,  after  consultation  of  the European  Parliament  : 

conclude the attached  Agreement for  scientific and technical cooperation between the 
European  Community  and  the  State of  Israel;  and 
give notification  to the Israeli authorities  that the procedures  necessary  for  the entry 
into  force  of  the  Agreement  have  been  completed  on  the  part  of  the  European 
Community. 

Z 

Proposal  for  a 

COUNCIL  DECISION 

concluding the Agreement for scientific and technical cooperation between the European  Community 
and  the  State of  Israel 

THE  COUNCIL  OF  THE  EUROPEAN  UNION, 

Having regard  to the Treaty establishing the European  Community,  and in particular  Article  130m, 
in  conjunction  with  Article  228(2),  first  sentence,  and  the  first  subparagraph  of  Article  228(3) 
thereof, 

Having  regard  to  the proposal  from  the  Commission  ('), 

Having  regard  to  the  Opinion  of  the  European  Parliament  (2), 

WHEREAS the European Community and Israel are pursuing specific research programmes in areas 
of  common  interest; 

WHEREAS  on  the  basis  of  past  experience  under  the  1975  Cooperation  Agreement  between  the 
European  Communities  and  Israel,  both  sides  have  expressed  a  desire  to  establish  a  deeper  and 
broader  framework  for  the conduct  of  collaboration  in  science and  technology; 

WHEREAS  the  State  of  Israel,  on  the one  hand,  and  the  European  Community  and  its  Member-
States, on the other hand,  have signed a Euromediterranean association agreement providing  for the 
negotiation  of  a  cooperation  agreement  in  the  field  of  science  and  technology; 

WHEREAS  by  its  Decision  of  29  September  1994,  the  Council  authorized  the  Commission  to 
negotiate  an  agreement  for  scientific  and  technical  cooperation  between  the European  Community 
and  the  State of  Israel; 

WHEREAS by its Decision of  18 March  1996, the Council decided that the Agreement for  scientific 
and  technical  cooperation  be  signed  on  behalf  of  the  European  Community3; 

WHEREAS  the Agreement  for  scientific  and technical  cooperation  was signed  on 25  March  1996; 

WHEREAS  the  Agreement  for  scientific  and  technical  cooperation  between  the  EC  and  the  State 
of  Israel  should  be  approved, 

1  O.J. N° 

2  O.J. N° 

3  O.J. N' 

3 

HAS DECIDED AS FOLLOWS : 

The Agreement for  scientific and technical cooperation between the European Community and the 
State of Israel is hereby approved.  The text of the Agreement is attached  to this Decision. 

Article 1 

Article 2 

Pursuant to Article 13 of the Agreement, the President of the Council shall give notification  that the 
procedures necessary for the entry into force of the Agreement have been completed on the part of 
the European Community. 

Done at 

For the Council 

The President 

ON  SCIENTIFIC  AND  TECHNICAL  COOPERATION  BETWEEN 

AGREEMENT 

THE  EUROPEAN  COMMUNITY 

AND  THE  STATE  OF ISRAEL 

S 

THE  COUNCIL  OF  THE  EUROPEAN  UNION,  acting  on  behalf  of  the  European  Community 

(hereinafter  "the  Community"), 

of  the  one  part,  and 

THE  GOVERNMENT  OF  THE  STATE  OF  ISRAEL,  acting  on  behalf  of  the  State  of  Israel 

(hereinafter  "Israel"), 

of  the  other  part, 

hereinafter  referred  to  as  the  "Parties", 

CONSIDERING  the  importance  of  scientific  and  technical  research  for  Israel  and  the 

Community  and  their  mutual  interest  in  cooperating  in  this  matter  in  order  to  make  better 

use  of  resources  and  avoid  unnecessary  duplication; 

WHEREAS  Israel  and  the  Community  are  currently  implementing  research  programmes  in 

fields  of  common  interest; 

WHEREAS  Israel  and  the  Community  have  an  interest  in  cooperating  on  these  programmes 

to  their  mutual  benefit; 

CONSIDERING  the  interest  of  both  Parties  in  encouraging  the  mutual  access  of  their 

research  entities  to  research  and  development  activities  in  Israel  on  the  one  hand,  and  to 

the  Community's  framework  programmes  for  research  and  technological  development  on 

the  other; 

WHEREAS,  for  this  purpose,  it  is  desirable  that  a  framework  be  established  to  encompass 

the  full  extent  of  cooperation  between  Israel  and  the  Community  in  the  field  of  research; 

WHEREAS  the  State  of  Israel,  on  the  one  hand,  and  the  European  Community  and  its 

Member  States,  on  the  other  hand,  have  negotiated  an  agreement  providing  for  the 

negotiation  of  a  cooperation  agreement  in  the  field  of  science  and  technology; 

WHEREAS,  by  Decision  No  11 10/94/EC,  the  European  Parliament  and  the  Council  of  the 

European  Union  adopted  a  Framework  Programme  of  European  Community  activities  in  the 

field  of  research  and  technological  development  and  demonstration  (1994-1998), 

hereinafter  called  the  "Fourth  Framework  Programme"; 

WHEREAS,  without  prejudice  to  the  relevant  provisions  of  the  Treaty  instituting  the 

European  Community,  this  Agreement  and  any  activities  entered  into  under  it  will  in  no 

w ay  affect  the  powers  vested  in  the  Member  States  to  undertake  bilateral  activities  with 

Israel  in  the  fields  of  science,  technology,  research  and  development,  and  to  conclude, 

where  appropriate,  agreements  to  that  end, 

HAVE  AGREED  AS  FOLLOWS: 

3 

ARTICLE  1 

1.  Research  entities  established  in  Israel  may  participate  in  all the  specific  programmes  of 

the  Fourth  Framework  Programme. 

2. 

Israeli  scientists  or  research  entities  may  participate  in  the  activities  of  the  Joint 

Research  Centre. 

3.  Research  entities  established  in  the  Community  may  participate  in  research 

programmes  and  projects  in  Israel  in themes  equivalent  to  those  of  the  programmes  of  the 

Fourth  Framework  Programme. 

4.  "Research  entities"  as  referred  to  in  this  Agreement,  shall  include  inter  alia: 

universities,  research  organizations,  industrial  companies,  including  small  and 

medium-sized  enterprises,  or  individuals. 

ARTICLE  2 

Cooperation  may  take  the  following  forms: 

participation  of  research  entitles  established  in  Israel  in  the  implementation  of  al 

specific  programmes  adopted  under  the  Fourth  Framework  Programme,  in 

accordance  with  the  terms  and  conditions  laid  down  in  the  "rules  for  the 

participation  of  undertakings,  research  centres  and  universities  in  research, 

technological  development  and  demonstration  activities  of  the  European 

Community", 

% 

financial  contribution  by  Israel  to  the  budgets  of  the  programmes  adopted  for  the 

implementation  of  the  Fourth  Framework  Programme  on  the  basis  of  the  ratio  of 

Israel's  GDP  to  that  of  the  Member  States  of  the  European  Union, 

participation  of  research  entities  established  in  the  Community  in  Israeli  research 

projects  and  their  results,  in  accordance  w i th  the  terms  and  conditions  applying  in 

Israel  in  every  case;  research  entities  established  in  the  Community  participating  in 

Israeli  research  projects  within  research  and  development  programmes  shall  cover 

their  o wn  costs,  including  their  relative  share  of  the  project's  general  management 

and  administrative  costs, 

regular  discussions  on  the  orientations  and  priorities  of  research  policies  and  planning 

in  Israel  and  the  Community, 

discussions  on  cooperation  prospects  and  development, 

timely  provision  of  information  concerning  the  implementation  of  RTD  programmes  in 

Israel  and  the  Community,  and  concerning  the  results  of  work  undertaken  within  the 

framework  of  cooperation. 

ARTICLE  3 

Cooperation may be achieved  by the following  means: 

participation  in Community  programmes  or subprogrammes  or joint  research 

activities, and notably  in shared cost research contracts, concerted actions, 

coordination  activities, including  thematic  networks, education  and training activities, 

studies and assessments, 

joint  meetings, 

visits  and exchanges  and research workers, engineers  and technicians, 

regular,  sustained contacts  between  programme  or project managers, 

- 

participation  of  experts  in seminars, symposia  and workshops. 

ARTICLE  4 

« 

Cooperation  may be adapted  and developed  at  any time  by mutual  agreement  between the 

Parties. 

40 

ARTICLE  5 

Research  entities  established  in  Israel,  participating  in  Community  research  programmes, 

shall,  as  regards  ownership,  exploitation  and  dissemination  of  information  and  intellectual 

property  arising  from  such  participation,  have  the  same  rights  and  obligations  as  those  of 

research  entities  established  in  the  Community,  subject  to  Annex  A. 

Research  entities  established  in  the  Community,  taking  part  in  Israeli  research  projects 

within  research  and  development  programmes,  shall,  as  regards  ownership,  exploitation 

and  dissemination  of  information  and  intellectual  property  arising  from  such  participation, 

have  the  same  rights  and  obligations  as  those  of  Israeli  research  entities  in  the  project  in 

question,  subject  to  Annex  C. 

ARTICLE  6 

A  joint  committee  shall  be  established,  to  be  called  the  "EC-Israel  Research  Committee' 

whose  functions  shall  include: 

reviewing  and  evaluating  the  implementation  of  this  Agreement, 

examining  any  measure  of  a  nature  to  improve  and  develop  cooperation, 

^T7 

regularly discussing  the  future  orientations  and priorities of  research policies and 

research planning  in Israel and the  Community,  and the prospects  for  future 

cooperation, 

ensuring the  proper  implementation  of this  Agreement. 

The committee,  which shall be composed  of  representatives  of the  Commission  and of 

Israel, shall adopt  its rules of  procedure. 

It shall meet,  at the  request of the  Parties, at least once a year.  Extraordinary  meetings 

shall be held at the request of  one or the  other  of  the Parties. 

ARTICLE  7 

1.  Excluding  the first  budgetary  year  of  implementation  of the Community's  Fourth 

Framework  Programme  (hereinafter  "the first year"),  Israel's financial contribution  deriving 

from  participation  in the  implementation  of the specific  programmes  shall be established in 

proportion  to, and in addition to,  the amount  available  each year  in the general budget of 

the  Communities  for  commitment  appropriations  to  meet the  Commission's  financial 

obligations  stemming  from  work  to  be carried out  in the forms  necessary  for the 

implementation,  management  and operation  of these  programmes. 

/>e 

2.  The  proportionality  factor  governing  Israel's  contribution  shall  be  obtained  by 

establishing  the  ratio  between  Israel's  gross  domestic  product,  at  market  prices,  and  the 

sum  of  gross  domestic  products,  at  market  prices,  of  the  Member  States  of  the 

European  Union.  This  ratio  shall  be  calculated  on  the  basis  of  the  latest  statistical  data 

from  the  International  Bank  for  Reconstruction  and  Development,  available  at  the  time  of 

publication  of  the  preliminary  draft  budget  of  the  European  Communities. 

3.  The  rules  for  financial  participation  by  the  Community  are  set  out  in  Annex  IV  of 

Decision  No  1110/94/EC  of  the  European  Parliament  and  of  the  Council,  of  26  April  1 9 9 4. 

4.  The  rules  governing  Israel's  financial  contribution  are  set  out  in  Annex  B. 

ARTICLE  8 

1. 

Israeli  representatives  will  participate  in  the  programme  management  committees  of 

the  Fourth  Framework  Programme.  These  committees  shall  meet  without  the  presence  of 

Israeli  representatives  at  the  time  of  voting  and  otherwise  only  in  special  circumstances. 

Israel  will  be  informed. 

2.  Participation  as  referred  to  in  paragraph  1, of  this  Article  shall  take  the  same  form, 

including  procedures  for  receipt  of  information  and  documentation,  as  that  applicable  to 

participants  from  Member  States. 

AZ 

ARTICLE  9 

1.  Without  prejudice  to  the  provisions  of  Article  5,  research  entities  established  in  Israel 

participating  in  the  Fourth  Framework  Programme  shall  have  the  same  contractual  rights 

and  obligations  as  entities  established  in  the  Community,  taking  into  account  the  mutual 

interests  of  the  Community  and  Israel. 

2.  For  Israeli  research  entities,  the  terms  and  conditions  applicable  for  the  submission  and 

evaluation  of  proposals  and  those  for  the  granting  and  conclusion  of  contracts  under 

Community  programmes  shall  be  the  same  as  those  applicable  for  contracts  concluded 

under  the  same  programmes  w i th  research  entities  in  the  Community,  taking  into  account 

the  mutual  interests  of  the  Community  and  Israel. 

3. 

Israeli  experts  shall  be  taken  into  consideration,  alongside  Community  experts,  in  the 

selection  of  evaluators  or  referees  under  the  Community's  RTD  programmes. 

4.  The  financial  coordinator  of  a  project  involving  partners  from  both  Israel  and  the 

Community  must  be  established  in  a  Member  State  of  the  European  Union  or  in  an  EFTA 

State,  Contracting  Party  to  the  Agreement  on  the  European  Economic  Area.  The  scientific 

coordinator  of  such  a  project  may  be  established  in  Israel. 

5.  Without  prejudice  to  the  provisions  of  Article  5,  research  entities  established  in  the 

Community  participating  in  Israeli  research  projects  within  research  and  development 

programmes  shall  have  the  same  contractual  rights  and  obligations  as  Israeli  entities, 

subject  to  Annex  C,  taking  into  account  the  mutual  interests  of  the  Community  and  Israel. 

A  ^ 

6.  For  research  entities  from  the  Community,  the  terms  and  conditions  applicable  for  the 

submission  and  evaluation  of  proposals  and  those  for  the  granting  and  conclusion  of 

contracts  for  projects  within  Israeli  research  and  development  programmes  shall  be 

equivalent  to  those  applicable  for  contracts  concluded  under  the  same  research  and 

development  programmes  w i th  research  entities  in  Israel,  subject  to  Annex  C,  taking  into 

account  the  mutual  interests  of  the  Community  and  Israel. 

ARTICLE  10 

Each  Party  undertakes,  in  accordance  w i th  its  o wn  rules  and  regulations,  to  facilitate  the 

movement  and  residence  of  research  workers  participating,  in  Israel  and  in  the 

Community,  in  the  activities  covered  by  this  Agreement. 

ARTICLE  11 

Annexes  A,  B  and  C  form  an  integral  part  of  this  Agreement. 

ARTICLE  12 

1.  This  Agreement  is  hereby  concluded  for  the  duration  of  the  Fourth  Framework 

Programme. 

AC 

2.  Subject  to  paragraph  1, either  of  the  Contracting  Parties  may  terminate  this  Agreement 

at  any  time  upon  twelve  months'  notice.  Projects  and  activities  in  progress  at  the  time  of 

termination  and/or  expiry  of  this  Agreement  shall  continue  until  their  completion  under  the 

conditions  laid  d o wn  in  this  Agreement. 

3.  Should  the  Community  decide  to  revise  one  or  more  Community  programmes,  this 

Agreement  may  be  terminated  under  mutually  agreed  conditions. 

Israel  shall  be  notified  of 

the  exact  content  of  the  revised  programmes  within  one  week  of  their  adoption  by  the 

Community.  The  Parties  shall  notify  one  another,  within  one  month  after  the  adoption  of 

the  Community  decision,  of  any  intention  to  terminate  this  Agreement. 

4.  Where  the  Community  adopts  a  new  multi-annual  framework  programme  for  research 

and  development,  this  Agreement  may  be  renegotiated  or  renewed  under  mutually  agreed 

conditions. 

ARTICLE  13 

This  Agreement  shall  be  approved  by  the  Parties  in  accordance  w i th  their  existing 

procedures. 

It  shall  enter  into  force  on  the  date  on  which  the  Parties  shall  notify  each  other  of  the 

completion  of  the  procedure?  necessary  for  this  purpose. 

^Ç, 

ARTICLE  14 

This  Agreement  shall  apply,  on  the  one  hand,  to  the  territories  in  which  the  Treaty 

establishing  the  European  Community  is  applied  and  under  the  conditions  laid  down  in  that 

Treaty  and,  on  the  other  hand,  to  the  territory  of  the  State  of  Israel. 

ARTICLE  1 5 

This  Agreement  is drawn  up  in  duplicate  in  the  Danish,  Dutch,  English,  Finnish,  French, 

German,  Greek,  Italian,  Portuguese,  Spanish,  Swedish  and  Hebrew  languages,  each  of 

these  texts  being  equally  authentic. 

For  the  Government 

of  the  State  of  Israel 

For  the  Council 

of  the  European  Union 

•i} 

ANNEX  A 

PRINCIPLES  ON  THE  ALLOCATION  OF  INTELLECTUAL  PROPERTY  RIGHTS 

I.  Ownership,  allocation  and  exercise  of  rights 

1.  The  contractual  arrangements  agreed  on  by  the  participants  under  the  rules  set  out  to 

implement  Article  130j  of  the  Treaty  establishing  the  European  Community,  shall  address, 

in  particular,  the  ownership  and  use,  including  publication,  of  information  and  intellectual 

property  (IP)  to  be  created  in  the  course  of  joint  research,  taking  into  account  the  aims  of 

the  joint  research,  the  relative  contributions  of  the  participants,  the  advantages  and 

disadvantages  of  licensing  by  territory  or  for  fields  of  use,  requirements  imposed  by 

applicable  laws,  dispute  settlement  procedures,  and  other  factors  deemed  appropriate  by 

the  participants.  The  rights  and  obligations  concerning  the  research  generated  by  visiting 

researchers,  if  any,  in  respect  of  IP  shall  also  be  addressed  in  the  said  arrangements. 

2. 

In  the  implementation  of  this  Agreement,  as  regards  participation  in  the  Fourth 

Framework  Programme,  information  and  IP  shall  be  exploited  in  conformity  w i th  the 

mutual  interests  of  the  Community  and  Israel,  and  the  contractual  arrangements  shall 

provide  accordingly. 

In  the  case  of  information  and  IP  generated  in  the  execution  of  a 

project  pursuant  to  the  Fourth  Framework  Programme,  the  contractual  arrangements  shall 

provide  also  for  the  rights  specified  in  Article  5  of  the  Agreement  to  be  granted  only 

concerning  information  and  IP  arising  after  the  effective  date  of  Israel's  financial 

contribution. 

At 

3. 

Information  or  IP  created  in  the  course  of  joint  research  and  not  addressed  in  the 

contractual  arrangements  shall  be  allocated,  according  to  the  principles  set  out  in  the 

contractual  arrangements,  including  dispute  settlement.  Where  no  binding  decision  is 

reached  by  the  agreed  dispute  resolution  technique  chosen  by  participants,  such 

information  or  IP  shall  be  owned  jointly  by  all  the  participants  involved  in  the  joint  research 

from  which  the  information  or  IP  results.  Failing  agreement  on  exploitation,  each 

participant  to  w h om  this  provision  applies,  shall  have  the  right  to  use  such  information  or 

IP for  his  o wn  commercial  exploitation  w i th  no  geographical  limitation. 

4.  Each  Party  shall  ensure  that  the  other  Party  and  its  participants  may  have  the  rights  to 

IP  allocated  in  accordance  w i th  the  principles  set  out  in  Section  I  of  this  Annex 

5.  While  maintaining  the  conditions  of  competition  in  areas  affected  by  the  Agreement, 

each  Party  shall  endeavour  to  ensure  that  rights  acquired  pursuant  to  this  Agreement  and 

arrangements  made  under  it  are  exercised  in  such  a  way  as  to  encourage  in  particular: 

(i) 

the  dissemination  and  use  of  information  created,  disclosed,  or  otherwise  made 

available,  under  the  Agreement;  and 

(ii)  the  adoption  and  implementation  of  international  standards. 

II. 

International  conventions 

IP  belonging  to  the  Parties  or  to  their  participants  shall  be  accorded  treatment  consistent 

with  the  relevant  international  conventions,  including  the  TRIPS  Agreement  of  the 

GATT-WTO,  the  Berne  Convention  (Paris  Act  1971),  and  the  Paris  Convention 

(Stockholm  Act  1967). 

A3 

ANNEX  B 

FINANCIAL  RULES  GOVERNING  THE  FINANCIAL  CONTRIBUTION 

OF  ISRAEL  REFERRED  TO  IN  ARTICLE  7  OF  THIS  AGREEMENT 

1.  Determination  of  the  financial  participation 

1 . 1.  The  Commission  of  the  European  Communities  shall  communicate  to  Israel,  and 

shall  inform  the  EC-Israel  Research  Committee,  together  w i th  relevant  background 

material,  as  soon  as  possible,  and  at  the  latest  on  1  September,  of  each  financial  year: 

(a)  the  amounts  in  commitment  appropriations,  in  the  statement  of  expenditure  of  the 

preliminary  draft  budget  of  the  European  Communities  corresponding  to  the  Fourth 

Framework  Programme; 

(b)  the  estimated  amount  of  the  contributions  derived  from  the  preliminary  draft  budget, 

corresponding  to  the  participation  of  Israel  in  the  Fourth  Framework  Programme. 

Nonetheless,  in  order  to  facilitate  internal  budgetary  procedures,  the  Commission  services 

shall  provide  corresponding  indicative  figures  at  the  latest  on  30  May  of  each  year. 

1.2.  As  soon  as  the  general  budget  has  been  finally  adopted  the  Commission  shall 

communicate  to  Israel  the  above  amounts  \n  the  statement  of  expenditure  corresponding 

to  the  participation  of  Israel. 

Zo 

2.  Payment  procedures 

2 . 1.  The  Commission  shall  issue,  at  the  latest  on  1 January  and  15  June  of  each 

financial  year,  a  call  for  funds  to  Israel  corresponding  to  its  contribution  under  this 

Agreement.  These  calls  for  funds  shall  provide,  respectively,  for  the  payment: 

- 

of  six-twelfths  of  Israel's  contribution  not  later  than  20  January, 

- 

and  six-twelfths  of  its  contribution  not  later  than  15  July. 

However,  the  six-twelfths,  to  be  paid  not  later  than  20  January  are  calculated  on  the  basis 

of  the  amount  set  out  in  the  statement  of  revenue  of  the  preliminary  draft  budget:  the 

regularization  of  the  amount  thus  paid  shall  occur  w i th  the  payment  of  the  six-twelfths  not 

later  than  1 5  July. 

2.2.  The  contributions  of  Israel  shall  be  expressed  and  paid  in  ECUs. 

2.3. 

Israel  shall  pay  its  contribution  under  this  Agreement  according  to  the  schedule  in 

paragraph  2.1  above.  Any  delay  in  payment  shall  give  rise  to  the  payment  of  interest  at  a 

rate  equal  to  the  one-month  interbank  offered  rate  (IBOR)  in  ECU  as  quoted  by  the 

International  Swap  Dealers'  Association  on  the  page  ISDA  of  Reuters.  This  rate  shall  be 

increased  by  1,5%  for  each  month  of  delay.  The  increased  rate  shall  be  applied  to  the 

entire  period  of  delay.  However,  the  interest  shall  be  due  only  if  the  contribution  is  paid 

more  than  thirty  days  after  the  scheduled  payment  dates  mentioned  in  paragraph  2.1 

above. 

2  A 

2.4.  Travel  costs  incurred  by  Israeli  representatives  and  experts  for  the  purposes  of 

taking  part  in  the  work  of  the  committees  referred  to  in  Articles  8  and  9  of  this  Agreement 

and  those  involved  in  the  implementation  of  the  Fourth  Framework  Programme  shall  be 

reimbursed  by  the  Commission  on  the  same  basis  as  and  in  accordance  w i th  the 

procedures  currently  in  force  for  the  representatives  and  experts  of  the  Member  States  of 

the  European  Union. 

3.  Conditions  for  the  implementation 

3 . 1.  The  financial  contribution  of  Israel  to  the  Fourth  Framework  Programme  in 

accordance  with  Article  7  of  the  Agreement  shall  normally  remain  unchanged  for  the 

financial  year  in  question. 

3.2.  The  Commission,  at  the  time  of  the  closure  of  the  accounts  relating  to  each 

financial  year  (n),  within  the  framework  of  the  establishment  of  the  revenue  and 

expenditure  account,  shall  proceed  to  the  regularization  of  the  accounts  with  respect  to 

the  participation  of  Israel,  taking  into  consideration  modifications  which  have  taken  place, 

either  by  transfer,  cancellations,  carry-overs,  decommitments,  or  by  supplementary  and 

amending  budgets  during  the  financial  year.  This  regularization  shall  occur  at  the  time  of 

the  second  payment  for  the  year  n+  1.  Further  regularizations  shall  occur  every  year 

until  July  2 0 0 2. 

Payments  by  Israel  shall  be  credited  to  the  Community  programmes  as  budget  receipts 

allocated  to  the  appropriate  budget  heading  in  the  statement  of  revenue  of  the  general 

budget  of  the  European  Communities. 

^^ 

The  financial  regulation  applicable  to  the  general  budget  of  the  European  Communities 

shall  apply  to  the  management  of  the  appropriations. 

4. 

Information 

At  the  latest  on  31  March  of  each  financial  year  (n +  1),  the  statement  of  appropriations 

for  the  Fourth  Framework  Programme  related  to  the  previous  financial  year  (n),  shall  be 

prepared  and  transmitted  to  Israel  for  information,  according  to  the  format  of  the 

Commission's  revenue  and  expenditure  account. 

l 2> 

ANNEX  C 

1.  The  participation  of  research  entities  established  in  the  Community  in  projects  of 

Israeli  research  and  development  programmes  shall  require  the  joint  participation  of  at 

least  one  Israeli  research  entity.  Proposals  for  such  participation  shall  be  submitted  jointly 

w i th  the  Israeli  research  entity/ies. 

2.  The  rights  and  obligations  of  research  entities  established  in  the  Community 

participating  in  Israeli  research  projects  within  research  and  development  programmes,  and 

the  terms  and  conditions  applicable  for  the  submission  and  evaluation  of  proposals  and  for 

the  granting  and  conclusion  of  contracts  in  such  projects,  shall  be  subject  to  Israeli  laws, 

regulations  and  government  directives  governing  the  operation  of  research  and 

development  programmes,  as  well  as  national  security  constraints  where  applicable,  as 

applicable  to  Israeli  participants  and  assuring  equitable  treatment,  taking  into  account  the 

nature  of  the  cooperation  between  Israel  and  the  Community  in  this  field. 

3.  Depending  on  the  nature  of  the  project,  proposals  may  be  submitted  to: 

(i) 

The  Office  of  the  Chief  Scientist  in  the  Ministry  of  Industry  and  Trade.  Except  for 

projects  in  the  field  specified  in  (ii)  below,  there  are  no  predefined  fields  for  projects 

in  this  research  and  development  programme.  Projects  may  be  submitted  in  any 

field  of  industrial  research  and  development; 

2M 

(ii) 

The  Office  of  the  Chief  Scientist  in  the  Ministry  of  Industry  and  Trade  for  proposals 

in  the  fields  of  pre-industrial  projects  within  the  framework  of  academic  institutions; 

(iii) 

The  Ministry  of  Science  and  the  Arts,  for  strategic  research  in  the  fields  of 

Electro-optics,  Micro-electronics,  Biotechnology,  Information  Technology; 

(iv) 

The  Ministry  of  Agriculture  -  The  Fund  for  the  Encouragement  of  Agricultural 

Research; 

(v) 

The  Ministry  of  Energy  in  the  fields  of  Energy  and  Earth  Sciences; 

(vi) 

The  Ministry  of  Health  in  the  field  of  medical  research. 

Israel  shall  regularly  inform  the  Community  and  Israeli  research  entities  of  current  Israeli 

programmes  and  participation  opportunities  for  research  entities  established  in  the 

Community. 

4.  Any  contractual  arrangements  between  research  entities  established  in  the 

Community  and  Israeli  entities,  and/or  between  research  entities  established  in  the 

Community  and  Israeli  government  bodies  shall  take  account  of  the  provisions  of  this 

Annex. 

2. s 

Hecho en Bruselas, el veinticinco de marzo de mil novecientos  noventa y seis. 

Udfaerdiget i Bruxelles den femogtyvende marts nitten hundrede og seks og halvfems. 

G e s c h e h en 
neunzehnhundertsechsundneunzig. 

zu  B r ù s s el 

am 

f ù nf  u n d z w a n z i g s t en  M â rz 

Eyive  oriq  BpuCeXXeq,  OTIC,  SÎKOOI névre  MapTiou x ^a  ewiaKÔoia  evevf]vra  éÇi 
Téoaepa. 

Done  at  Brussels  on  the  twenty-fifth  day  of  March  in the  year  one  thousand  nine 
hundred and ninety-six. 

Fait à  Bruxelles, le vingt-cinq mars mil neuf cent quatre-vingt-seize. 

Fatto a  Bruxelles, addi' venticinque marzo millenovecentonovantasei. 

Gedaan te  Brùssel, de vijfentwintigste  maart negentienhonderd zesennegentig. 

Feito em Bruxelas, em vinte e cinco de  Marco de mil novecentos e noventa e seis. 

Tehty Brysselissâ kahdentenakymmenentenâviidentenà pâivânâ maaliskuuta vuonna 
tuhatyhdeksànsataayhdeksânkymmentâkuusi. 

Som skedde  i Bryssel den tjugofemte mars nittonhundranittiosex. 

25  ov  *nmy  ."rircnn  ]0"»3  cmnV  'n  o vs  Vo^33 mwn 

.çrcn  o'wri  rnxo  wn  *|Vx  on»  wvwi1? 

zç 

Por la Comunidad  Europea 
For  Det  Europaeiske  Faellesskab 
Fur  die  Europaische  Gemeinschaft 
Ra Tnv EupconatKf) KoivÔTnra 
For the  European  Community 
Pour  la Communauté  européenne 
Per la Comunità  europea 
Voor  de  Europese  Gemeenschap 
Pela Comunidade  Europeia 
Euroopan  yhteisôn  puolesta 
Pâ Europeiska  gemenskapens  vàgnar 

U^V 

rv-^M 

Wiw 

ni^m  nbwan  DW:I 

\ilk\ 

r'^^ 

H 

JOINT  DECLARATION 

"On  the  occasion  of  the  signing  of  the  Agreement  on  scientific  and  technical  cooperation 

the  European  Community  and  the  State  of  Israel  hereby  confirm  that  the  reference  in 

Annex  A,  point  1,1 to  "the  rules  set  out  to  implement  Article  130j  of  the  Treaty 

establishing  the  European  Community"  makes  the  possible  access  by  Israeli  or  Community 

entities  to  results  emanating  from  projects  pursuant  to  other  international  agreements  to 

which  either  the  Community  or  Israel  are  a  party,  contingent  upon  agreement  of  the  other 

party  or  parties  to  such  other  international  agreements". 

For  the  European  Community 

For  the  Government  of  Israel 

*? 

FINANCIAL  STATEMENT 

Title  of  operation 

International  scientific  cooperation:  Agreement  on  scientific  and 
cooperation  with  Israel 

technical 

Budget  heading  involved 

The  travelling  expenses  of  European  experts  and  of  EC  officials  on  mission  will 
be  charged  to  the  specific  budget  headings  of  the  programmes  of  the  Community 
RTD  framework  programme/EC  part. 

Israel's  participation: 
Chapter  60  (revenue),  Articles  B6-451  and  B6-541  (expenditure) 
Israel's  contribution  to the  framework  programme  budget  will  be  proportionate  to 
its  GNP  vis-à-vis  that  of  the  Union  (see  point  7.1.1). 

3. 

Legal  basis 

Decision  1110/94/EC  of  the  Parliament  and  the  Council  of  26  April  1994. 

4. 

Description  of  operation 

4.1 

Specific  objectives 

The  essential  aim  is  to  stimulate  RTD  cooperation  between  the  EC  and  Israel  at 
the  level  of  framework  programme  research  programmes. 

4.2 

Period  covered 

1996-98.  Renewal  arrangements  are  laid  down  in  Article  12  of  the  Agreement. 

5. 

Classification  of  expenditure 

5.1 

Non-compulsory  expenditure 

5.2 

Differentiated  appropriations 

5.3 

Type  of  revenue  involved:  participation  by  a  non-member  country  in  the 
specific  programmes  of  the  framework  programme  in  question. 

29 

6. 

Type  of  expenditure  or  revenue 

-  Expenditure 

Participation  in  shared-cost  actions:  impossible  to  predict  payments  to  Israel 
before  the  Agreement  is  implemented. 

100%  subsidy. 
(Missions  in  Israel  by  Commission  officials  and  European  experts;  organization 
of  workshops,  seminars  and  meetings  in  Europe  and  Israel.) 

-  Revenue 

Participation  by  a  non-member  country 
framework  programme  in  question. 

in  the  specific  programmes  of  the 

7 

Financial  impact 

7.1 

Method  of  calculating  total  cost  of  operation  (estimate) 

7.1.1 

Israel's  contribution  to  the  EC  budget  (estimate) 

GDP  Israel  (1993)1  = 
GDP  EUR15  (1993)2  = 
%  ratio  -  1.05% 

ECU  54.628  billion 
ECU  5  184  billion 

EC  budget  4th  f.p:  1996-98  (3  years):  ECU  9.149  billion2 

per  year 

1996  =  ECU  2.837  billion 
1997  =  ECU  3.166  billion 
1998  =  ECU  3.146  billion 

1.05%  of  which  =  ECU  96.1  million  (1996-98) 

7.1.2  Expenditure  on  management  of  the  Agreement  (estimate) 

(a) 

Travel  expenses  per  year 
EC  experts'  missions  to  Israel 
within  the  framework  of  16  programmes  covering  the  four  activities: 

Figures  provided  by  the  International  Bank  for  Reconstruction  and  Development. 
As  a  result  of  the  enlargement  and  in  response  to  the  Common  Position  of  the  Council  of 
30.11.1995, the  Commission  has  submitted  a Communication  to  Parliament  to  mark  its  agreement 
to 
(1994-1998); 
SEC(95)2117  final  COD(95)0092  of  7.12.1995. 

increase  of  6,5  %  of 

framework  programme 

the  proposed 

the  4th 

3o 

16  sectors  x  3  projects  per  sector  x  2  EUR  experts  per  project  = 
96  experts/7  nights 

prices  per  mission: 
1  return journey  (around  ECU  1 800) 
hotel  expenses  (ECU  100 x  7) 
+  ECU  250  per  diem  x  7 

ECU  1 800 
ECU 
700 
ECU  1 750 

Total 

ECU  4  250 

total  cost  for  96  missions 

Total  ECU  408  000 

+  10%> margin 

ECU  448  800 

(b) 

EU officials'  missions to Israel  (DGs I, III, VI, VII, XII, XIII, XIV, XVII) 

16 missions  per  year  (management  of  the  agreement  as  a  whole) 
(2  per  DG) 

+  16 missions  per  year  (1  official/programme) 

total:  32  missions  per  year 

- 

return journey  Brussels-Tel  Aviv 
cost  business  class  Oct  95: BF  70 470  = ECU  1 815* x  32 
ECU  58  080 
frate  in  Sep  95: ECU  1 = BF  38.8) 

-  nights  in  hotel:  3 nights  (ECU  100/night)  =  ECU  300  x 3£CU  9 600 
ECU  67  680 
+  10% margin 
ECU  74  450 

Total 

Total 

2a +  2b  = 

ECU  448  800 

+ 

ECU  74  450 

Total  ECU  523  250 

(c)  Workshops/seminars 

2/year  (estimate)BF  300  000:  38.8  =  7 732  +  10% margin  = ECU  8 505 

Total 

2(a)(b) 
(c) 

ECU  523  250 
8 505 
ECU 

ECU  531  755  or  ECU  0.53  million/year 

14 

Overview: 

1996  budget  (ECU  million  -  constant  ecus  1995)  1997  1998 

idem 

idem 

Expenditure: 
Experts'  missions 
EC  officials'  missions 
Workshops 

0.53 
0.448 
0.074 
0.008 

TOTAL 

0.53 

7.2 

Itemized  breakdown of  cost 

Israel's financial contribution  will be allocated to the various specific  programmes 
of  the  framework  programme  in  proportion  to  their  budgets . 

7.3 

Indicative  schedule  of  appropriations  (see  7.1.2) 
(Amounts  expressed  in  constant  ECU  million  1995) 

Payment  appropriations 

1996 

1997 

1998 

1999+ 

TOTAL 

Commitment  appropriations 

1996 

1997 

1998 

TOTAL 

0.40 

0.10 

0.40 

0.53 

0.53 

0.53 

1.590 

0.40 

0.50 

0.03 

0.10  . 

0.40 

0.53 

0.03 

0.13 

0.16 

0.53 

0.53 

0.53 

1.590 

8. 

Fraud prevention  measures 

There  are  many  administrative  and  financial  controls  at  each  stage  of  the  signature  and 
implementation  of  research  contracts.  Among  these  controls  are  the  following  : 

At  the  stage  prior  to  the  conclusion 

Initial selection of proposals based on the scientific  merit of the project and on the 
realism  of  research  costs  relative  to  the  content,  duration  of  the  project  and  its 
potential  implications. 

Analysis of financial  details submitted by the proposers in the contract  negotiation 
form. 

3e 

After  signature  of  the  contract 

Examination  of  expenditure  at  a  number  of  levels  (financial  officer,  scientific 
officer)  before  payment. 

Internal  audit  performed  by  the  Financial  Controller. 

On-site  audit,  which  should  allow  the  detection  of  errors  and  other  irregularities 
by  examination  of  supporting  documents.  In  order  to  improve  the  efficiency  of 
these  controls,  the  Commission  services  have  established  an  audit  unit  which 
coordinates  all  controls  taking  place.  These  controls  are  carried  out  either  by 
members  of  this  audit  unit  or  by  audit  firms  with  which  the  Commission  has 
concluded  a  contract,  under  the  supervision  of  personnel  from  this  audit  unit. 

On  the  spot  inspections  made  by  the  Financial  Controller  of  the  Commission  and 
by  the  Court  of  Auditors  of  the  European  Union. 

Elements  of  cost-effectiveness  analysis 

9.1  Specific  objectives,  target  population 

Specific  objectives: 

The  Agreement  should  enable  Israel  and  the  Community  to  derive  mutual 
benefit  from  the  scientific  and  technical  progress  achieved  through  their 
reciprocal  research  programmes,  with  participation  by  the  Israeli  scientific 
community  and industry  in Community  research  programmes  and  independent 
and  non-subsidized  participation 
in  Israeli  research  activity  by  bodies 
established  in  the  Community. 

Beneficiaries  in  the  EU  and  Israel  will  be the  scientific  communities,  industry 
and  the  population  generally,  thanks  to  the  direct  and  indirect  impact  of 
cooperation. 

9.2  Grounds  for  the  operation 

Community  funding  is  indispensable  as  the  planned  cooperation  forms  part 
of  the  implementation  of  the  framework  programme,  including  the  budget 
section:  participation  by  Israel  in  the  specific  programmes  and  administrative 
expenditure  by  the  European  side  (missions  by  experts  and  EU  officials; 
organization  of  seminars  in  the  EC  and  Israel). 

Budgetary  arrangements  will  be  based  on  the  type  of  cooperation  proposed 
(association  of  a non-member  country  in  specific  programmes  of  Community 
research);  the  arrangements  are  similar  to  those  used  for  research  programme 
association  agreements  between  the  Community  and  the  EFTA  States. 

33 

one general  element  of  uncertainty  is the  extent  to  which  Israel  will  actually 
take  part  in  the  specific  programmes  and  how  this  will  affect  the  budget. 

93  Monitoring and evaluation  of  the  operation 

The  cooperation  Agreement  will  be  regularly  evaluated  by  the  relevant 
Commission  departments  and  will  be  subject  to  one  joint  Community-Israel 
evaluation  each  year.  Evaluation  will  cover: 

(a)  Performance  indicators: 

number  of  proposals  put  forward  by  Israel  per  specific  programme 
compared  with  the  number  of  proposals  selected  for  funding  under  the 
programme; 
number  of proposals put forward  by Israel  compared  with  the number  of 
proposals  selected  for  funding  under  the  framework  programme; 
number  of  proposals  put  forward  under  the  specific  programmes  of  the 
framework  programme  compared  with  the  relative  share  (1%)  of  Israel's 
participation  in  those  programmes; 
number  of  Israeli  proposals  selected  for  funding 
in  the  specific 
programmes  of  the  framework  programme  compared  with  its  relative 
participation  in  those  programmes. 

(b)  Gathering  information: 

On  the  basis  of  data  on  the  specific  programmes  of  the  framework 
programme. 

(c)  Overall  evaluation: 

At the end of the 4th framework  programme the Commission  will  evaluate all 
cooperation  activities  covered  by  the  Agreement. 

(d)  Corrections: 

Through  information  to  the  relevant  partners  on  both  sides  on  practical 
arrangements  for  taking  part  in  the  specific  programmes  of  the  framework 
programme.  The  information  will  be  passed  on  in  accordance  with  the 
recommendations  of  the  Joint  Cooperation  Committee. 

10. 

Impact on administrative  expenditure 

The  Commission  is  not  requesting  any  additional  posts  for  the  management 
of  the  Agreement. 
No officials  are being specifically  assigned to manage the Agreement.  It will 
be  managed  by  the  staff  authorized  for  the  fourth  framework  programme. 

3V 

ISSN 0254-1475 

COM(96) 205  final 

DOCUMENTS 

EN 

11  15 

Catalogue number  :  CB-CO-96-215-EN-C 

ISBN 92-78-03890-3 

Office  for Official Publications of the European Communities 

L-2985 Luxembourg 

^r