Proposal for a Council Decision concerning the signature of the Agreement on Scientific and Technical Cooperation between the European Community and the State of Israel
Date: 2003-03-28
Institutions: European Commission
Subjects: EU research policy, Israel, cooperation agreement (EU), scientific cooperation

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 28.3.2003
COM(2003) 150 final

Proposal for a

COUNCIL DECISION

concerning the signature of the Agreement on Scientific and Technical Cooperation
between the European Community and the State of Israel

(presented by the Commission)

EXPLANATORY MEMORANDUM

Subject: Proposal for a Council Decision concerning the signature of the Agreement on
Scientific  and  Technical  Cooperation  between  the  European  Community  and
the State of Israel

1.

2.

3.

4.

5.

6.

7.

8.

By  its  Decision  1999/224/EC  of  22  February  1999,  the  Council  concluded  an
Agreement  on  Scientific  and  Technical  Cooperation  between  the  European
Community and the State of Israel, which entered into force on 8 March 1999.

The  Agreement  associates  the  State  of  Israel  with  all  the  activities  of  the  specific
programmes  of  the  5th  Framework  Programme  of  the  European  Community  for
research,  technological  development  and  demonstration  activities.  Article 12(4)  of
the  Agreement  provides  that  "where  the  Community  adopts  a  new  multiannual
framework  programme  for  research  and  development,  this  Agreement  may  be
renegotiated or renewed under mutually agreed conditions".

On  29  March  2002  the  State  of  Israel  submitted  an  official  request  to  the
Commission for the renewal of the Agreement associating Israel with the activities of
the  5th  Framework  Programme  of  the  European  Community.  The  renewed
Agreement  would associate  the  State  of  Israel  with  all  the  activities  of  the  specific
programmes  of  the  6th  Framework  Programme  of  the  European  Community  for
research, technological development and demonstration activities (2002-2006).

Since cooperation under the Agreement has proved satisfactory, its renewal would be
in the interests of the Community in order to enlarge the European Research Area for
the implementation of the 6th Framework Programme.

Consequently,  on  12  August  2002  the  Commission  requested  the  Council  to
authorise it to negotiate the renewal of the current Agreement. On 5 November 2002
the  Council  authorised  the  negotiations,  and  also  envisaged  the  negotiation  of
provisional  application  of  the  renewed  Agreement.  Provisional  application  would
enable  Israeli  entities  to  participate  in  the  first  calls  for  proposals  under  the  6th
Framework Programme.

The renewal of the Agreement has been negotiated in accordance with the directives
annexed to the Council Decision of 5 November 2002. The negotiations culminated
in  the  draft  Agreement  and  the  Annexes  thereto  which  are  attached  and  were
initialled on 17 December 2002 by the authorised representatives of the two parties.

The  draft  Agreement  is  based  on  the  principles  of  mutual  benefit,  reciprocal
opportunities for participating in each party's programmes and activities in the areas
covered  by  the  Agreement,  non-discrimination,  effective  protection  of  intellectual
property and equitable sharing of intellectual property rights.

In the light of the  above considerations, the Commission proposes that the  Council
should decide

–  that the Agreement should be signed on behalf of the European Community and
authorise the President of the Council to designate the person empowered to sign
on behalf of the Community;

–  that the Agreement should be applied on a provisional basis upon signature.

2

Proposal for a

COUNCIL DECISION

concerning the signature of the Agreement on Scientific and Technical Cooperation
between the European Community and the State of Israel

THE COUNCIL OF THE EUROPEAN UNION,

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

Having regard to the proposal from the Commission1,

Whereas:

(1)

(2)

(3)

(4)

(5)

By  its  Decision  1999/224/EC  of  22  February  19992,  the  Council  concluded  an
Agreement  on  Scientific  and  Technical  Cooperation  between 
the  European
Community  and  the  State  of  Israel,  which  entered  into  force  on  8  March  1999;  the
Agreement  associates  the  State  of  Israel  with  all  the  activities  of  the  specific
programmes  of  the  Fifth  Framework  Programme  of  the  European  Community  for
research, technological development and demonstration activities.

Article 12(4)  of  the  Agreement  provides  that  "where  the  Community  adopts  a  new
multiannual  framework  programme  for  research  and  development,  this  Agreement
may be renegotiated or renewed under mutually agreed conditions".

On 5 November 2002 the Council authorised negotiations with a view to the renewal
of  the  current  Agreement,  and  also  envisaged  the  negotiation  of  provisional
application  of  the  renewed  Agreement.  Provisional  application  would  enable  Israeli
entities  to  participate  in  the  first  calls  for  proposals  under  the  Sixth  Framework
Programme.

The  negotiations  culminated  in  the  draft  Agreement  initialled  on  17  December  2002
by the authorised representatives of the two parties.

Subject to possible conclusion at a later date, the Agreement initialled on 17 December
2002  should  be  signed  and  provision  should  be  made  for  its  provisional  application
upon signature,

1

2

…
OJ L 83, 27.03.1999, p.50.

3

                                                
HAS DECIDED AS FOLLOWS:

Article 1

Subject to 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 Community, the Agreement on
Scientific  and  Technical  Cooperation  between  the  European  Community  and  the  State  of
Israel.

The text of the Agreement is attached to this Decision.

Article 2

The Agreement shall apply on a provisional basis upon signature.

Done at Brussels,

For the Council
The President

4

AGREEMENT

ON SCIENTIFIC AND TECHNICAL COOPERATION

BETWEEN THE EUROPEAN COMMUNITY

AND THE STATE OF ISRAEL

THE EUROPEAN COMMUNITY (hereinafter "the Community"),

of the one part, and

THE STATE OF ISRAEL (hereinafter "Israel"),

of the other part,

hereinafter referred to as the "Parties",

CONSIDERING  the  importance  of  current  scientific  and  technological  cooperation
between  Israel  and  the  Community  and  their  mutual  interest  in  strengthening  it  in  the
context of the establishment of the European Research Area

WHEREAS Israel and the Community are currently implementing research programmes
in fields of common interest;

WHEREAS  Israel  and  the  Community  have  an  interest  in  cooperating  on  these
programmes to their mutual benefit;

CONSIDERING  the  interest  of  both  Parties  in  encouraging  the  mutual  access  of  their
research entities to research and development activities in Israel on the one hand, and to
the Community's framework programmes for research and technological development on
the other;

CONSIDERING the Euro-Mediterranean Agreement establishing an association between
the  European  Communities  and  their  Member  States,  on  the  one  part  and  the  State  of
Israel, of the other part, entered into force on 1st June 2000 according to which the Parties
undertake  to  intensify  scientific  and  technological  cooperation  and  agree  to  set  out  the
arrangements  for  the  implementation  of  this  objective  in  separate  agreements  to  be
concluded for this purpose;

WHEREAS, the Community and Israel have concluded an Agreement on Scientific and
Technical  Cooperation  for  the  duration  of  the  Fifth  Framework  Programme,  which
provides for its renewal under mutually agreed conditions;

WHEREAS, by Decision No 1513/2002/EC, the European Parliament and the Council of
the  European  Union  adopted  the  Sixth  Framework  Programme  of  the  European
Community  for  research,  technological  development  and  demonstration  activities,
contributing  towards  the  creation  of  the  European  Research  Area  and  to  innovation
(2002-2006), hereinafter called the "Sixth Framework Programme";

WHEREAS,  without  prejudice  to  the  relevant  provisions  of  the  Treaty  establishing  the
European Community, this Agreement and any activities entered into under it will in no
way affect the powers vested in the Member States to undertake bilateral activities with

5

Israel  in  the  fields  of  science,  technology,  research  and  development,  and  to  conclude,
where appropriate, agreements to that end,

HAVE AGREED AS FOLLOWS:

Article 1

Scope

1.

2.

Israel  shall  be  associated,  under  the  terms  and  conditions  established  by,  or
referred to in this Agreement and its Annexes, in the European Community 6th
Framework  Programme 
technological  development  and
demonstration  activities  (2002-2006)  (hereinafter  called  "EC  6th  Framework
programme”), as established by Decisions of the European Parliament and of the
Council N° 1513/2002/EC3 and Regulation N° 2321/2002/EC4, and Decisions of
the Council N° 2002/834/EC5, 2002/835/EC6 and 2002/836/EC7.

research, 

for 

In  addition  to the  association referred to in  paragraph  1,  cooperation  may  take
the following forms and means:

–  Regular  discussions  on  the  orientations  and  priorities  for  research  policies

and planning in Israel and the European Community;

–  Discussions on cooperation prospects and development;

–  Timely  provision  of 

implementation  of
information  concerning 
programmes and research projects of Israel and of the European Community,
and concerning the results of work undertaken within the framework of this
Agreement;

the 

–  Joint meetings;

–  Visit and exchanges of research workers, engineers and technicians;

–  Regular  and  sustained  contacts  between  programme  or  project  managers  of

Israel and the European Community;

–  Participation of experts in seminars, symposia and workshops.

3

4

5

6

7

OJ L 232, 29.08.2002, p. 1.
OJ L 355, 30.12.2002. p. 23.
OJ L 294, 29.10.2002, p. 1.
OJ L 294, 29.10.2002, p. 44
OJ L 294, 29.10.2002, p. 60

6

                                                
Article 2

Terms and conditions with respect to the association of Israel in the EC 6th
Framework programme

1.

Legal entities of Israel shall participate in indirect actions and in activities of the
Joint  Research  Centre  of  the  EC  6th  Framework  programme  under  the  same
conditions as those applicable to legal entities of Member States of the European
Union,  subject  to  the  terms  and  conditions  established  by,  or  referred  to  in
Annexes  I  and  II.  For  Israeli  research  entities,  the  terms  and  conditions
applicable  for  the  submission  and  evaluation  of  proposals  and  those  for  the
granting and conclusion of contracts under Community programmes shall be the
same  as  those  applicable  for  contracts  concluded  under  the  same  programmes
with research entities in the Community, taking into account the mutual interests
of the Community and Israel.

Legal entities of the European Community  shall  participate  in  Israel's  research
programmes and projects in themes equivalent to those of the EC 6th Framework
programme  under  the  same  conditions  as  those  applicable  to  legal  entities  of
Israel, subject to the terms and conditions established by Annexes I and II.

2.

Israel shall pay for every year of the EC 6th Framework programme's duration a
financial contribution to the General Budget of the European Union.

The financial contribution of Israel shall be added to the amount earmarked each
year  in  the  General  Budget  of  the  European  Union  for  commitment
appropriations to meet the financial obligations arising out of different forms of
measures necessary for the execution, management and operation of the EC 6th
Framework programme.

The  rules  governing  the  calculation  and  the  payment  of  the  financial
contribution of Israel are set out in Annex III.

3.

Representatives of Israel shall participate as observers in the committees of the
EC 6th Framework programme established by Decision N° 1999/468/EC.

These committees shall meet without the presence of representatives of Israel at
the time of voting. Israel will be informed of the result.

Participation as referred to in this paragraph shall take the same form, including
procedures  for  receipt  of  information  and  documentation,  as  that  applicable  to
representatives from Member States of the European Union.

Israeli  representatives  may  participate  in  the  meetings  of  the  Scientific  and
Technical  Research  Committee  (CREST).  This  committee  shall  meet  without
the presence of Israeli representatives at the time of voting and otherwise only in
special circumstances. Israel will be informed.

4.

Representatives  of  Israel  shall  participate  as  observers  in  the  Board  of
Governors of the Joint Research Centre.

7

Participation as referred to in this paragraph shall take the same form, including
procedures  for  receipt  of  information  and  documentation,  as  that  applicable  to
representatives from Member States of the European Union.

Travel  costs  and  subsistence  costs  incurred  by  representatives  of  Israel
participating in meetings of the committees and bodies referred to in this Article,
or  in  meetings  related  to  the  implementation  of  the  EC  6th  Framework
programme organised  by the Community shall be reimbursed by the European
Community  on  the  same  basis  as  and  in  accordance  with  the  procedures
currently  in  force  for  representatives  of  the  Member  States  of  the  European
Union.

Article 3

Enhancement of cooperation

The  Parties  will  make  every  effort,  within  the  framework  of  their  applicable
legislation,  to  facilitate  the  free  movement  and  residence  of  research  workers
participating in the activities covered by this Agreement and to facilitate cross-
border movement of goods intended for use in such activities.

The Parties will ensure that no fiscal charge or levy shall be imposed upon the
transaction  of  transferring  of  funds  between  the  Community  and  Israel,  which
said funds are needed for the operation of activities covered by this agreement.

Article 4

European Community-Israel Research Committee

A joint committee called “EC-Israel Research Committee” shall be established,
whose functions shall include:

–  Ensuring, evaluating and reviewing the implementation of this Agreement;

–  Examining any measure of a nature to improve and develop cooperation;

–  Regularly discussing the future orientations and priorities of research policies
and  research  planning  in  Israel  and  the  Community  and  the  prospects  for
future cooperation.

The EC-Israel Research Committee, which shall be composed of representatives
of the Commission and of Israel, shall adopt its rules of procedure.

The  EC-Israel  Research  Committee  shall  meet  at 
least  once  a  year.
Extraordinary  meetings  shall  be  held  at  the  request  of  one  or  the  other  of  the
Parties.

5.

1.

2.

1.

2.

3.

Article 5

Final provisions

1.

Annexes I, II and III form an integral part of this Agreement.

8

2.

This Agreement is hereby concluded for the duration of the EC 6th Framework
programme.  It  shall  enter  into  force  on  the  date  on  which  both  Parties  have
notified  each  other  of  the  completion  of  their  procedures  for  that  purpose  and
shall take effect starting the 16.12.02.

This  Agreement  may  only  be  amended  in  writing  by  common  consent  of  the
Parties. The entry into force of the amendments will follow the same procedure
as those applicable for the Agreement itself.

Either  of  the  Parties  may  terminate  this  Agreement  at  any  time  upon  twelve
months written notice.

Projects and activities in progress at the time of termination and/or expiry of this
Agreement shall continue until their completion under the conditions laid down
in this Agreement.

3.

Pending  the  completion  by  the  Parties  of  their  internal  procedures  for  its
conclusion,  the  Parties  shall  provisionally  apply  this  Agreement  upon  its
signature.

Should  a  Party  notify  the  other  that  it  shall  not  conclude  the  Agreement,  it  is
hereby mutually agreed that:

–  The  Community  shall  reimburse  to  Israel  its  contribution  to  the  General

Budget of the European Union referred to in Article 2, paragraph 2;

–  However, funds committed by the Community in relation to the participation
of Israeli legal entities in indirect actions, including reimbursements referred
to  in  Article  2,  paragraph  5,  shall  be  deducted  by  the  Community  from  the
above-mentioned reimbursement;

–  Projects  and  activities  launched  under  this  provisional  application  and  that
are  still  in  progress  at  the  time  of  the  above-mentioned  notification  shall
continue  until  their  completion  under  the  conditions  laid  down  in  this
Agreement.

Should  the  European  Community  decide  to  revise  the  EC  6th  Framework
programme, it shall notify  Israel  of  the  exact  content  of  these  revisions  within
one week of their adoption by the European Community.

By derogation from subparagraph 3 and 4 of paragraph 2, this Agreement may
be  terminated  under  mutually  agreed  conditions  should  either  of  the  Parties
notify one another within one month after the adoption of the revisions referred
to in subparagraph 1 of its intention to terminate this Agreement.

Where  the  European  Community  adopts  a  new  multi-annual  framework
technological  development  and  demonstration
programme  for  research, 
activities,  a  new  Agreement  may  be  renegotiated  or  renewed  under  mutually
agreed conditions, at the request of either of the Parties.

This  Agreement  shall  apply,  on  the  one  hand,  to  the  territories  in  which  the
Treaty  establishing  the  European  Community  is  applied  and  under  the
conditions laid down in that Treaty and, on the other hand, to the territory of the
State of Israel.

9

4.

5.

6.

7.

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

Done at …on …

Done at …on

For the Government of the State of Israel

For the European Community

10

ANNEX I

Terms and conditions for the participation of legal entities of Member States of the
European Union and of Israel

For the purpose of this Agreement, a legal entity means any natural person, or any legal
person  created  under  the  national  law  of  its  place  of  establishment  or  under  European
Community  law,  having  legal  personality  and  being  entitled  to  have  rights  and
obligations of any kind in its own name.

I.

1.

2.

3.

II.

1.

TERMS  AND  CONDITIONS  FOR  THE  PARTICIPATION  OF  LEGAL  ENTITIES  OF
ISRAEL IN INDIRECT ACTIONS OF THE EC 6TH FRAMEWORK PROGRAMME

Participation and funding of legal entities established in Israel in indirect actions
of the EC 6th Framework programme shall follow the conditions laid down for
“associated  countries”  in  the  Regulation  of  the  European  Parliament  and  the
Council N° 2321/2002/EC8.

Israel  shall  be  taken  into  consideration  alongside  Member  States  of  the
European  Union  for  the  implementation  of  any  indirect  action  of  the  EC  6th
Framework  programme  through  Article  169  of  the  Treaty  establishing  the
European  Community,  subject  to  the  participation  of  at  least  two  of  these
Member  States  or  Associated  candidate  countries  defined  in  Article  2  of
Regulation N° 2321/2002/EC in such an indirect action.

Legal  entities  of  Israel  shall  be  taken  into  consideration,  alongside  European
Community’s  ones,  for  the  selection  of  independent  experts  for  the  tasks  and
under  the  conditions  foreseen  in  Articles  10,  11  and  18  of  Regulation  N°
2321/2002/EC and for participation in various groups and advisory Committees
of the EC 6th Framework programme.

In  conformity  with  Regulation  N°  2321/2002/EC  and 
the  European
Community's  Financial  Regulations,  contract  concluded  by  the  European
Community with any legal entity of Israel in order to perform an indirect action
shall provide for controls and audits to be carried out by, or under the authority
of, the Commission or the Court of Auditors of the European Communities.

In a spirit of cooperation and mutual interest, the relevant Authorities of Israel
shall  provide  any  reasonable  and  feasible  assistance  as  may  be  necessary  or
helpful under the circumstances to perform such controls and audits.

TERMS  AND  CONDITIONS  FOR  THE  PARTICIPATION  OF  LEGAL  ENTITIES  OF
MEMBER  STATES  OF  THE  EUROPEAN  UNION  IN  ISRAEL'S  RESEARCH
PROGRAMMES AND PROJECTS

The  participation  of  legal  entities  established  in  the  European  Community,
created  under  the  national  law  of  one  of  the  Member  States  of  the  European
Union  or  under  European  Community  law,  in  projects  of  Israel  research  and
development  programmes  may  require  the  joint  participation  of  at  least  one

8

OJ L 355, 30.12.2002. p. 23.

11

                                                
2.

3.

(i)

(ii)

(iii)

(iv)

(v)

4.

Israeli  legal  entity.  Proposals  for  such  participation  shall  be  submitted  jointly
where required with the Israeli legal entity/ies.

Subject  to  paragraph  1  and  to  Annex  II,  the  rights  and  obligations  of  legal
entities established in the European Community participating in Israel's research
projects within research and development programmes, the terms and conditions
applicable  for  the  submission  and  evaluation  of  proposals  and  for  the  granting
and  conclusion  of  contracts  in  such  projects  shall  be  subject  to  Israel's  laws,
regulations and  government directives  governing the operation  of  research  and
development  programmes,  as  well  as  national  security  constraints  where
applicable,  as  applicable  to  Israeli  legal  entities  and  assuring  equitable
treatment, taking into account the nature of the cooperation between  Israel and
the European Community in this field.

Funding  of  legal  entities  established  in  the  European  Community  participating
in Israel's research projects within research and development programmes shall
be subject to Israel's laws, regulations and government directives governing the
operation of research and development programmes, as well as national security
constraints  where  applicable,  as  applicable  to  non-Israeli  legal  entities
participating  in  Israel's  research  projects  within  research  and  development
programmes. In the case funding is not provided to the non-Israeli legal entities,
European legal entities shall cover their own costs, including their relative share
of the project’s general management and administrative costs.

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

The Office of the Chief Scientist in the Ministry of Industry and Trade for joint
industrial research  and development projects with Israeli companies. There are
no predefined fields in this research and development programme. Joint project
proposals may be submitted in any field of industrial research and development.
In  addition,  within  the  Magnet  programme,  proposals  may  be  submitted  by
Israeli  companies  for  cooperation  with  research  entities  established  in  the
Community.  Such  cooperation  will  require  the  agreement  of  the  relevant
consortium and the Magnet management;

The  Ministry  of  Science,  Culture  and  Sport  for  strategic  research  in  priority
topics.  The  topics  are  determines  yearly  and  are  specified  in  an  open  call  for
proposals;

The Office of the Chief Scientist in the Ministry of Agriculture – The Fund for
the Encouragement of Agricultural Research;

The Office of the Chief Scientist in the Ministry  of  National  Infrastructures  in
the fields of Energy, Infrastructure Development and Earth Sciences;

The  Office  of  the  Chief  Scientist  in  the  Ministry  of  Health  and  the  newly
founded  Medical  Research  Council,  which  included  the  granting  Agency  for
Biomedical Research.

Israel shall regularly inform the European Community and Israeli legal entities
of  current  Israeli  programmes  and  participation  opportunities  for  legal  entities
established in the European Community.

12

ANNEX II

Principles on the allocation of intellectual property rights

I.

APPLICATION

For the purposes of this Agreement, "intellectual property" shall have the meaning given
in Article 2 of the Convention establishing the World Intellectual Property Organisation,
done at Stockholm on 14 July 1967.

For  the  purposes  of  this  Agreement,  knowledge  shall  mean  the  results,  including
information,  whether  or  not  they  can  be  protected,  as  well  as  copyrights  or  rights
pertaining to such information following applications for, or the issue of patents, designs,
plant varieties, supplementary protection certificates or similar forms of protection;

II.

1.

2.

INTELLECTUAL PROPERTY RIGHTS OF LEGAL ENTITIES OF THE PARTIES

Each  Party  shall  ensure  that  the  intellectual  property  rights  of  legal  entities  of
the other Party participating in activities carried out pursuant to this Agreement
and the related rights and obligations arising from such a participation, shall be
consistent with the relevant international conventions that are applicable to  the
Parties, including 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)  and  the  Paris  Convention
(Stockholm Act 1967).

Legal  entities  of  Israel  participating  in  an  indirect  action  of  the  EC  6th
Framework programme shall have rights and obligations on intellectual property
under  the  conditions  laid  down  in  the  Regulation  of  the  European  Parliament
and  the  Council  N°  2321/2002/EC9  and  in  the  contract  concluded  with  the
European Community accordingly, and that shall comply with paragraph 1.

Where  Israel  participates  in  an  indirect  action  of  the  EC  6th  Framework
programme  implemented  through  Article  169  of  the  Treaty  establishing  the
European  Community,  Israel  shall  have  the  same  rights  and  obligation  on
intellectual  property  as  those  of  the  participating  Member  States  laid  down  in
the  relevant  Decision  of  the  European  Parliament  and  the  Council  and  the
contract  concluded  with  the  European  Community  accordingly,  and  that  shall
comply with paragraph 1.

3.

Legal  entities  of  the  European  Community  participating  in  Israel's  research
programme or projects shall have the same rights and obligations on intellectual
property  as  those  of  legal  entities  established  in  Israel  participating  in  such
research programme or project, and that shall comply with paragraph 1.

9

OJ L 355, 30.12.2002. p. 23.

13

                                                
III.

INTELLECTUAL PROPERTY RIGHTS OF THE PARTIES

1.

a)

b)

2.

a)

b)

3.

a)

b)

c)

d)

Except if otherwise specifically agreed by the Parties, the following rules shall
apply  to  knowledge  generated  by  the  Parties  in  the  course  of  activities  carried
out within Article 1, paragraph 2 of this Agreement:

The  Party  generating  such  knowledge  shall  be  the  owner  of  that  knowledge.
Where their respective share of the work cannot be ascertained, they shall have
joint ownership of such knowledge.

The  Party  owning  that  knowledge  shall  grant  access  rights  on  it  to  the  other
Party  for  carrying  out  activities  referred  to  in  Article  1,  paragraph  2  of  this
Agreement. Such access rights shall be granted on a royalty-free basis.

Except if otherwise specifically agreed by the Parties, the following rules shall
apply to scientific literary works of the Parties:

In the case where a Party publishes scientific and technical data, information and
results,  by  means  of  journals,  articles,  reports,  books,  including  video  and
software,  arising  and  relating  to  activities  carried  out  pursuant  to  this
Agreement, a world-wide, non-exclusive, irrevocable, royalty-free licence shall
be granted to the other Party to translate, reproduce, adapt, transmit and publicly
distribute such works.

All  copies  of  data  and  information,  protected  by  copyright,  that  have  to  be
publicly distributed and prepared under this section 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.

Except if otherwise specifically agreed by the Parties, the following rules shall
apply to undisclosed information of the Parties:

When communicating to the other Party information relating to activities carried
out  pursuant  to  this  Agreement,  each  Party  shall  identify  those  information  it
wishes to remain undisclosed.

The receiving Party may under its own responsibility communicate undisclosed
information to bodies or persons under its authority for the specific purposes of
implementing this Agreement.

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  2.  The  Parties  shall  cooperate  in
developing  procedures  for  requesting  and  obtaining  prior  written  consent  for
such  wider  dissemination,  and  each  Party  will  provide  such  approval  to  the
extent permitted by its domestic policies, regulations and laws.

Non-documentary  undisclosed  or  other  confidential  information  provided  in
seminars  and  other  meetings  between  representatives  of  the  Parties  arranged
under this Agreement, or information arising from the attachment of staff, use of
facilities or indirect actions, shall remain confidential when the recipient of such
undisclosed or other confidential or privileged information was  made aware of

14

the  confidential  character  of  the  information  communicated  at  the  time  such
communication was made, according to paragraph 1.

e)

Each Party shall endeavour to ensure that undisclosed information received by it
under paragraph 1 and 3 is  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  laid  down  in  paragraph  1  and  3,  it
shall immediately inform the other Party. The Parties shall thereafter consult to
define an appropriate course of action.

15

Rules governing the financial contribution of Israel to the EC 6th Framework programme

ANNEX III

I.

1.

2.

3.

II.

1.

CALCULATION OF ISRAEL’S FINANCIAL CONTRIBUTION

The  financial  contribution  of  Israel  to  the  EC  6th  Framework  programme  shall  be
established  on  a  yearly  basis  in  proportion  to,  and  in  addition  to,  the  amount
available  each  year  in  the  general  budget  of  the  European  Union  for  commitment
appropriations needed for the implementation, management and operation of the EC
6th Framework programme.

The  proportionality  factor  governing the  contribution  of  Israel  shall  be  obtained  by
establishing the ratio between the gross domestic product of Israel, at market prices,
and the sum  of  gross  domestic products,  at  market prices,  of  the  Member  States of
the European Union and Israel. This ratio shall be calculated on the basis of the latest
statistical  data  pertaining  to  the  same  year  from  the  International  Bank  for
Reconstruction  and  Development,  available  at  the  time  of  publication  of  the
preliminary draft budget of the European Union.

The Commission shall communicate to Israel, as soon as possible, and at the latest on
1  September  of  the  year  before  each  financial  year,  the  following  information
together with relevant background material:

–  the amounts in commitment appropriations, in the statement of expenditure of the
preliminary draft  budget  of  the European Communities  corresponding  to  the  EC
6th Framework programme;

–  the  estimated  amount  of  the  contributions  derived  from  the  preliminary  draft
budget,  corresponding  to  the  participation  of  Israel  in  the  EC  6th  Framework
programme according to paragraph 1, 2 and 3.

Once  the  general  budget  has  been  finally  adopted,  the  Commission  shall
communicate  to  Israel,  in  the  statement  of  expenditure  corresponding  to  Israel's
participation, the final amounts referred to in the first subparagraph.

PAYMENT OF ISRAEL'S FINANCIAL CONTRIBUTION

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

–  of six-twelfths of Israel's contribution not later than 20 February;

–  and six-twelfths of Israel's contribution not later than 15 July.

However, the six-twelfths to be paid not later than 20 February shall be 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.

16

2.

3.

4.

5.

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

The  contribution  of  Israel  shall  be  expressed  and  paid  in  Euro.  Payment  by  Israel
shall be credited to the Community programmes as budget  receipts allocated to the
appropriate budget heading in the statement of revenue of the general budget of the
European Communities. The financial regulation applicable to the general budget of
the European Communities shall apply to the management of the appropriations.

Israel  shall  pay  its  contribution  under  this  Agreement  according  to  the  schedule  in
paragraph 1.

Any delay in the payment of the contribution shall give rise to the payment of default
interest by Israel on the outstanding amount from the due date. The interest rate shall
be the rate applied by the European Central Bank to its main refinancing operations
in Euro on the due date, increased by 1.5 percentage points.

In case the delay in the payment of the contribution is such that it may significantly
jeopardise  the  implementation  and  management  of  the  programme,  participation  in
the  programme  of  Israel  for  the  concerned  financial  year  will  be  suspended  by  the
Commission following the absence of payment 20 working days after a formal letter
of  reminder  sent  to  Israel,  without  prejudice  to  the  Community’s  obligations
according  to  contracts  already  concluded  pertaining  to  the  implementation  of
selected indirect actions.

At  the  latest  on  31  May  of  the  year  following  a  financial  year,  the  statement  of
appropriations  for  the  EC  6th  Framework  programme  that  financial  year,  shall  be
prepared  and  transmitted  to  Israel  for  information,  according  to  the  format  of  the
Commission's revenue and expenditure account.

The Commission, at the time of the closure of the accounts relating to each financial
year,  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 Israel.

This  regularisation  shall  take  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  next
financial year, and for the last financial year in July 2007. Further regularisation shall
occur every year until July 2010.

17

LEGISLATIVE FINANCIAL STATEMENT

Policy area(s): RESEARCH & TECHNOLOGICAL DEVELOPMENT

Activit(y/ies): International scientific and technical cooperation

TITLE OF ACTION: PROPOSAL FOR A COUNCIL DECISION CONCERNING THE SIGNATURE OF THE
AGREEMENT  ON SCIENTIFIC  AND TECHNICAL COOPERATION  BETWEEN  THE EC  AND
ISRAEL

1.

BUDGET LINE(S) + HEADING(S)

The contributions of Israeli entities to direct and indirect actions, as well as costs in connection
with the implementation of the Agreement (travelling expenses of European experts and of EC
officials  on  mission,  workshops,  seminars,  meetings)  will  be  charged  to  the  specific  budget
headings of the specific programmes of the European Community RTD Framework Programme
(Part B, Article B6-601)

Israel’s contribution (revenue):
Chapter 60 (revenue), Articles B6-451 and B6-551 (expenditure)
Israel’s  contribution  to  the  Framework  Programme  budget  will  be  proportionate  to  its  gross
domestic  product  (GDP)  compared  with  the  sum  of  its  GDP  and  the  GDP  of  the  EU  Member
States.

2.

2.1.

2.2.

OVERALL FIGURES

Total allocation for action (Part B): € million for commitment

Period of application:

2002-2006. Renewal arrangements are laid down in Article 12 of the Agreement.

2.3.

Overall multiannual estimate of expenditure:

(a)

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

€ million  (to three decimal places)

2003

2004

2005

2006

Commitments

Payments

0

0

0

0

0

0

0

0

18

(b)

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

Commitments

0.660

0.660

0.660

0.660

Payments

0.660

0.660

0.660

0.660

Sous-total a+b

Commitment

0.660

0.660

0.660

0.660

Payments

0.660

0.660

0.660

0.660

(c)

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

Commitments/ payments

0

0

0

0

TOTAL a+b+c

Commitments

Payments

0.660

0.660

0.660

0.660

0.660

0.660

0.660

0.660

2.4.

Compatibility with financial programming and financial perspective

[YES]

Proposal is compatible with existing financial programming.

2.5.

Financial impact on revenue:10

[YES]

Proposal has financial impact: financial contribution by a third country to
the  budget  of  the  Sixth  Framework  Programme.  The  effect  on  revenue  is  as
follows:

Israel's financial contribution to the Framework Programme will be proportionate to its
GDP compared with the sum of its GDP and the GDP of the EU Member States.

Estimated contribution to FP6 on the basis of 1999 GDP:

GDP EUR 15

8 498 59911

GDP Israel

100 840

Proportionality factor:

 GDP
 EUR

Israel
(cid:2)
15 

Israel

GDP

(cid:1)

100
599
8

840
439

(cid:1)

17%1.

ratio

10

11

For further information, see separate Explanatory Note.
Source : World Development Indicators, World Bank, Washington, February 2001, Table 12 – Structure of
output, p. 296-297.

19

 
                                                
EC budget 6th

Contribution (Estimate)

2003

2004

2005

2006

3 759

4 004

4 190

4 317

x 1.17 %

x 1.17 %

x 1.17 %

x 1.17 %

Total

16 270

44.4

47.2

49.4

50.9

191.9

3.

BUDGET CHARACTERISTICS

(2003-2006)

Type of expenditure

New

EFTA
contribution

Contributions
from  candidate
countries

in

Heading 
financial
perspective

NCE

DA

NO

YES

NO

No 3

4.

LEGAL BASIS

Articles 170 and 300 of the EC Treaty.

4.1.

Titles and references

–  Treaty  establishing  the  European  Community,  and  in  particular  Article  170(2)  thereof,  in
conjunction  with  the  first  sentence  of  the  first  subparagraph  of  Article  300(2)  and  the  first
subparagraph of Article 300(3).

–  Decision  No  1513/2002/EC  of  the  European  Parliament  and  the  Council  of  27  June  2002
concerning  the  Sixth  Framework  Programme  of  the  European  Community  for  research,
technological  development  and  demonstration  activities,  contributing  to  the  creation  of  the
European Research Area and to innovation (2002-2006).

5.

DESCRIPTION AND GROUNDS

5.1.

Need for Community intervention

is 

Community  funding 
the
implementation  of  the  Framework  Programme,  including  the  budget  heading  relating  to
administrative  expenditure  borne  by  the  Community  (missions  by  experts  and  EU  officials;
organisation of workshops, seminars and meetings in the EC and Israel).

the  planned  cooperation  forms  part  of 

indispensable  as 

5.1.1. Objectives pursued

The  Agreement  should  enable  Israel  and  the  Community  to  derive  mutual  benefit  from  the
scientific  and  technical  progress  achieved  through  their  reciprocal  research  programmes,  with
participation  by  the  Israeli  scientific  community  and  industry  in  programmes  of  the  European
Community  RTD  Framework  Programmes  and  non-subsidised  participation  in  Israeli  publicly
financed research activities by entities established in the Community.

20

Thanks to the direct and indirect effects of the cooperation, the beneficiaries will be the scientific
community, the private sector and the general public in the EC and Israel.

5.2.

Action envisaged and budget intervention arrangements

Budgetary arrangements will be based on the type of cooperation proposed (association of a third
country in specific programmes of Community research).

5.3.

Methods of implementation

Direct management by the Commission.

6.

6.1.

6.2.

FINANCIAL IMPACT

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

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

7.

IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE

7.1.

Impact on human resources

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

No officials are being specifically assigned to manage the Agreement. It will be managed by the
staff authorised for the Sixth Framework Programme.

7.2.

Overall financial impact of human resources

21

7.3.

Other administrative expenditure deriving from the action

Expenditure on management of the Agreement (estimate)

Travel expenses per year
EU experts' missions to Israel
within the framework of the specific programmes covering the four activities

150 EU experts (for 400 projects) x 7 nights

Cost per mission:

- 1 return journey

- daily allowance

- experts' fees

((cid:1) 918 €)

(150 € x 7)

(250 € x 7)

TOTAL

€ 918

€ 1 050

€ 1 750

€ 3 718

total cost for 150 missions

€ 560 000

EU officials' missions to Israel
(DGs RTD, INFSO, ENTR, AGRI, FISH, TREN, JRC)

28 missions per year (management of the Agreement as a whole) (4 per DG)
+ 16 missions per year (specific programmes)

Total : 44 missions per year

- return journey Brussels-Tel Aviv ((cid:1) 918 €)

- hotel :

3 nights (210 €/night)

- daily allowance

3 days x 150 €

TOTAL

total cost for 44 missions

Workshops/seminars

2/year (estimate):

€ 918

€ 630

€ 450

€ 1 998

€ 88 000

€ 12 000

Total

660 000 euros/year

The amounts correspond to total expenditure for twelve months.

I.

II.

III.

Annual total (7.2 + 7.3)

Duration of action

Total cost of action (I x II)

€ 660 000

4 years

€ 2 640 000

8.

FOLLOW-UP AND EVALUATION

8.1.

Follow-up arrangements

All the activities carried out  in the  framework of the Cooperation Agreement will be regularly
evaluated  by  the  Commission  departments  and  will  also  be  subject  to  one  joint  Community-
Israel evaluation each year. Evaluation will cover:

22

(a)

Performance indicators:

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

number  of  proposals  put  forward  by  Israel  compared  with  the  number  of  proposals
selected for funding under the Framework Programme;

number  of  proposals  put  forward  under  the  specific  programmes  of  the  Framework
Programme  compared  with  the  relative  share  (1%)  of  Israel’s  participation  in  those
programmes;

number  of  Israeli  proposals  selected  for  funding  in  the  specific  programmes  of  the
Framework Programme compared with its relative participation in those programmes.

(b)

Gathering of information:

On the basis of data from the specific programmes of the Framework Programme.

(c)

Corrections :

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

8.2.

Evaluation

At  the  end  of  the  6th  Framework  Programme  the  Commission  will  evaluate  all
cooperation activities covered by the Agreement.

9.

ANTI-FRAUD MEASURES

When the implementation of the Framework Programme calls for the use of external contractors
or implies granting financial contributions to third parties, the Commission will carry out, where
appropriate,  financial  audits, in particular if it has reasons to doubt the realistic nature of  work
performed or described in the activity reports.

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

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

In  order  to  achieve  this  aim,  rules  on  checks,  measures  and  sanctions,  with  reference  to
Regulations 2988/95, 2185/96, 1073/99 and 1074/99 will be included in all contracts concluded
in the implementation of the Framework Programme.

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

23

– 

– 

– 

– 

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

the participation of administrative inspectors in the field of fraud-fighting, in accordance
with Regulations 2185/96, 1073/99 and 1074/99;

the application of administrative sanctions for all intentional or negligent irregularities
in  the  implementation  of  the  contracts,  in  accordance  with  framework  Regulation
2988/95, including a black-listing mechanism;

the fact that recovery orders in the case of irregularities and fraud may be enforceable in
accordance with Article 164 of the EAEC Treaty.

In  addition,  and  as  routine  measures,  an  internal  audit  and  control  programme  in  respect  of
scientific  and  budgetary  aspects  will  be  carried  out  by  the  DG  Research  staff  responsible;  an
internal  audit  will  be  carried  out  by  the  Internal  Audit  Unit  of  DG  Research;  and  local
inspections will be carried out by this Unit and the Court of Auditors.

24