Proposal for a Council Decision on the signature and a provisional application of an Additional Protocol to the Agreement establishing an Association between the European Economic Community and the Republic of Malta, to associate the Republic of Malta to the Fifth Framework Programme for Research, Technological Development and Demonstration (1998-2002)
Date: 2001-03-26
Institutions: European Commission
Subjects: EU programme, Malta, association agreement (EU), protocol to an agreement, research programme, technological change

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 26.03.2001
COM(2001) 164 final

Proposal for a

COUNCIL DECISION

on the signature and a provisional application of an Additional Protocol to the
Agreement establishing an Association between the European Economic Community
and the Republic of Malta, to associate the Republic of Malta to the Fifth Framework
Programme for Research, Technological Development and Demonstration (1998-2002)

(presented by the Commission)

1.

2.

3.

4.

EXPLANATORY MEMORANDUM

The conclusions of the Luxembourg European Council of 12 - 13 December 1997
confirmed the possibility of associating candidate countries to the Community’s
Framework Programme in the field of research and technological development, as
one of the instruments of the pre-accession strategy to be applied to these countries.

The Helsinki European Council of 10-11 December 1999 decided to convene a
bilateral intergovernmental conference on the accession of Malta to the European
Union.

Malta has formally informed the European Commission on 3 April 2000 that it wishes
such an association with the Fifth Framework Programme for research, technological
development and demonstration (1998-2002) (hereinafter referred to as the “Fifth
Framework Programme”) from 1 January 2001.

On 26 July 2000,
the Commission requested a mandate from the Council for
negotiating an Additional Protocol to the 1971 Association Agreement with Malta in
view of associating this country to the Fifth Framework Programme. On
17 October 2000, the Council authorised the Commission to negotiate this Additional
Protocol.

The negotiations resulted in the attached draft Additional Protocol and its two
annexes. This draft Additional Protocol follows the negotiating directives as adopted
by the Council on 17 October 2000.

In the light of the above-mentioned considerations, the Commission proposes that the
Council:

–

–

–

ecide that the Additional Protocol be signed on behalf of the Community;

authorise the President of the Council to designate the person empower to sign
on behalf of the European Community;

decide that the Additional Protocol shall be applied on a provisional basis as
from 1 March 2001 pending the completion of the procedures for
its
conclusion, subject to reciprocity.

2

Proposal for a

COUNCIL DECISION

on the signature and a provisional application of an Additional Protocol to the Agreement
establishing an Association between the European Economic Community and the Republic
of Malta, to associate the Republic of Malta to the Fifth Framework Programme for
Research, Technological Development and Demonstration (1998-2002)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community and in particular Article
170 thereof, in conjunction with the first sentence of Article 300(2) thereof,

Having regard to the proposal from the Commission1,

Whereas:

(1)

(2)

(3)

(4)

(5)

(6)

The Agreement establishing an association (hereinafter referred to as “the Association
Agreement”) between the European Economic Community and the Republic of Malta,
(hereinafter referred to as "Malta") entered into force on 1 April 1971.

The conclusions of the Luxembourg European Council of 12 - 13 December 1997
confirmed the possibility of associating candidate countries to the Community's
Framework Programme in the field of research and technological development as one of
the instruments of the pre-accession strategy to be applied to these countries.

By Decision No 182/99/EC, the European Parliament and the Council of the European
Union adopted the Fifth Framework Programme of the European Community in the
field of Research and Technological Development and Demonstration (1998-2002)
(hereinafter referred to as the “Fifth Framework Programme”).

The Helsinki European Council of 10-11 December 1999 decided to convene a bilateral
intergovernmental conference on the accession of Malta to the European Union.

On 3 April 2000 Malta formally informed the European Commission that it wishes such
an association with the Fifth Framework Programme from 1 January 2001.

By its Decision of 17 October 2000, the Council authorised the Commission to negotiate
on behalf of the European Community an Additional Protocol to the Association
Agreement, to associate Malta to the Fifth Framework Programme (hereinafter referred
to as "the Additional Protocol").

(7)

Subject to its possible conclusion at a later date, the Additional Protocol initialled on
6 December 2000 should be signed on behalf of the Community.

1

OJ C , , p. .

3

(8)

It
is appropriate to apply the Additional Protocol on a provisional basis as from
1 March 2001 pending the completion of the procedures for its conclusion, subject to
reciprocity,

HAS ADOPTED THIS DECISION:

Article 1

Subject to a possible conclusion at a later date, the President of the Council is hereby authorised
to designate the person empowered to sign, on behalf of the European Community,
the
Additional Protocol to the Agreement establishing an Association between the European
Economic Community and the Republic of Malta.

The text of the Additional Protocol is annexed to this Decision.

The Additional Protocol shall be applied on a provisional basis as from 1 March 2001
pending the completion of the procedures for its conclusion, subject to reciprocity.

Article 2

This Decision shall be published in the Official Journal of the European Communities.

Article 3

It shall take effect on the day of its publication.

Done at Brussels,

For the Council
The President

4

ADDITIONAL PROTOCOL

to the Agreement establishing an Association between the European Economic Community
and the Republic of Malta

THE EUROPEAN COMMUNITY hereinafter referred to as "the Community",

on the one part, and

THE REPUBLIC OF MALTA, hereinafter referred to as "Malta",

on the other part,

WHEREAS the Agreement establishing an Association between the European Economic
Community and the Republic of Malta (hereinafter
referred to as "the Association
Agreement"), has entered into force on 1 April 1971;

WHEREAS the European Council at its meeting in Helsinki on 10 and 11 December 1999
decided to convene a bilateral intergovernmental conference on the adhesion of Malta to the
European Union;

WHEREAS the European Council at its meeting in Luxembourg on 12 and 13 December
1997 had called 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;

WHEREAS the aforementioned conclusions had also called 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 182/99/EC, the Council of the European Union and the European
Parliament adopted a Framework Program of the European Community activities in the field
of research and technological development and demonstration (1998-2002), hereinafter called
the "Fifth Framework Programme";

WHEREAS the Government of Malta requested by letter dated 3 April 2000 its association to
the Fifth Framework Programme from the 1 January 2001;

HAVE AGREED AS FOLLOWS :

Article 1

1.

Research entities established in Malta, in accordance with the laws of Malta, may
participate in all the specific programmes of the Fifth Framework Programme.
Maltese scientists or research entities may participate in the activities of the Joint
Research Centre.

5

2.

3.

Research entities established in the Community may participate in research
programmes and projects in Malta in themes equivalent to those of the programmes
of the Fifth Framework Programme.

“Research entities”, as referred to in this protocol, shall
universities, organisations engaged in research activities,
including small and medium-sized enterprises, or natural persons.

include inter alia:
industrial companies,

Co-operation may take the following forms:

Article 2

1.

2.

3.

4.

5.

1.

2.

participation of research entities established in Malta 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 Program of the European
Community”.

financial contribution by Malta to the budgets of the programmes adopted for the
implementation of the Fifth Framework Programme on the basis of the ratio of the
GDP of Malta to that of the Member States of the European Union.

participation of research entities established in the Community in Maltese research
projects and rights to their results, in accordance with the laws of Malta in every
case, and shall require the joint participation of at least one Maltese research entity.
Research entities established in the Community participating in Maltese research
projects within research and development programs shall cover their own costs,
including their relative share of the project’s general management and administrative
costs.

timely provision of information concerning the implementation of RTD programmes
in Malta and the Community, and concerning the results of work undertaken within
the framework of co-operation.

co-operation may be adapted and developed at any time by mutual agreement
between the Parties.

Article 3

Research entities established in Malta 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 the provisions of Annex A.

Research entities established in the Community, taking part in Maltese 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 Maltese research
entities in the project in question.

6

Article 4

A joint committee shall be established under this Protocol, to be called “EC-Malta Research
Committee”, whose functions shall include:

–

–

reviewing, evaluating and discussing measures to ensure the implementation of this
Protocol,

examining any measure of a nature to improve and develop co-operation,

The committee, which shall be composed of representatives of the Commission and of Malta,
shall adopt its rules of procedure.

It shall meet at the request of any of the Parties and at least once a year.

Article 5

1.

2.

3.

4.

5.

1.

The financial contribution of Malta deriving from participation in the implementation
of the specific programs 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
financial obligations
stemming from work to be carried out in the forms necessary for the implementation,
management and operation of these programmes.

the Commission’s

to meet

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

In order to facilitate its participation in the specific programs, the contribution of
Malta will be implemented as follows:

Year 2001: contribution according to the proportionality factor fixed in accordance

with paragraph 2, multiplied by 0.5

Year 2002: contribution according to the proportionality factor fixed in accordance

with paragraph 2 multiplied by 0.9

The rules governing the financial contribution of Malta are set out in Annex B.

The rules for financial participation by the Community are set out in Annex IV of
Decision N0 182/99/EC of the Council of the European Union and the European
Parliament of 22 December 1998.

Article 6

Without prejudice to the provisions of Article 3, research entities established in
Malta participating in the Fifth Framework Program shall have the same contractual

7

2.

3.

4.

5.

6.

1.

2.

rights and obligations as entities established in the Community, taking into account
the mutual interests of the Community and Malta.

For Maltese 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 Malta.

Maltese experts shall be taken into consideration, alongside Community experts, in
the selection of evaluators or experts under the Community’s RTD programmes and
as members of the advisory groups and other consultative bodies which assist the
Commission in the implementation of the Fifth Framework Programme.

Without prejudice to the provisions of Article 3, research entities established in the
Community participating in research projects within research and development
programmes shall have the same contractual rights and obligations as Maltese
entities, taking into account the mutual interests of the Community and Malta.

A Maltese research entity may be co-ordinator 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, Maltese 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
they may be carried out with the purpose of
financial audits are concerned,
controlling such entities’
related to the contractual
income and expenditures,
obligations towards the Community. In a spirit of co-operation and mutual interest,
the relevant Maltese authorities shall provide any reasonable and feasible assistance
as may be necessary or helpful under the circumstances to perform such controls and
audits.

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 Maltese programmes shall be equivalent to those
the same research and development
applicable for contracts concluded under
programmes with research entities in Malta, taking into account the mutual interests
of the Community and Malta.

Article 7

Each Party undertakes, in accordance with its own rules and regulations, to facilitate
the movement and residence of research workers participating, in Malta and in the
Community, in the activities covered by this Protocol and to facilitate cross border
movement of goods intended for use in such activities.

Co-operation under this Protocol shall be exempt from Maltese indirect
taxes,
customs duties, prohibitions and restrictions on imports and exports in respect of
goods and services intended for use under such co-operation.

8

1.

2.

1.

2.

3.

4.

Article 8

Maltese representatives will, for the points which concern them, participate as
observers in the program committees of the Fifth Framework Program. These
committees shall meet without the presence of Maltese representatives at the time of
voting. Malta will be informed.

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.

Article 9

This Protocol is hereby concluded for the years 2001 and 2002.

Subject to paragraph 1, either of the Parties may terminate this Protocol at any time
upon twelve months’ notice in writing. Projects and activities in progress at the time
of termination and/or expiry of this Protocol shall continue until their completion
under the conditions laid down in this Protocol.

Should the Community decide to revise one or more Community programs, this
Protocol may be terminated under mutually agreed conditions. Malta shall be
notified of the exact content of the revised programs 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
Protocol.

Where the Community adopts a new multi-annual framework program for research
and development, this Protocol may be renegotiated or renewed under mutually
agreed conditions.

Article 10

This Protocol shall enter into force on the date on which the Parties have notified each other
of the completion of the procedures necessary for the purpose.

In the mean time,
1 March 2001, subject to reciprocity.

the Protocol shall be applied provisionally in all its elements from

Article 11

This Protocol including Annexes A and B thereto forms an integral part of the Agreement
establishing an Association between the European Economic Community and the Republic of
Malta.

9

Article 12

This Protocol shall be drawn up in duplicate in the Danish, Dutch, English, Finnish, French,
German, Greek, Italian, Portuguese, Spanish, Swedish and Maltese languages, each of these
texts being equally authentic.

Done at Brussels, on the

For the European Community

For the Republic of Malta

10

ANNEX A

PRINCIPLES ON THE ALLOCATION OF INTELLECTUAL PROPERTY RIGHTS

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

I.

APPLICATION

This Annex is applicable to joint research undertaken pursuant to this Protocol, except as
otherwise specifically agreed by the Parties.

II.

1.

2.

OWNERSHIP, ALLOCATION AND EXERCISE OF RIGHTS

For purposes of this Protocol “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.

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 this 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)

b)

c)

d)

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 Protocol or implementing arrangements and to seek protection for
such intellectual property in a timely fashion.

Taking account of the contributions of the Parties or their participants in
determining the rights and interests of the Parties and participants.

Effective exploitation of results.

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,
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 Protocol. The TMP shall be
approved by the responsible funding agency or department of the Party involved in

including publication, of

11

financing the research, before the conclusion of
development co-operation contract to which it is attached.

the specific research and

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, the transfer of export-
controlled data, goods or services, requirements imposed by the applicable laws
including those of the Parties concerning intellectual property rights and other factors
deemed appropriate by the participants.

The rights and obligations concerning the research generated by visiting researchers
in respect of intellectual property shall also be addressed in the joint technology
management plans.

Subject to the specific provisions of the Parties concerning intellectual property
rights, information or intellectual property 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 intellectual property
shall be owned jointly by all the participants involved in the joint research from
which the information or intellectual property results. Each participant to whom this
provision applies shall have the right to use such information or intellectual property
for his own commercial exploitation with no geographical limitation.

Each Party shall ensure that the other Party and its participants may have the rights to
intellectual property allocated to them in accordance with these principles.

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

Termination or expiry of this Protocol shall not affect rights or obligations under this
Annex.

5.

6.

7.

8.

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:

12

1.

2.

3.

V.

A.

1.

2.

3.

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 Agreement, 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.

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

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
a clearly visible
to be named. They shall also bear
explicitly declines
acknowledgement of the co-operative support of the Parties.

UNDISCLOSED INFORMATION

Documentary undisclosed information

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)

(b)

(c)

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;

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

previous protection of the information in the sense that it has been subject to
steps that were reasonable under the circumstances by the person lawfully in
control, to maintain its confidentiality.

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.

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.

Undisclosed information communicated under this Protocol 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

13

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 above. 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 Protocol, 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 Protocol; 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
Protocol 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 above, it shall immediately inform the other Party. The Parties
shall thereafter consult to define an appropriate course of action.

14

Indicative features of a Technology Management Plan (TMP)

APPENDIX

The TMP is a specific agreement
implementation of joint research and the respective rights and obligations of the participants.

to be concluded between the participants about

the

With respect to intellectual property, 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.

15

ANNEX B

FINANCIAL RULES GOVERNING THE FINANCIAL CONTRIBUTION OF Malta
REFERRED TO IN ARTICLE 5 OF THIS PROTOCOL

1.

1.1.

1.2.

2.

2.1.

DETERMINATION OF THE FINANCIAL PARTICIPATION

The Commission of the European Communities shall communicate to Malta, and
shall inform the sub-committee referred to in Article 4 of this Protocol, together with
relevant background material, as soon as possible, and at the latest on 1 September,
of each financial year:

(a)

(b)

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;

the estimated amount of the contributions derived from the preliminary draft
budget, corresponding to the participation of Malta in the Fifth 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 Malta the above amounts in the statement of expenditure
corresponding to the participation of Malta.

PAYMENT PROCEDURES.

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

–

–

of six-twelfths of the contribution of Malta 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.

2.2.

For the first year of implementation of this protocol, 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 Malta within 30 days, calculated on the basis of the amount set out in the
statement of the revenue of the budget.

2.3.

The contribution of Malta shall be expressed and paid in Euro.

16

2.4.

2.5.

3.

3.1.

3.2

Malta shall pay its contribution under this Protocol according to the schedule in
paragraphs 2.1. and 2.2. above. Any delay in payment shall give rise to the payment
of interest at a rate equal to the one-month interbank offered rate (EURIBOR) in
Euro as quoted on Telerate. 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 paragraphs 2.1. and 2.2. above.

Travel costs incurred by Maltese representatives and experts for the purposes of
taking part in the work of the committee referred to in Articles 4, 6.3 and 8.1 of this
Protocol and those involved in the implementation of
the Fifth 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.

CONDITIONS FOR THE IMPLEMENTATION.

The financial contribution of Malta to the Fifth Framework Programme in
accordance with Article 5 of the Protocol shall normally remain unchanged for the
financial year in question.

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 Malta, 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 year n+1. Further
the second payment
regularisations shall occur every year until July 2006.

the time of

for

Payment by Malta shall be credited to the Committee 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.

INFORMATION

At the latest on 31 May of each financial year (n+1), the statement of appropriations
for the Fifth Framework Programme related to the previous financial year (n), shall
be prepared and transmitted to Malta for information, according to the format of the
Commission’s revenue and expenditure account.

17

FINANCIAL STATEMENT

1.

TITLE OF OPERATION

Proposal for a Council Decision and a provisional application on the signature of the
Additional Protocol
to the Agreement establishing an Association between the
European Economic Community and the Republic of Malta, to associate the Republic
of Malta to the Fifth Framework Programme for Research, Technological
Development and Demonstration (1998-2002).

2.

BUDGET HEADING(S) INVOLVED

Participation in direct and indirect RTD actions and the travelling expenses of
experts and of EC officials on mission will be charged to the specific budget
headings of the programmes of the Community RTD framework programme.

Participation of Malta:

–

–

Chapter 60 (revenues), Articles B6-451 and B6-551 (expenditures).

Malta’s contribution to the framework programme will be proportionate to its
GDP compared with that of the Union (see point 7.1.1).

3.

LEGAL BASIS

–

–

Articles 170 and 300 of the EC Treaty.

European Parliament and Council Decision concerning the Fifth Framework
research and technological
Program of
development and demonstration activities (1998-2002), 182/99/EC.

the European Community for

4.

4.1

DESCRIPTION OF OPERATION

General objective

The essential aim is to stimulate RTD co-operation between the EC and Malta at the
level of the framework research programme.

4.2

Period covered and arrangements for renewal

2001-2002.

18

5.

5.1

5.2

5.3

CLASSIFICATION OF EXPENDITURE OR REVENUE

Non-compulsory expenditure

Differentiated appropriations

Type of revenue involved

Participation by a non-member country in the specific programmes of the framework
programme in question.

6.

TYPE OF EXPENDITURE OR REVENUE

Expenditure:

–

–

–

Participation in direct RTD actions, indirect RTD actions (shared-cost actions,
training fellowships, support for networks, concerted actions, accompanying
measures).

Up to 100% funding.

Missions to Malta by Commission officials and of EU experts, organisations of
workshops, seminars and meetings in Member States and in Malta.

Revenue:

–

Financial Contribution by a non-member country to the Budget of the Fifth
Framework Programme.

7.

7.1

FINANCIAL IMPACT

Method of calculating total cost of operation (relation between individual and
total costs)

7.1.1 Malta’s contribution to the EU budget (indicative)

EU budget 1998-2002 (5 years) Framework Programmes (indicative)

ESTIMATE BUDGET
(Mio EURO)

2001

2002

TOTAL

EC FP5

3596,0

3793,5

7389,5

19

Malta’s full contribution to the EU budget (Indicative)

GDP (1998)

Ratio:
GDP MT
--------------------
GDP UE15 + GDP MT

EC FP5

UE15

MT

7593142,30

7389,5

3132,3

0.000412

3,05

Malta’s full contribution to the EU budget, distribution per year (Indicative, Mio)

2001

2002

TOTAL EC FP5

EU15

3596,0

3793,5

MT

1,48

1,57

7389,5

3,05

Malta’s contribution to the EU budget, distribution per year (Mio), with reduced contribution

2001

2002

TOTAL EC FP5

Contribution

MT

50%

0,74

90%

1,41

2,76

7.2

7.3

Itemised breakdown of cost

Operational expenditure for studies, experts etc. included in Part B of the
budget

Commitment appropriations EUR million (at current prices)

year n

n+1

2001

2002

– Missions of experts

0,09

– Missions of civil servants

0,05

– Workshops

0,01

0,09

0,05

0,01

Total

0,15

0,15

20

7.4

Schedule of commitment and payment appropriations

EUR million

year n

n+1

Total

2001

2002

Commitment appropriations

0,15

0,15

Payment appropriations

0,15

0,15

2001

2002

Total

0,15

0,15

0,15

0,15

0,30

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.

After signature of the contract

–

–

–

–

Examination of expenditure at a number of levels (scientific officer, financial
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 co-ordinates 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 Commission services and by the Court of
Auditors of the European Union.

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9.

9.1

ELEMENTS OF COST-EFFECTIVENESS ANALYSIS

Specific and quantified objectives; target population

–

–

Specific objectives: the Decision should enable Malta and the Community to
derive on mutual benefit from the scientific and technical progress achieved
through their
reciprocal research programmes, with participation by the
scientific community Malta in question and industry in Community research
programmes. Furthermore it will provide a useful preparation for accession by
familiarising Malta with the Framework Programme mechanisms.

Target population: beneficiaries in the EU and Malta will be the scientific
communities, industry and the population generally, thanks to the direct and
indirect impacts of co-operation.

9.2

Grounds for the operation

–

–

–

Community funding is indispensable as the planned co-operation forms part of
implementation of the framework programme, including the budget section:
participation by Malta in the specific programmes and administrative
expenditure by the EU side (missions by experts and EU officials; organisation
of seminars in the EU and in Malta).

Budgetary arrangements will be based on the type of co-operation proposed
(association of a non-member country in specific programmes of Community
Research).

One general element of uncertainty is the extent to which Malta will actually
take part in the specific programmes and how it will affect the budget.

9.3

Monitoring and evaluation of the operation

The Decision will be regularly evaluated by the relevant Commission departments
and will be subjected to a joint Community- Malta evaluation each year. Evaluation
will cover:

a. Performance indicators:

–

–

–

–

number of proposals put forward by Malta per specific programme compared
with the number of proposals selected for funding under the programme;

number of proposals put forward by Malta 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 relative share of Maltese participation
in those specific programmes;

number of proposals of Malta selected for funding in the specific programmes
of the framework programme compared with its relative participation in those
programmes.

22

b. Gathering information:

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

c. Overall evaluation of the action:

At the end of the 5th Framework programme the Commission will evaluate all co-
operation activities covered by the Decision.

d. Corrections:

Through information to the relevant partners on both sides on practical arrangements
in the specific programmes of the framework programme. The
for taking part
information will be passed on in accordance with the recommendations of the
relevant sub-committee set up under the additional protocol to the Association
Agreement EEC/Malta.

10.

ADMINISTRATIVE EXPENDITURE (SECTION III, PART A OF THE BUDGET)

The Commission is not requesting any additional posts for the management of the
Decision.

No officials are being specifically assigned to manage the Decision. It will be
managed by the staff authorised for the fifth framework programme.

23