Proposal for a Council Decision concerning the Community position within the Association Council on the association of the Republic of Hungary to Community programmes in the field of research, technological development and demonstration (1998-2002) and to programmes for research and training activities (1998- 2002)
Date: 1999-02-08
Institutions: European Commission
Subjects: EU Member State, EU programme, accession to the European Union, associated country, research policy

C  75/24

EN

Official  Journal  of  the  European  Communities

18.3.1999

99/0042(CNS)

Proposal  for  a

COUNCIL  DECISION

of  . . .

concerning  the  Community  position  within  the  Association  Council  on  the  association  of  the
Republic  of  Hungary  to  Community  programmes  in  the  field  of  research,  technological
development  and  demonstration  (1998  to  2002)  and  to  programmes  for  research  and  training
activities
(1998  to  2002)

(1999/C  75/03)

THE  COUNCIL  OF  THE  EUROPEAN  UNION,

Having  regard  to  the  Treaty  establishing  the  European
Community,  and 
in
conjunction  with  Article  228(3),  first  subparagraph
thereof,

in  particular  Article  130m, 

Having  regard  to  the  Treaty  establishing  the  European
Atomic  Energy  Community,  and  in  particular  Article
101(2)  thereof,

Having  regard  to  the  proposal  from  the  Commission,

Whereas,  by  Decision  No  . . ./. . ./EC,  the  European
Parliament  and  the  Council  of  the  European  Union
adopted  a  Framework  Programme  of  European
Community  activities 
research,
technological 
demonstration
(1998-2000),  hereinafter  called  the  fifth  framework
programme (1),

development 

field  of 

and 

the 

in 

Whereas,  by  Decision  No  . . ./. . ./Euratom,  the  Council
of 
the  European  Union  adopted  a  Framework
Programme  of  the  European  Atomic  Energy  Community
(1998-2002),
for 
hereinafter 
framework
programme (2),

training  activities 
the 

research  and 
called 

fifth  Euratom 

Having  regard 
Parliament,

to 

the  opinion  of 

the  European

HAS  DECIDED  AS  FOLLOWS:

the  Europe  Agreement 

Whereas 
establishing  an
association between the European Communities and their
Member  States,  of  the  one  part,  and  the  Republic  of
Hungary,  of  the  other  part,  entered  into  force  on
1  February  1994;

Whereas  according  to  Article  1  of  the  Additional
Protocol  to  the  Europe  Agreement,  Hungary  may
participate 
framework  programmes,
specific  programmes,  projects  or  other  actions  notably  in
the  field  of  research  and  technological  development;

in  Community 

Whereas  according  to  Article  2  of  the  Additional
Protocol  to  the  Europe  Agreement,  the  terms  and
conditions  for  the  participation  of  Hungary  in  the
activities  referred  to  in  Article  1  shall  be  decided  by  the
Association  Council;

The  position  to  be  taken  by  the  Community  within  the
Association Council established by the Europe Agreement
between  the  European  Communities  and  their  Member
States,  of  the  one  part,  and  the  Czech  Republic  of  the
other  part,  concerning  the  participation  of  Hungary  in
the fifth framework programme and in the fifth Euratom
framework  programme  is  that  set  out  in  the  attached
draft  decision  of  the  Association  Council.

For  the  Council

. . .

The  Chairman

Done  at  . . .

(1)  OJ  L  . . .
(2)  OJ  L  . . .

18.3.1999

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C  75/25

Proposal  for

DECISION  No  . . ./. . .  OF  THE  ASSOCIATION  COUNCIL

between the European Communities and their Member States of the one part, and the Republic
of  Hungary,  of  the  other  part

adopting the terms and conditions for the participation of Hungary in Community programmes
in  the  field  of  research,  technological  development  and  demonstration  (1998-2002)  and  in
programmes  for  research  and  training  activities  (1998-2002)

of  . . .

THE  ASSOCIATION  COUNCIL,

Having  regard  to  the  Europe  Agreement  establishing  an  association  between  the  European
Communities  and  their  Member  States,  of  the  one  part,  and  the  Republic  of  Hungary  of  the
other  part (1),

Having  regard  to  the  Additional  Protocol  to  the  Europe  Agreement  establishing  an  association
between  the  European  Communities  and  their  Member  States,  of  the  one  part,  and  the  the
Republic  of  Hungary  on  the  other  part,  concerning  Hungarian  participation  in  Community
programmes (2)  and  in  particular  Articles  1  and  2  thereof,

Whereas  according  to  Article  1  of  the  said  Additional  Protocol,  Hungary  may  participate  in
Community framework programmes, specific programmes, projects or other Community actions
notably  in  the  fields  of  research  and  technological  development;

Whereas the European Council at its meeting in Luxemburg on 12 and 13 December 1997 calls
for  the  opening  of  certain  Community  programmes  (such  as  in  the  field  of  research)  to  the
candidate countries, as a way of familiarising themselves with the policies and working methods
of  the  Union,  each  candidate  country  being  expected  to  make  a  steadily  increasing  financial
contribution  of  its  own  (PHARE  will,  if  necessary,  be  able  to  part-finance  the  applicant  States’
national  contributions);

Whereas  the  aforementioned  conclusions  also  call  for  the  participation  of  the  candidate
countries,  as  observers  and  for  the  points  which  concern  them,  in  the  committees  assisting  the
Commission  in  the  implementation  of  the  programmes  to  which  they  contribute  financially;

Whereas, by Decision No . . ./. . ./EC, the European Parliament and the Council of the European
Union  adopted  a  Framework  Programme  of  European  Community  activities  in  the  field  of
research, technological development and demonstration (1998-2002), hereinafter called the ‘fifth
framework  programme’;

Whereas,  by  Decision  No  . . ./. . ./Euratom,  the  Council  of  the  European  Union  adopted  a
Framework  Programme  of  the  European  Atomic  Energy  Community  for  research  and  training
activities  (1998-2002),  hereinafter  called  the  ‘fifth  Euratom  framework  programme’;

Whereas according to Article 2 of the said Additional Protocol the terms and conditions for the
participation  of  Hungary  in  the  activities  referred  to  in  Article  1  are  to  be  decided  by  the
Association  Council;

(1)  OJ  L  347,  31.12.1993,  p.  2.
(2)  OJ  L  317,  30.12.1995,  p.  30.

C  75/26

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Official  Journal  of  the  European  Communities

18.3.1999

HAS  DECIDED  AS  FOLLOWS:

Article  1

Hungary may participate in the specific programmes of the Framework Programme of European
Community  activities  in  the  field  of  research,  technological  development  and  demonstration
(1998-2002),  hereinafter  called  the 
in  the  specific
programmes of the fifth framework programme of the European Atomic Energy Community for
research  and  training  activities  (1998-2002),  hereinafter  called  the  ‘fifth  Euratom  framework
programme’, according to the terms and conditions set out in Annexes I, II and III which shall
form  an  integral  part  of  this  Decision.

‘fifth  framework  programme’,  and 

This  Decision  shall  apply  for  the  duration  of  the  fifth  framework  programme  and  of  the  fifth
Euratom  framework  programme.

Article  2

This  Decision  shall  enter  into  force  on  the  first  day  of  the  month  following  its  adoption.

Article  3

Done  at  . . .

For  the  Association  Council

. . .

The  Chairman

18.3.1999

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C  75/27

ANNEX  I

TERMS  AND  CONDITIONS  FOR  THE  PARTICIPATION  OF  HUNGARY  IN  THE  SPECIFIC
PROGRAMMES  OF  THE  FIFTH  FRAMEWORK  PROGRAMME  AND  OF  THE  FIFTH  EURATOM
FRAMEWORK  PROGRAMME

1.  Research  entities  established  in  Hungary  may  participate  in  all  the  specific  programmes  of  the  fifth
framework  programme  and  of  the  fifth  Euratom  framework  programme.  Hungarian  scientists  or
research  entities  may  participate  in  the  activities  of  the  Joint  Research  Centre.

‘Research  entities’  as  referred  to  in  this  Decision,  shall  include  inter  alia  universities,  research
organisations,  industrial  companies,  including  small  and  medium-sized  enterprises,  or  natural  persons.

2.  This  will  imply  the  following:

—  participation  of  research  entities  established  in  Hungary  in  the  implementation  of  all  specific
programmes  adopted  under  the  fifth  framework  programme,  in  accordance  with  the  terms  and
conditions  laid  down  in  the  ‘rules  for  the  participation  of  undertakings,  research  centres  and
universities  and  for  the  dissemination  of  research  results  for  the  implementation  of  the  fifth
framework  programme  of  the  European  Community’.

—  participation  of  research  entities  establish  in  Hungary  in  the  implementation  of  all  specific
programmes adopted under the fifth Euratom framework programme in accordance with the terms
and  conditions  laid  down  in  the  ‘rules  for  participation  of  undertakings,  research  centres  and
universities and for the implementation of the fifth framework programme of the European Atomic
Energy  Community’.

—  financial  contribution  by  Hungary  to  the  budgets  of  the  programmes  adopted  for  the
implementation  of  the  fifth  framework  programme  and  the  fifth  Euratom  framework  programme
on  the  basis  of  the  ratio  of  the  GDP  of  Hungary  to  the  sum  of  the  GDP  of  the  Member  States  of
the  European  Union  and  that  of  Hungary.

3.  Research  entities  established  in  Hungary  participating  in  Community  research  programmes,  and  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  the  provisions  of  Annex  II.

4.  The  relevant  sub-committee  set  up  by  the  Association  Council  under  the  Europe  Agreement  shall

review  and  evaluate  the  implementation  of  this  Decision.

5.  The financial contribution of Hungary 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  European  Union  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.

—  The proportionality factor governing the contribution of Hungary shall be obtained by establishing
the  ratio  between  the  gross  domestic  product  of  Hungary,  at  market  prices,  and  the  sum  of  gross
domestic  products,  at  market  prices,  of  the  Member  States  of  the  European  Union  and  Hungary.
This  ratio  shall  be  calculated  on  the  basis  of  the  latest  statistical  data  pertaining  to  the  same  year
from  the  Statistical  Office  of  the  European  Communities  (Eurostat),  available  at  the  time  of
publication  of  the  preliminary  draft  budget  of  the  European  Union.

—  In order to facilitate its participation in the specific programmes, the contribution of Hungary will

be  implemented  as  follows:

Year  1  of  FP  5:

contribution  according  to  the  proportionality  factor  fixed  in  accordance
with  the  preceding  indent,  multiplied  by  0,4.

C  75/28

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18.3.1999

Year  2  of  FP  5:

contribution  according  to  the  proportionality  factor  fixed  in  accordance
with  the  preceding  indent,  multiplied  by  0,6.

Year  3  of  FP  5:

contribution  according  to  the  proportionality  factor  fixed  in  accordance
with  the  preceding  indent,  multiplied  by  0,8.

Year  4  of  FP  5:

contribution  according  to  the  proportionality  factor  fixed  in  accordance
with  the  preceding  indent.

—  The  rules  for  financial  participation  by  the  Community  are  set  out  in  Annex  . . .  of  the  European
Parliament  and  the  Council  Decision  No  . . ./. . ./EC,  and  in  Annex  III  of  the  Council  Decision  No
. . ./. . ./Euratom.

—  The  rules  governing  the  financial  contribution  of  Hungary  are  set  out  in  Annex  III.

6.  Without  prejudice  to  the  provisions  of  paragraph  3,  research  entities  established  in  Hungary
participating in the fifth framework programme and in the fifth Euratom 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  Hungary.

For Hungarian 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 with research
entities  in  the  Community,  taking  into  account  the  mutual  interests  of  the  Community  and  Hungary.

Hungarian experts shall be taken into consideration, alongside Community experts, in the selection of
evaluators  or  experts  under  the  Community’s  research  and  technological  development  and
demonstration  programmes  and  as  members  of  the  advisory  groups  and  other  consultative  bodies
which  assist  the  Commission  in  the  implementation  of  the  fifth  framework  programme  and  the  fifth
Euratom  framework  programme.

A  Hungarian  research  entity  may  be  coordinator  of  a  project  under  the  same  terms  and  conditions
applicable  to  entities  established  in  the  Community.  In  conformity  with  the  Community’s  Financial
Regulations, contractual arrangements concluded with, or by, Hungarian research entities shall provide
for controls and audits to be carried out by, or under the authority of, the Commission and the Court
of  Auditors.  As  far  as  financial  audits  are  concerned,  they  may  be  carried  out  with  the  purpose  of
controlling  such  entities  income  and  expenditures,  related  to  the  contractual  obligations  towards  the
Community.  In  a  spirit  of  cooperation  and  mutual  interest,  the  relevant  Hungarian  authorities  shall
provide any reasonable and feasible assistance as may be necessary or helpful under the circumstances
to  perform  such  controls  and  audits.

7.  The Community and Hungary will make every effort, within the framework of the existing provisions,
to facilitate the free movement and residence of research workers participating, in Hungary and in the
Community, in the activities covered by this Decision and to facilitate cross border movement of goods
intended  for  use  in  such  activities.

Activities  covered  by  this  Decision  shall  be  exempt  from  Hungarian  indirect  taxes,  customs  duties,
prohibitions  and  restrictions  on  imports  and  exports  in  respect  of  goods  and  services  intended  for  use
under  such  activities.

8.  Hungarian  representatives  will,  for  the  points  which  concern  them,  participate  as  observers  in  the
progrmme  committees  of  the  fifth  framework  programme  and  in  the  Consultative  Committee  of  the
fifth Euratom framework programme. These committees shall meet without the presence of Hungarian
representatives at the time of voting. Hungary will be informed. Participation shall take the same form,
including  procedures  for  receipt  of  information  and  documentation,  as  that  applicable  to  participants
from  Member  States.

9.  The  Community  and  Hungary  may  terminate  activities  under  this  Decision  at  any  time  upon  12
months’  notice  in  writing.  Projects  and  activities  in  progress  at  the  time  of  termination  shall  continue
until  their  completion  under  the  conditions  laid  down  in  this  Decision.

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C  75/29

Should  the  Community  decide  to  revise  one  or  more  Community  programmes,  activities  under  this
Decision  may  be  terminated  under  mutually  agreed  conditions.  Hungary  shall  be  notified  of  the  exact
content  of  the  revised  programmes  within  one  week  of  their  adoption  by  the  Community.  The
Community  and  Hungary  shall  notify  one  another,  within  one  month  after  the  adoption  of  the
Community  decision,  of  any  intention  to  terminate  the  activities.

Where  the  Community  adopts  a  new  multi-annual  framework  programme  for  research  and
development  and/or  for  research  and  training  activities,  the  Association  Council  may  decide  the  terms
and  conditions  for  the  participation  of  Hungary.

C  75/30

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18.3.1999

ANNEX  II

PRINCIPLES  ON  THE  ALLOCATION  OF  INTELLECTUAL  PROPERTY  RIGHTS

Rights to intellectual property created or furnished under this Decision shall be allocated as provided in this
Annex.

I.  Application

This  Annex  is  applicable  to  research  carried  out  pursuant  to  this  Decision  (hereinafter  referred  to  as  ‘joint
research’), except as, otherwise specifically agreed by the Community and Hungary, (hereinafter referred to
as  ‘the  parties’).

II.  Ownership,  allocation  and  exercise  of  rights

1.  For  purposes  of  this  Decision  ‘intellectual  property’  shall  have  the  meaning  found  in  Article  2  of  the
Convention  establishing  the  World  Intellectual  Property  Organisation,  done  at  Stockholm,  14  July
1967.

2.  This  Annex  addresses  the  allocation  of  rights,  interests  and  royalties  of  the  parties  and  their
participants.  Each  party  and  its  participants  shall  ensure  that  the  other  party  and  its  participants  may
obtain the rights to intellectual property allocated to it in accordance with the Annex. This Annex does
not otherwise alter or prejudice the allocation of rights, interests and royalties between a party and its
nationals  or  participants,  which  shall  be  determined  by  the  laws  and  practices  applicable  to  each
party.

3.  The  following  principles  shall  apply  and  shall  be  provided  for  in  the  contractual  arrangements:

(a)  Adequate protection of intellectual property. The parties, their agencies and/or their participants, as
appropriate,  shall  ensure  that  they  notify  one  another  within  a  reasonable  time  of  the  creation  of
any  intellectual  property  arising  under  this  Decision  or  implementing  arrangements  and  to  seek
protection  for  such  intellectual  property  in  a  timely  fashion.

(b) Taking  account  of  the  contributions  of  the  parties  or  their  participants  in  determining  the  rights

and  interests  of  the  parties  and  participants.

(c)  Effective  exploitation  of  results.

(d) Non-discriminatory treatment of participants from the other party as compared with the treatment

given  to  its  own  participants.

(e)  Protection  of  Business-Confidential  information.

4.  The  participants  shall  jointly  develop  a  Technology  Management  Plan  (TMP)  in  respect  of  the
ownership and use, including publication, of information and intellectual property to be created in the
course of joint research. The indicative features of a TMP are contained in the Appendix to this Annex.
The TMP shall be approved by the responsible funding agency or department of the party involved in
financing  the  research,  before  the  conclusion  of  the  specific  research  and  development  cooperation
contract  to  which  it  is  attached.

The  TMPs  shall  be  developed  taking  into  account  the  aims  of  the  joint  research,  the  relative  financial
or  other  contributions  of  the  parties  or  participants,  the  advantages  and  disadvantages  of  licensing  by
territory or for fields of use, requirements imposed by the applicable laws including those of the parties
concerning  IP  rights  and  other  factors  deemed  appropriate  by  the  participants.  The  rights  and
obligations  concerning  the  research  generated  by  visiting  researchers  in  respect  of  IP  shall  also  be
addressed  in  the  joint  technology  management  plans.

5. 

Information  or  IP  created  in  the  course  of  joint  research  and  not  addressed  in  the  technology
management  plan  shall  be  allocated,  with  the  approval  of  the  parties,  according  to  the  principles  set
out  in  the  technology  management  plan.  In  case  of  disagreement,  such  information  or  IP  shall  be

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owned  jointly  by  all  the  participants  involved  in  the  joint  research  from  which  the  information  or  IP
results. Each participant to whom this provision applies shall have the right to use such information or
IP  for  his  own  commercial  exploitation  with  no  geographical  limitation.

6.  Each party shall ensure that the other party and its participants may have the rights to IP allocated to

them  in  accordance  with  these  principles.

7.  While  maintaining  the  conditions  of  competition  in  areas  affected  by  this  Decision,  each  party  shall
endeavour to ensure that rights acquired pursuant to this Decision 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  this  Decision,  and  (ii)  the  adoption  and
implementation  of  international  standards.

8.  Termination  of  the  cooperation  shall  not  affect  rights  or  obligations  under  this  Annex.

III.  Copyright  works

Copyright  belonging  to  the  parties  or  to  their  participants  shall  be  accorded  treatment  consistent  with  the
TRIPS Agreement (Agreement on Trade Related Aspects of Intellectual Property Rights administered by the
World  Trade  Organisation)  as  well  as  the  Berne  Convention  (Paris  Act  1971).

IV.  Scientific  literary  works

Without prejudice to Section V, and unless otherwise agreed in the TMP, publication of results of research
shall  be  made  jointly  by  the  parties  or  participants  to  that  joint  research.  Subject  to  the  foregoing  general
rule,  the  following  procedures  shall  apply:

1. 

In the case of publication by a party or public bodies of that party of scientific and technical journals,
articles,  reports,  books,  including  video  and  software  arising  from  joint  research  pursuant  to  this
Decision,  the  other  party  shall  be  entitled  to  a  world-wide,  non-exclusive,  irrevocable,  royalty-free
licence  to  translate,  reproduce,  adapt,  transmit  and  publicly  distribute  such  works.

2.  The parties shall ensure that literary works of a scientific character arising from joint research pursuant
to  this  Decision  and  published  by  independent  publishers  shall  be  disseminated  as  widely  as  possible.

3.  All  copies  of  a  copyright  work  to  be  publicly  distributed  and  prepared  under  this  provision  shall
indicate the names of the author(s) of the work unless an author explicitly declines to be named. They
shall  also  bear  a  clearly  visible  acknowledgement  of  the  cooperative  support  of  the  parties.

V.  Undisclosed  information

A.  Documentary  undisclosed  information

1.  Each party, its agencies or its participants, as appropriate, shall identify at the earliest possible moment
and  preferably  in  the  technology  management  plan  the  information  that  they  wish  to  remain
undisclosed,  taking  into  account  inter  alia  the  following  criteria:

(a)  confidentiality  of  the  information  in  the  sense  that  it  is  not,  as  a  body  or  in  the  precise
configuration  or  assembly  of  its  components,  generally  known  among  or  readily  accessible  by
lawful  means  to  experts  in  the  field;

(b) the  actual  or  potential  commercial  value  of  the  information  by  virtue  of  its  confidentiality;

(c)  previous  protection  of  the  information  in  the  sense  that  it  has  been  subject  to  steps  that  were
its

in  control,  to  maintain 

lawfully 

reasonable  under  the  circumstances  by  the  person 
confidentiality.

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18.3.1999

The parties, their agencies and their participants, as appropriate, may in certain cases agree that, unless
otherwise  indicated,  parts  or  all  of  the  information  provided,  exchanged  or  created  in  the  course  of
joint  research  may  not  be  disclosed.

2.  Each party shall ensure that it and its participants clearly identify undisclosed information, for example
by means of an appropriate marking or restrictive legend. This also applies to any reproduction of the
said  information,  in  whole  or  in  part.

A party and a participant receiving undisclosed information shall respect the privileged nature thereof.
These limitations shall automatically terminate when this information is disclosed by the owner into the
public  domain.

3.  Undisclosed information communicated under this Decision may be disseminated by the receiving party
or its organisation to persons within or employed by the receiving party or organisation authorised for
the  specific  purposes  of  the  joint  research  under  way,  provided  that  any  undisclosed  information  so
disseminated  shall  be  pursuant  to  an  agreement  of  confidentiality  and  shall  be  readily  recognisable  as
such,  as  set  out  above.

4.  With the prior written consent of the party providing undisclosed information, the receiving party may
disseminate  such  undisclosed  information  more  widely  than  otherwise  permitted  in  paragraph  3.  The
parties shall cooperate in developing procedures for requesting and obtaining prior written consent for
such  wider  dissemination,  and  each  party  will  grant  such  approval  to  the  extent  permitted  by  its
domestic  policies,  regulations  and  laws.

B.  Non-documentary  undisclosed  information

Non-documentary  undisclosed  or  other  confidential  information  provided  in  seminars  and  other  meetings
arranged  under  this  Decision,  or  information  arising  from  the  attachment  of  staff,  use  of  facilities,  or  joint
projects,  shall  be  treated  by  the  parties  or  their  participants  according  to  the  principles  specified  for
documentary information in the Decision; provided, however, that the recipient of such undisclosed or other
confidential or privileged information has been made aware of the confidential character of the information
communicated  at  the  time  such  communication  is  made.

C.  Control

Each  party  shall  endeavour  to  ensure  that  undisclosed  information  received  by  it  under  this  Decision  shall
be controlled as provided herein. If one of the parties becomes aware that it will be, or may be reasonably
expected  to  become,  unable  to  meet  the  non-dissemination  provisions  of  Sections  A  and  B,  it  shall
immediately  inform  the  other  party.  The  parties  shall  thereafter  consult  to  define  an  appropriate  course  of
action.

Appendix  to  Annex  II

Indicative  features  of  a  Technology  Management  Plan  (TMP)

The  TMP  is  a  specific  agreement  to  be  concluded  between  the  participants  about  the  implementation  of
joint  research  and  the  respective  rights  and  obligations  of  the  participants.

With  respect  to  IP,  the  TMP  will  normally  address,  among  other  things,  ownership,  protection,  user  rights
for  research  and  development  purposes,  exploitation  and  dissemination,  including  arrangements  for  joint
publication,  the  rights  and  obligations  of  visiting  researchers  and  dispute  settlement  procedures.  The  TMP
may  also  address  foreground  and  background  information,  licensing  and  deliverables.

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ANNEX  III

FINANCIAL  RULES  GOVERNING  THE  FINANCIAL  CONTRIBUTION  OF  HUNGARY  REFERRED
TO  IN  ANNEX  I,  PARAGRAPH  5  OF  THIS  DECISION

1.  The  Commission  shall  communicate  to  Hungary,  and  shall  inform  the  sub-committee  referred  to  in
Annex I, paragraph 4 of this Decision, together with relevant background material, as soon as possible,
and  at  the  latest  on  1  September,  of  each  financial  year:

—  the  amounts  in  commitment  appropriations,  in  the  statement  of  expenditure  of  the  preliminary
draft  budget  of  the  European  Union  corresponding  to  the  fifth  framework  programme  and  to  the
fifth  Euratom  framework  programme;

—  the estimated amount of the contributions derived from the preliminary draft budget, corresponding
to  the  participation  of  Hungary  in  the  fifth  framework  programme  and  in  the  fifth  Euratom
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.

As soon as the general budget has been finally adopted the Commission shall communicate to Hungary
the  above  amounts  in  the  statement  of  expenditure  corresponding  to  the  participation  of  Hungary.

2.  The  Commission  shall  issue,  at  the  latest  on  1  January  and  15  June  of  each  financial  year,  a  call  for
funds  to  Hungary  corresponding  to  its  contribution  under  this  Decision.  These  calls  for  funds  shall
provide,  respectively,  for  the  payment:

—  of  six-twelfths  of  the  contribution  of  Hungary  not  later  than  20  February,

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

However,  the  six-twelfths,  to  be  paid  not  later  than  20  February  are  calculated  on  the  basis  of  the
amount  set  out  in  the  statement  of  revenue  of  the  preliminary  draft  budget:  the  regularisation  of  the
amount  thus  paid  shall  occur  with  the  payment  of  the  six-twelfths  not  later  than  15  July.

For  the  first  year  of  implementation  of  this  Decision,  the  Commission  shall  issue  a  first  call  for  funds
within  30  days  of  its  entry  into  force.  Should  this  call  be  issued  after  15  June,  it  shall  provide  for  the
payment  of  twelve/twelfths  of  the  contribution  of  Hungary  within  30  days,  calculated  on  the  basis  of
the  amount  set  out  in  the  statement  of  the  revenue  of  the  budget.

The  contribution  of  Hungary  shall  be  expressed  and  paid  in  Euros.

Hungary shall pay its contribution under this Decision according to the schedule in this paragraph. 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  Euros  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  30  days  after  the  scheduled  payment  dates  mentioned  in  this  paragraph.

Travel  costs  incurred  by  Hungarian  representatives  and  experts  for  the  purposes  of  taking  part  in  the
work  of  the  committee  referred  to  in  Annex  I,  paragraphs  6  and  8  and  those  involved  in  the
implementation of the fifth framework programme and the fifth Euratom framework programme shall
be  reimbursed  by  the  Commission  on  the  same  basis  as  and  in  accordance  with  the  procedures
currently  in  force  for  the  representatives  and  experts  of  the  Member  States  of  the  European  Union.

3.  The  financial  contribution  of  Hungary  to  the  fifth  framework  programme  and  the  fifth  Euratom
framework programme in accordance with Annex I, paragraph 5 shall normally remain unchanged for
the  financial  year  in  question.

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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
regularisation  of  the  accounts  with  respect  to  the  participation  of  Hungary,  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  regularisation  shall  occur  at
the time of the second payment for the year n+1. Further regularisation shall occur every year until July
2006.

Payment  by  Hungary  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
Union.

The  financial  regulation  applicable  to  the  general  budget  of  the  European  Union  shall  apply  to  the
management  of  the  appropriations.

4.  At  the  latest  on  31  May  of  each  financial  year  (n+1),  the  statement  of  appropriations  for  the  fifth
framework  programme  and  the  fifth  Euratom  framework  programme  related  to  the  previous  financial
year (n), shall be prepared and transmitted to Hungary for information, according to the format of the
Commission’s  revenue  and  expenditure  account.