Amended proposal for a European Parliament and Council Decision concerning the 5th framework programme of the European Community for research, technological development and demonstration activities (1998-2002)
Date: 1997-08-11
Institutions: European Commission
Subjects: EU programme, EU research policy, research and development, technological change

COMMISSION OF THE EUROPEAN  COMMUNITIES 

Brussels,  11.08 1997 
COM(97) 439 final 

97/0119 (COD) 
97/0120 (CNS) 

Amended proposal for a 

EUROPEAN PARLIAMENT AND COUNCIL DECISION 

CONCERNING THE 5TH FRAMEWORK PROGRAMME OF THE 
EUROPEAN COMMUNITY FOR RESEARCH,  TECHNOLOGICAL 
DEVELOPMENT AND DEMONSTRATION ACTIVITIES 
(1998-2002) 

Amended proposal for a 

COUNCIL DECISION 

CONCERNING THE 5TH FRAMEWORK PROGRAMME OF THE 
EUROPEAN ATOMIC ENERGY COMMUNITY  (EURATOM) FOR 
RESEARCH AND TRAINING ACTIVITIES 
(1998-2002) 

(presented by the Commission pursuant to Article  189a (2) of the EC Treaty and 
pursuant to Article  119 (2) of the EAEC Treaty) 

Explanatory  Memorandum 

On  30  April  the  Commission  adopted  proposals  for  Decisions  concerning  the  5th 
Framework  Programme  for  research  and  technological  development  for  the  period 
1998-2002,1 including the percentage breakdown  of the  overall budget  but not  the  actual 
total amount itself expressed  in ECU. The proposals were sent to Parliament  and Council 
on 2 May  1997.  It was then possible to begin to  examine the texts, which  are  subject  to 
the co-decision procedure, as planned in spring 1997. 

The  Explanatory  Memorandum  to  the  proposals  of  30 April  indicated  that  "the 
Commission will supplement the proposal with an overall figure for financing  as soon as 
it adopts its proposal  on the next financial framework  immediately after the IGC ends in 
July 1997. However, the Commission considers that the average percentage  of EU GNP 
reached  by  the  4th  Framework Programme  between  1995 and  1998 must  represent  a 
minimum for  the  overall funding  of  the  5th  Framework  Programme  expressed  as  a 
percentage  of  average  forecast  GNP  between  1999  and  2002"  This  minimum 
corresponds to 0.048% of the GNP. 

In "Agenda  2000", which it  adopted  on  15 July,2 the  Commission  advocated  an increase 
faster  than  GNP  growth  for  certain  internal  policy  programmes  which  have  been  given 
priority, including research. 

As a result, the proposals for Decisions concerning the 5th Framework Programme  should 
now be supplemented with an overall figure for funding  marking a real increase  compared 
with simply maintaining the percentage of GNP. 

The  Commission  proposes  that  the  increase  should  be  3%, corresponding  to  an  overall 
amount of ECU  16.3 billion, based on GNP forecasts. 

These  proposals  complete  those  adopted  in  April  1997  with  the  actual  amounts.  This 
operation  doesn't  alter  the  substance  of  the  proposals.  The  overall  amount  is  divided 
between  the  two  framework  programmes  for  the  EC and  Euratom  respectively,  and 
according to the actions and specific programmes proposed in order to implement them, in 
line  with  the  percentage  breakdown  fixed  in  the  Explanatory  Memorandum  to  the 
30 April 1997 communication. 

1  COM(97)142 final, 30.4.1997. 

2  COM(97)2000, 15.7.1997. 

AMENDED PROPOSAL FOR A EUROPEAN  PARLIAMENT AND COUNCli 
DECISION 

CONCERNING  THE  FIFTH  FRAMEWORK  PROGRAMME  OF THE 
EUROPEAN  COMMUNITY  FOR RESEARCH,  TECHNOLOGICAL 

DEVELOPMENT  AND DEMONSTRATION  ACTIVITIES 

(1998-2002) 

97/0119 (COD) 

On 30 April  1997 (OJ 97/C  173/11 - COM(97)142 final - 97/0119 COD) the Commission 
adopted  a  proposal  for  a  Decision  concerning  the  5th  Framework  Programme  for  the 
European  Community.  The  actual  amounts  of funding  are not  given  in this proposal.  In 
conformity  with  the  guidelines  set  out  in  Agenda  2000,  the  Commission's  proposal  is 
hereby supplemented  as follows. 

1. The square brackets in Article 2(1) are replaced by the figure "14833". 

2.Annex III is replaced by the following: 

"- Annex III: 

-  First  activity  (Research,  technological 
development 
demonstration 
and 
programmes) 
-  Second  activity  (Cooperation  with  third 
countries and international  organizations) 
-  Third 
optimization of results 

(Dissemination 

activity 

and 

Fourth  activity  (Stimulation  of  the 

training and mobility of researchers) 

ECU million 
(current prices) 

117752 

4912 

3502 

14022 

MAXIMUM OVERALL AMOUNT 

148331 

Indicative breakdown between the themes of the first activity 

ECU million 

-  Unlocking the resources of the living 
world and the ecosystem 
-  Creating a user-friendly  information 
society 
-  Promoting competitive and sustainable 
growth 

39252 

39252 

39252 

11775' 

1  Of which ECU 815 million for the JRC. 
2  The amount for direct actions of the JRC excluded. 

AMENDED PROPOSAL FOR A COUNCIL DECISION 

CONCERNING  THE FIFTH FRAMEWORK  PROGRAMME  OF THE 
EUROPEAN ATOMIC  ENERGY  COMMUNITY  (EURATOM) FOR  RESEARCH 

AND TRAINING ACTIVITIES 
(1998-2002) 

(.../.../EURATOM) 

97/0120 (CNS) 

On 30 April  1997 (OJ 97/C  173/12 - COM(97)142 final - 97/0120 CNS) the  Commission 
submitted  a proposal  for  a Council Decision  concerning  the  5th  Framework  Programme 
for  the  European  Atomic  Energy  Community.  The  actual  amounts  of  funding  are  not 
given  in  this  proposal.  In  conformity  with  the  guidelines  set  out  in  Agenda  2000,  the 
Commission's proposal is hereby supplemented as follows: 

1. The square brackets in Article 2(1) are replaced by the figure "1467": 

2.  The square brackets in footnote  10 are replaced by the figure "326". 

1. 

TITLE  OF THE OPERATION 

FINANCIAL  STATEMENT 

Proposal  for  a  Decision  of  the  European  Parliament  and  of  the  Council  concerning  the  Fifth 
Framework  Programme  of the  European  Community  for  research,  technological  development  and 
demonstration  activities (1998-2002), hereinafter  referred to as "the 5th Framework  Programme" 

2. 

BUDGET HEADING  CONCERNED 

Sub-section B6 

3. 

LEGAL BASIS 

Article  130i of the EC Treaty 

4.  DESCRIPTION OF THE OPERATION 

4.1 

General  Objective of the Operation 

The  objectives  of  the  Community's  research  and  technological  development  policy  reflect  the 
challenges which the Community must meet and the opportunities which it must seize relating, as a 
matter of priority, to the problems of society, industrial competitiveness, job creation, quality of  life, 
globalisation  of  knowledge,  contributing 
the 
Community's  other policies (in line with Article  13Of, paragraph  1, of the EC Treaty), and the  role 
of the Community in the world as a focal point of scientific and technological excellence. 

to  the  development  and 

implementation  of 

In this context, the planned operation is based on six themes: 

•  Unlocking the resources of the living world and the ecosystem; 
•  Creating a user-friendly  information  society; 
•  Promoting competitive and sustainable growth; 
•  Confirming the international  role of Community research; 
• 
• 

Innovation and participation of small and medium-sized enterprises; 
Improving human potential. 

4.2 

Period covered by the operation 

1998-2002 

The arrangements for renewal of the operation are provided for in Article  130i of the EC Treaty. 

5.  CLASSIFICATION  OF THE EXPENDITURE AND REVENUE 

5.1 
5.2 
5.3 

NCE 
DA 
Type of revenue involved: 

Certain Associated  States will contribute to the financing of the 5th Framework Programme. 

In  accordance  with  Articles  92  and  96  of  the  Financial  Regulation,  the  JRC  may  benefit  from 
revenue  from  various  types  of  competitive  activities  or  from  other  services  provided  for  outside 
bodies. 

In accordance  with  Article  27 of the Financial  Regulation,  certain  revenue may be available  for  re 
use. 

6„  TYPE OF EXPENDITURE OR REVENUE 

The  European  Community  will  contribute  financially  to  research  and  technological  atvelcpaseni 
activities,  including  demonstration  activities:  hereinafter  referred  to as  "indirect  RTD  actions'",  -.. 

addition,  it  will  carry  out  directly  research  and  development  activities,  hereinafter  referred  to  as 
"direct RTD actions". 

1. Indirect RTD actions 

The  indirect  RDT  actions  will  comprise  five  categories:  shared-cost  actions,  training  fellowships, 
support  for  networks,  concerted  actions  and  accompanying  measures.  Shared-cost  actions  will  be 
the main mechanism for implementing the programmes. 

The rate of financial  participation by the Community in these actions will be as follows: 

a) Shared-cost actions 

- Research  and technological development projects, demonstration projects,  integrated projects: 

Research  and technological  development  projects  will be financed  in principle  at a  level  of 50% of 
the  eligible  costs.  In  the  special  case  of  legal  entities  which  do  not  keep  analytical  accounts,  the 
eligible additional costs generated as a result of the research will be financed  100%. 

Demonstration projects (projects designed to prove the technical  viability of technologies and which 
cannot  be  commercialised  directly)  will  be  financed  in  principle  at  a  level  of  35% of  the  eligible 
costs. 

Integrated  projects  (projects with both a  research  and technological  development  component  and  a 
demonstration component) will be financed at a level corresponding to the weighted average of the 
levels applicable to the two components. 

-  Support for  access to research infrastructures: 

the  optimum  utilisation  of 
The  Community  funding  granted  as  a  contribution 
infrastructures  will be up to 100% of the additional eligible costs connected with receiving teams of 
Community researchers and making the facility available. 

towards 

-  Technology stimulation projects  to encourage and facilitate  SME participation  in RTD activities: 

"Co-operative research" activities will be financed  up to 50% of the eligible project costs. 

"Collaborative  research" activities will be financed  in the form  of an  award  covering  up to  75% of 
the  eligible  costs  of  the  exploratory phase  of  an  RTD  activity,  including  project  validation  and 
preparation, a feasibility  study and partner search, over a period not exceeding 12 months. 

b) Training fellowships: 

Community funding  will cover up to 100% of the eligible costs of the fellowship  and a contribution 
to the eligible costs of the host institution when it is located in the Community. 

c) Support for networks: 

Community  funding  will  cover  up  to  100% of  the  additional  eligible  costs  of  coordinating  and 
implementing the thematic networks and up to 100% of the additional eligible costs connected with 
setting up and maintaining the research training networks. 

d) Concerted actions: 

Community  funding  will  cover  up  to  100%  of  the  additional  eligible  costs  connected  with 
concertation. 

e) Accompanying measures: 

Community funding may be up to 100% of the eligible costs of the measures. 

5 

In  the  Decisions  adopting  the  specific  programmes  implementing  the  5th  Framework  Programme 
there  can be  no  derogations  from  the  financial  participation  rates  set  above,  with  the  exception  of 
duly justified  special  cases, for  the activity concerned.  The  Decisions  may  spell  out  in  more  detail 
the indirect RTD actions described above, supplement them or subject  them to additional  conditions 
or limitations. 

2. Direct RTD actions 

The direct RTD actions to be carried out by the Joint Research Centre (JRC) will comprise  research 
activities  of  an  institutional  character  and  scientific  and  technical  support  activities  of  an 
institutional  character.  The  Community  funding  will  normally  be  100% of  the  costs  of  the  direct 
RTD  action. 

3.  Any  Council  Decisions  taken  pursuant  to  Article  130o of the  EC Treaty  will  lay down,  where 
necessary, the rules for financial  participation by the Community. 

7. 

FINANCIAL IMPACT 

7.1 

Method of calculating total cost of operation 

The  5th Framework  Programme  fixes  the overall  maximum  amount  and  its breakdown  among  the 
different  Community activities.  It also details the indicative breakdown between the three themes of 
the  first  activity.  These  amounts  cover  the  financing  of  research  activities,  staff  costs  and 
administrative expenditure. 

7.2 

Itemised breakdown of cost 

Indirect actions 

First activity 

11775 MECU 

Unlocking the resources of the  living v*>rld and the  ecosystem 

3925  MECU 

Creating a user-friendly information  society 

Promoting competitive  and sustainable growth 

3925  MECU 

3925  MECU 

Second activity 

Third activity 

Fourth activity 

Direct actions 

JRC 

491 MECU 

350 MECU 

1 402 MECU 

815 MECU 

MAXIMUM OVERALL AMOUNT 

14 833 MECU* 

*  As  an 

indication, 

the  reference  amount  of 

European  Atomic  Energy  Community 
The total for the  1998-2002 Framework Programmes will be ECU  16 300 Million. 

the  5th  Framework  Programme  of 

the 
(EURATOM)  will  be  ECU  1  467  Million. 

7.3 

Indicative schedule of  appropriations 

The  effective  implementation  of the  5th Framework  Programme  requires  a  scheduling  of the  funds 
available for  each year.  In the following  table the funds  for  each year  in  the period  1998-2002  are 
shown (the definitive  amounts will be fixed by the Budgetary Authority). 

YEAR 

1998 

1999 

2000 

2001 

2002 

TOTAL  1998-2002 

REAL AMOUNTS 

1998-2002 (MECU CURRENT PRICES) 
5th Framework  Programme 
P.M. 

3276 

3640 

3913 

4004 
14 833* 

* As an indication, the reference amount of the 5th Framework Programme of the European  Atomic 
Energy  Community  (EURATOM)  will  be  ECU  1  467  Million.  The  total  for  the  1998-2002 
Framework Programmes will be ECU  16 300 Million. 

8.  ANTI-FRAUD MEASURES  PLANNED 

There  is  a  whole  range  of  administrative  and  financial  checks  at  all  stages  of  the  procedure  for 
awarding and executing research contracts, including the following: 

•  Prior to conclusion of the contract: 

0 

Initial  selection of proposals on the basis of the scientific  value of the project  and  of an 
assessment as to whether the research  costs quoted are realistic in relation  to the  nature 
of the research, its duration and its potential  impact; 

0  Analysis of the financial  data transmitted  by the  proposers  on the  contract  negotiation 

form; 

•  After  the contract has been signed: 

0  Scrutiny of statements of expenditure prior to payment,  carried out at two levels (by the 

scientific  officer  and the financial  officer); 

0 

Internal audit by the Financial  Controller; 

0  On-the-spot  checks  enabling  the  detection  of  errors  or  other  irregularities  through  an 
examination  of  the  supporting  documents. 
In  order  to  make  these  checks  more 
effective,  the  Commission's  services have set up an audit unit which  coordinates  all  the 
checks performed.  These checks are either  carried  out by members  of the  audit  unit  or 
entrusted  to  auditing  companies  with  which  the  Commission  has  concluded  contracts, 
under the supervision of officials  from  the audit unit; 

0  Surprise  inspection  by  the  Commission's  Financial  Controller  and  by  the  Court  of 

Auditors of the European Union. 

BASIS OF COST-EFFECTIVENESS  ANALYSIS 

9.1 

Specific  and quantifiable  objectives;  target  population 

The specific  objectives  of each of the six themes listed in point 4.1 are as follows: 

Unlocking  the  resources  of  the  living  world  and  the  ecosystem:  to  help  increase  knowledge  and 
develop technologies in the fields of the living world and the environment  with a view to improving 
the quality of life and health and addressing environmental problems. 

Creating  a  user-friendly  information  society:  to  develop  and  use  the  technologies  needed  to  fully 
realise  the  potential  of the  information  society,  thus  opening  up  the  possibility  of  a  wide  range  of 
activities  for  both  individuals  and  companies  of  the  Community,  in  the  fields  of  trade,  work, 
transport, environment, education and training,  health and culture. 

Promoting  competitive  and  sustainable  growth:  to  produce  and  disseminate  the  knowledge  and 
technologies  needed  to  design  and  develop  processes  and  produce  "clean",  high-quality  products 
that  will  be competitive  on  tomorrow's  market;  such  development  will  also  extend  to  the  fields  of 
transport  and  energy.  This goes  hand  in  hand  with  the  activities  in  the field of nuclear  energy  set 
out in the 5th Framework  Programme of the European  Atomic Energy Community (EAEC). 

Confirming  the  international  role  of  Community  research:  to  contribute  to  the  implementation  of 
the  Community's  external  policy,  especially  towards  the  Central  and  Eastern  European  accession 
candidates,  and  also  to  help  the  Community  establish  industrial  co-operation  and  open  up  new 
markets. 

Innovation  and participation  of SMEs: to promote  and facilitate  the exploitation  of  research  results 
and  foster  the  creation  of  innovative  enterprises;  to  provide  small  and  medium-sized  enterprises 
with  easy  access  to the  advanced  technologies  which  they  need,  and  to the  possibilities  offered  by 
the Community's  research programmes. 

Improving  human  potential:  to  preserve  and  help  develop  the  Community's  knowledge  potential 
through greater  support for  the training  and  mobility  of researchers,  through  better  use of  research 
infrastructure  and  through  the  mobilisation  of  social  and  economic  science  in  order  to  identify 
economic and social trends and needs, both current and future. 

The  5th  Framework  Programme  will  be  organised  on  the  basis  of  "key  actions",  activities  for 
research  and  development  of generic  technologies,  activities  in  support  of  research  infrastructures 
and  actions  undertaken  in  the  context  of activities  II,  III  and  IV  of  the  Treaty  (including  specific 
activities  and  co-ordination  activities),  with  the  aim  of  ensuring  the  consistency  of  equivalent 
activities carried out under the specific programmes  in the context of the first  activity of the Treaty. 

The  Joint  Research  Centre  is  the  scientific  and  technical  body  which  the  Commission  needs  to 
perform  the tasks that it is empowered to conduct.  The scientific  and technological  objectives  of its 
activities  are  located  more  especially  in  areas  requiring  impartial  and  independent  expertise  at  a 
European level and in areas related to the objectives of the Community's main policies. 

Target  population  of  this  operation:  enterprises  (in  particular  SMEs),  research  centres  and 
universities. 

9.2 

Justification of the operation 

Under Article  130f of the EC Treaty, by this new action the Community will continue to  strengthen 
the  scientific  and  technological  bases  of  Community  industry  and  encourage  it  to  become  more 
competitive  at  international  level,  and  to  promote  all  the  research  activities  deemed  necessary  by 
virtue of other chapters of the Treaty. 

This continuation  is proposed following an assessment,  in line with the  SEM 2000 initiative, of the 
actions  of  the  past  five  years.  Over  170  independent  experts  were  involved  in  this  assessment, 
which was carried out during the second half of  1996 and the beginning of  1997. 

The  findings  of  the  assessment  are  that  overall  the  programmes  have  achieved  their  objectives, 
notably in financing  a  range  of high-quality  actions.  On  a  global  level,  therefore,  the  Framework 
Programme  has  a  significant  impact  on  research  activities  in  the  Member  States,  and  fosters  the 
development of a very large number of cross-border collaborative networks. 

It  was  also  highlighted,  however,  in  the  conclusions  of  the  five-year  assessment  panel,  that  the 
Framework Programme has been transformed over the years into a general framework for a range of 
activities on topics which are too numerous and too dispersed, and that it needs to be adapted to the 
reality of social, economic and  scientific  developments.  There  is therefore  need to concentrate  the 
means  available  on  a  more  limited  number  of  themes  with  clearly-defined  objectives,  and  of  a 
fundamentally  socio-economic nature. 

This  Proposal  for  a  new operation  has  followed  the  above  recommendation,  notably  in  proposing 
that efforts  be concentrated on six major themes (see item 9.1). 

9.3 

Monitoring and evaluation of the  operation 

The  form  and frequency  of the  process  of evaluation  will  be  such  as  to  enable  the  Commission  to 
respond to the requirements under  Article  5 of the  5th  Framework  Programme  and  to evaluate  the 
specific programmes. 

The  Commission  will  examine  each  year,  with  the  help  of  appropriately  qualified  independent 
experts,  the  implementation  of  the  Framework  Programme,  in  the  light  of  the  criteria  set  out  in 
particular  in Annex  I of the  5th  Framework  Programme.  It will  assess,  in  particular,  whether  the 
objectives, priorities and financial  resources  are still  appropriate  to the  changing situation.  Where 
appropriate, it will submit proposals to adapt or supplement the Framework Programme. 

In  addition, before  submitting  its proposal for  a  6th  Framework  Programme,  the  Commission  will 
have  an  external  assessment  conducted  by  high-level  independent  experts  on  the  management  of, 
and  progress  made  in,  Community  actions  carried  out  during  the  five  years  preceding  the 
assessment,  in  the  light  of  the  criteria  set  out  in  particular  in  Annex  I  of  the  5th  Framework 
Programme.  The  Commission  will communicate  the conclusions  of this  assessment,  accompanied 
by  its  comments,  to the  European  Parliament,  the  Council, the  Economic  and  Social  Council  and 
the Committee of the Regions. 

9.4 

Coherence with financial  programming 

Annual  appropriations  will  be  authorised  by  the  Budgetary  Authority  within  the  limits  of  the 
financial  perspective and subject to the overall  maximum amount provided for  in the EC Treaty  for 
the Framework Programme, i.e. ECU  14 833 Million. 

10.  ADMINISTRATIVE  EXPENDITURE 

In the spirit of lean management of resources, staff costs and administrative expenses will be closely 
scrutinised  in the  light  of the  new structure  of  the  5th  Framework  Programme.  This  examination 
will  take  place  when  the  Decisions  adopting  the  specific  programmes  implementing  the  5th 
Framework Programme are being taken. 

1. 

TITLE OF THE OPERATION 

FINANCIAL STATEMENT 

Proposal  for  a  Council  Decision  concerning  the  Fifth  Framework  Programme  of  the  European 
Atomic  Energy  Community  (EURATOM)  for  research  and  training  activities  (1998-2002), 
hereinafter  referred to as "the 5th Framework Programme". 

2. 

BUDGET HEADING  CONCERNED 

Sub-section B6 

3. 

LEGAL BASIS 

Article 7 of the EAEC Treaty 

4.  DESCRIPTION OF THE OPERATION 

4.1 

General Objective of the Operation 

Research in the field of nuclear energy by the European  Atomic Energy Community (EAEC)  must 
reflect  the need to develop safe and acceptable energy systems that  respect environmental  standards 
and are competitive in terms of production  costs, the general  objective being to make  an  important 
contribution  to the  policy  of diversifying  energy  supply, particularly  in  developing  the  safety  and 
security of nuclear energy systems with a view to strengthening, in the short and medium  term, the 
Community's industrial competitiveness. 

4.2 

Period covered 

1998 - 2002 

The  arrangements  for  renewal  of  the  operation  are  linked  to  those  of  the  research  and  training 
programmes provided for in Article 7 of the EAEC Treaty. 

5.  CLASSIFICATION OF THE EXPENDITURE AND REVENUE 

5.1 
5.2 
5.3 

NCE 
DA 
Type of revenue involved: 

Associated States may contribute to the financing of the 5th Framework Programme. 

In  accordance  with  Articles  92  and  96  of  the  Financial  Regulation,  the  JRC  may  benefit  from 
revenue  from  various  types  of  competitive  activities  or  from  other  services  provided  for  outside 
bodies. 

In accordance with Article 27 of the Financial  Regulation, certain revenue may be available for  re 
use. 

6.  TYPE OF EXPENDITURE OR REVENUE 

The  European  Atomic  Energy  Community  will  contribute  financially  to  research  activities, 
including demonstration activities, and training activities, hereinafter  referred  to as "indirect RTDT 
actions"; in addition, it will carry out directly research  activities and training  activities,  hereinafter 
referred to as "direct RTDT actions". 

10 

1.  Indirect RTDT actions 

The  indirect  RTDT actions  will  comprise five categories:  shared-cost  actions, training  fellowships, 
support  for  networks, concerted  actions  and  accompanying  measures.  Shared-cost  actions  will  be 
the main mechanism  for  implementing the programmes.  The  rate of financial participation  by the 
Community in these actions will be as follows: 

à) Shared-cost actions 

-Research  and technological development projects,  demonstration projects,  integrated projects: 

Research and technological development projects will be financed in principle at a  level  of 50% of 
the  eligible  costs.  In  the  special  case of legal  entities  which  do  not  keep  analytical  accounts,  the 
eligible additional costs generated as a result of the research will be financed 100% 

Demonstration projects (projects designed to prove the technical viability of technologies and which 
cannot  be  commercialised  directly)  will be financed  in  principle  at  a  level  of  35% of  the  eligible 
costs. 

Integrated projects  (projects  with both  a research  and technological  development  component  and  a 
demonstration component) will be financed at a level corresponding to the weighted average of the 
levels applicable to the two components. 

-  Support for  access to research infrastructures: 

The  Community  funding  granted  as  a  contribution 
the  optimum  utilisation  of 
infrastructures  will be up to 100% of the additional eligible costs connected with receiving teams of 
EURATOM researchers and making the facility available. 

towards 

b) Training fellowships: 

Community funding  will cover up to 100% of the eligible costs of the fellowship and a  contribution 
to the eligible costs of the host institution when it is located in the Community. 

c) Support for networks: 

Community  funding  will  cover  up  to  100% of  the  additional  eligible  costs  of  co-ordinating  and 
implementing the thematic networks and up to 100% of the additional eligible costs connected with 
setting up and maintaining the research training networks. 

d) Concerted actions: 

Community  funding  will  cover  up  to  100%  of  the  additional  eligible  costs  connected  with 
concertation. 

e) Accompanying measures: 

Community funding  may be up to 100% of the eligible costs of the measures. 

In  the  Decisions  adopting the  specific  programmes  implementing  the  5th  Framework  Programme 
there can be no  derogations  from  the  financial  participation  rates  set  above, with  the  exception  of 
duly justified  special  cases for  the activity  concerned.  The  Decisions  may  spell  out  in  more  detail 
the  indirect  RTDT  actions  described  above,  supplement  them  or  subject  them  to  additional 
conditions or limitations. 

2. Direct RTDT  actions 

The  direct  RTDT  actions  to be  carried  by the  Joint  Research  Centre  (JRC)  will  comprise  research 
activities  of  an  institutional  character  and  scientific  and  technical  support  activities  of  an 

11 

institutional  character.  The  Community  funding  will normally  be  100% of  the  costs  of  the  direct 
RTDT action. 

3.  The  rules  for  participation  by the  Community  in  the  JET  Joint  Undertaking,  ITER  activities, 
Contracts  of  Association  and  in  certain  tasks  which  can  only  be  performed  by  industry  will  be 
specified in the corresponding research and training programme. 

7. 

FINANCIAL IMPACT 

7.1 

Method of calculating total cost of operation 

The  5th Framework  Programme fixes the  reference  amount.  This  amount  covers  the  financing  of 
research activities, staff costs and administrative expenditure. 

7.2 

Itemised breakdown of cost 

Indirect 
actions 
Direct actions 

Fusion + Fission 

JCR 

REFERENCE AMOUNT 

1141 MECU 

326 MECU 

1467 MECU* 

*  As  an 

indication, 

the  5th  Framework  Programme 
of  the  European  Community  will  be  ECU  14  833  Million.  The  total  for  the  1998-
2002 Framework Programmes will be ECU  16 300 Million. 

the  maximum  overall  amount  of 

7.3 

Indicative schedule of appropriations 

The effective  implementation  of the  5th Framework Programme  requires  a scheduling of the  funds 
available for  each year.  In the following table the funds  for  each year  in the period  1998-2002  are 
shown (the definitive amounts will be fixed by the Budgetary Authority). 

YEAR 

1998 

1999 

2000 

2001 

2002 

TOTAL  1998-2002 

| 

p j g^  A M O U N TS 

1998-2002 (MECU CURRENT PRICES) 
5th Framework Programme 
P.M. 

324 

360 

387 

396 
1467 MECU* 

*  As  an 

indication, 

the  maximum  overall  amount  of  the  5th  Framework  Programme 
of  the  European  Community  will  be  ECU  14  833  Million.  The  total  for  the  1998-
2002 Framework Programmes will be ECU  16 300 Million. 

12 

8.  ANTI-FRAUD  MEASURES PLANNED UNDER THE  OPERATION 

There  is  a  whole  range  of  administrative  and  financial  checks  at  all  stages  of  the  procedure  for 
awarding and executing research contracts, including the following: 

•  Prior to conclusion of the contract: 

0 

Initial  selection of proposals on the basis of the scientific  value of the project  and  of an 
assessment as to whether the research  costs quoted are realistic in relation  to the  nature 
of the research, its duration and its potential impact; 

0  Analysis  of the  financial  data transmitted  by the proposers  on  the  contract  negotiation 

form; 

•  After  the contract has been signed: 

0  Scrutiny of statements of expenditure prior to payment, carried out at two levels (by the 

scientific officer  and the financial  officer); 

0 

Internal audit by the Financial  Controller; 

0  On-the-spot  checks  enabling  the  detection  of  errors  or  other  irregularities  through  an 
examination  of  the  supporting  documents. 
In  order  to  make  these  checks  more 
effective,  the Commission's  services  have set up an audit unit  which coordinates all  the 
checks performed.  These checks are either  carried out by members  of the audit  unit  or 
entrusted  to auditing  companies  with  which  the  Commission  has  concluded  contracts, 
under the supervision of officials  from  the audit unit; 

0  Surprise  inspection  by  the  Commission's  Financial  Controller  and  by  the  Court  of 

Auditors of the European Union. 

9. 

BASIS OF COST-EFFECTIVENESS  ANALYSIS 

9.1 

Specific  and quantifiable  objectives; target  population 

In  order  to  achieve  the  general  objective  as  stated  in  point  4.1  above,  the  5th  Framework 
Programme  will  be  implemented  by  research  and  training  programmes  of  both  a  thematic  and 
horizontal nature (co-operation with third  States and international  organisations, dissemination  and 
optimisation of the results,  stimulation of training and of the mobility of EURATOM researchers). 

Activities  undertaken  in  research  and  training  programmes  in  the  field  of  nuclear  energy 
supplement  the activities  of the  key-action  "Competitive  and  sustainable  growth:  advanced  energy 
systems  and  services"  as  well  as  the  generic  activities  of  the  thematic  programme  "Promoting 
competitive  and  sustainable  growth",  as  set out  in the  Proposal  for  a Fifth  Framework  Programme 
of the European  Community.  Their  specific  objectives  are the creation  of prototype  reactors  which 
would be the forerunners  for power stations and which would meet the needs of society (operational 
safety,  environmental  compatibility,  economic  viability),  and  the  safety  and  security  in  nuclear 
energy systems, particularly with a view to the emerging export markets. 

As far  as the  thematic  aspects are concerned,  the  Framework  Programme  is centred  around  a "key 
action", "general activities for  research and development  of generic technologies" and "activities  in 
support  of research  infrastructures".  The horizontal  aspects include activities  linked to the  general 
objectives  of  the  Community's  policy  with  regard  to  external  relations,  innovation  and  human 
resources. 

The  Joint  Research  Centre  is  the  scientific  and  technical  body  which  the  Commission  needs  to 
perform  the tasks that  it is empowered to conduct.  The scientific  and technological  objectives  of its 
activities  are  located  more  especially  in  areas  requiring  impartial  and  independent  expertise  at  a 
European  level and in areas related to the objectives of the Community's main policies. 

13 

Target population of this operation: enterprises, research centres and universities. 

9.2 

Justification  of the  operation 

Under  the  EAEC  Treaty,  by  this  new  action  the  Community  will  continue,  through  the 
implementation  of  research  and  training  programmes,  to  supplement  actions  undertaken  in  the 
Member States in the nuclear  field. 

This continuation  is proposed following an assessment,  in line with  the  SEM 2000 initiative, of the 
actions of the past five years.  The  assessment  was  carried  out  during the  second  half  of  1996 and 
the beginning of 1997. 

The  findings  of  the  assessment  are  that  overall  the  programmes  have  achieved  their  objectives, 
notably in  financing  a  range  of high-quality  actions.  On  a global  level, therefore,  the  Framework 
Programme  has  a significant  impact  on  research  activities  in  the  Member  States,  and  fosters  the 
development of a very large number of cross-border collaborative networks. 

9.3 

Monitoring and evaluation of the operation 

The form  and frequency  of the  process  of evaluation  will  be  such  as  to enable  the  Commission  to 
respond to the  requirements  under  Article  5 of the  5th  Framework  Programme  and  to evaluate  the 
research and training programmes. 

The  Commission  will  examine  each  year,  with  the  help  of  appropriately  qualified  independent 
experts,  the  implementation  of  the  Framework  Programme,  in  the  light  of  the  criteria  set  out  in 
particular  in  Annex  I of the  5th  Framework  Programme.  It will  assess,  in  particular,  whether  the 
objectives, priorities  and financial  resources  are  still  appropriate  to the changing  situation.  Where 
appropriate, it will submit proposals to adapt or supplement the Framework Programme. 

In  addition,  before  submitting  its proposal  for  a  6th  Framework  Programme,  the  Commission  will 
have an external  assessment  conducted by high-level  independent  experts on the implementation  of 
activities (controlled thermonuclear fusion  and energy systems related to nuclear fission)  carried out 
during the five  years  preceding  that  assessment,  in  the  light  of the  criteria  set  out  in  particular  in 
Annex I of the 5th Framework Programme.  The  Commission will communicate  the conclusions of 
this  assessment,  accompanied  by  its  comments,  to  the  European  Parliament,  the  Council  and  the 
Economic and Social Council. 

9.4 

Coherence with financial  programming 

The financial  reference  amount for  implementation  of the  5th  Framework  Programme  will  be ECU 
1  467  Million.  Annual  appropriations  will  be  authorised  by  the  Budgetary  Authority  within  the 
limits of the financial  perspective. 

10.  ADMINISTRATIVE  EXPENDITURE 

In the spirit of lean management of resources, staff costs and administrative expenses will be closely 
scrutinised  in  the  light  of the  new structure  of the  5th  Framework  Programme.  This  examination 
will  take  place  when  the  Decisions  adopting  the  research  and  training  programmes  implementing 
the 5th Framework Programme are being taken. 

14 

ISSN 0254-1475 

COM(97) 439  final 

DOCUMENTS 

EN 

12  15  01 

Catalogue number  : CB-CO-97-445-EN-C 

ISBN 92-78-23947-X 

Office  for Official  Publications of the European  Communities 

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