Proposal for a Decision of the Council and of the Commission on the signature on behalf of the European Community and of the European Atomic Energy Community of the Agreement on Scientific and Technological Cooperation between the European Communities of the one part and the Swiss Confederation of the other part
Date: 2003-11-25
Institutions: European Commission
Subjects: EU research policy, Switzerland, cooperation agreement (EU), scientific cooperation, signature of an agreement, technical cooperation

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 25.11.2003
COM(2003) 656 final

Proposal for a

DECISION OF THE COUNCIL AND OF THE COMMISSION

on the signature on behalf of the European Community and of the European Atomic
Energy Community of the Agreement on Scientific and Technological Cooperation
between the European Communities of the one part and the Swiss Confederation of the
other part

(presented by the Commission)

1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

EXPLANATORY MEMORANDUM

By  their  joint decision  of  4 April 2002  the  Council  and  the  Commission  concluded
the  Agreement  on  Scientific  and  Technological  Cooperation  between  the  European
Community  and  the  European  Atomic  Energy  Community  of  the  one  part  and  the
Swiss  Confederation  of  the  other  part.  This  Agreement  entered  into  force  on
1 June 2002.

This Agreement associated Switzerland in the specific programmes of the Fifth (EC
and Euratom) Framework Programmes. Article 9(2) thereof provided for renewal of
the Agreement should the Community adopt new Framework Programmes.

On 7 June 2002, as the Sixth (EC and Euratom) Framework Programmes were being
adopted  by  the  Communities,  the  Swiss  Confederation  officially  requested  the
Commission  to  renew  the  abovementioned  Agreement  with  a  view  to  being
associated in them.

It is in the interest of the Communities to renew this Agreement in order to associate
the Swiss Confederation in the Sixth (EC and Euratom) Framework Programmes and
thereby expand the European Research Area.

Consequently,  on  26  November  2002  the  Commission  proposed  that  the  Council
authorise it to negotiate the renewal of this Agreement with a view to associating the
Swiss  Confederation  in  the  Sixth  (EC  and  Euratom)  Framework  Programmes.  On
20 February 2003 the Council gave the Commission a mandate to negotiate renewal
of the Agreement, including the possibility of provisional application so as to allow
legal entities from the Swiss Confederation to participate, as early as possible, in the
calls under the Sixth (EC and Euratom) Framework Programmes.

Renewal  of  this  Agreement  has  been  negotiated  in  line  with  the  negotiating
directives annexed to the Council decision of 20 February 2003. These negotiations
were completed on 5 September 2003, when the authorised representatives of the two
parties initialled the annexed draft Agreement.

This  new  Agreement  is  based  on  the  principles  laid  down  in  its  predecessor,
particularly  with  regard  to  the  contribution  from  the  Swiss  Confederation  to  the
budgets  for  the  Sixth  (EC  and  Euratom)  Framework  Programmes.  However,  it  has
been  adapted  to  take  account  of  the  specifics  of  the  Sixth  (EC  and  Euratom)
Framework  Programmes.  In  addition,  Annex  C  contains  new  provisions  on
cooperation  between  the  Communities  and  the  Swiss  Confederation  on  control  of
Community funds.

Finally, following the entry into force of the Sixth Framework Programmes, in view
of  the  fact  that  the  associated  States  make  annual  contributions  to  their  individual
budgets and of the time needed for negotiation of this renewal, it is proposed that this
Agreement should enter into  force  on  1 January 2004 and, if  it is not concluded in
time, should apply provisionally from that date on, subject to signature at a later date.

9. 

In the light of the foregoing, the Commission proposes that the Council:

– 

approve,  on  behalf  of 
the
Commission, acting on behalf of the European Atomic Energy Community, the

the  European  Community, 

together  with 

2

signature  of  the  Agreement  on  Scientific  and  Technological  Cooperation
the  Swiss
between  the  European  Communities  of 
Confederation of the other part; and

the  one  part  and 

– 

on  this  basis,  authorise  provisional  application  of  the  Agreement  with  effect
from 1 January 2004, under the terms laid down therein, if the Agreement has
not been concluded by that date.

3

Proposal for a

DECISION OF THE COUNCIL AND OF THE COMMISSION

on the signature on behalf of the European Community and of the European Atomic
Energy Community of the Agreement on Scientific and Technological Cooperation
between the European Communities of the one part and the Swiss Confederation of the
other part

THE COUNCIL OF THE EUROPEAN UNION,

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

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)
thereof,

Having  regard  to  the  Treaty  establishing  the  European  Atomic  Energy  Community,  and  in
particular the second subparagraph of Article 101 thereof,

Having regard to the proposal from the Commission1,

Whereas:

(1) 

(2) 

(3) 

(4) 

The  Commission  has  negotiated,  on  behalf  of  the  Communities,  an  Agreement  on
Scientific and Technological Cooperation with the Swiss Confederation.

This  Agreement  was 
5 September 2003.

initialled  by 

the 

representatives  of 

the  Parties  on

Subject to conclusion at a later date, the Agreement should be signed on behalf of the
Communities.

Subject to reciprocity, this Agreement should be applied on a provisional basis as from
1 January 2004  pending  the  completion  of  the  procedures  for  its  conclusion,  as
provided for by Article 14(2) thereof,

HAVE DECIDED AS FOLLOWS:

Article 1

Subject  to  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
Agreement on Scientific and Technological Cooperation between the European Communities
and the Swiss Confederation.

1

OJ C […] […], p. […]

4

                                                
Subject to conclusion at a later date, the President of the Commission is hereby authorised to
designate  the  person  empowered  to  sign,  on  behalf  of  the  European  Atomic  Energy
Community,  the  Agreement  on  Scientific  and  Technological  Cooperation  between  the
European Communities and the Swiss Confederation.

Article 2

Subject to reciprocity,  the  Agreement on  Scientific and  Technological Cooperation  between
the  European  Communities  and  the  Swiss  Confederation  shall  be  applied  on  a  provisional
basis as from 1 January 2004 pending the completion of the procedures for its conclusion.

The text of the Agreement is annexed to this Decision.

Done at Brussels,

For the Council
The President

For the Commission
The President

5

AGREEMENT ON SCIENTIFIC AND TECHNOLOGICAL COOPERATION
BETWEEN THE EUROPEAN COMMUNITY AND THE EUROPEAN ATOMIC
ENERGY COMMUNITY OF THE ONE PART AND THE SWISS CONFEDERATION
OF THE OTHER PART

THE  COUNCIL  OF  THE  EUROPEAN  UNION,  acting  on  behalf  of  the  European
Community, and THE COMMISSION OF THE EUROPEAN COMMUNITIES (hereinafter
referred  to  as  "the  Commission"),  acting  on  behalf  of  the  European  Atomic  Energy
Community, hereinafter referred to collectively as "the Communities",

of the one part, and

THE SWISS FEDERAL COUNCIL, acting on behalf of the Swiss Confederation, hereinafter
referred to as "Switzerland",

of the other part,

hereinafter referred to as "the Parties",

CONSIDERING  that  the close  relationship between Switzerland and the Communities is of
benefit to the Parties;

CONSIDERING the importance of scientific and technological research for the Communities
and for Switzerland and their mutual interest in cooperating in  this  matter  in  order  to  make
better use of resources and to avoid unnecessary duplication;

WHEREAS  Switzerland  and  the  Communities  are  currently 
programmes in fields of common interest;

implementing  research

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

CONSIDERING the interest of the Parties in encouraging the mutual access of their research
entities to research and technological development activities in Switzerland, on the one hand,
and 
technological
development, on the other;

the  Communities'  Framework  Programmes  for  research  and 

to 

WHEREAS  the  European  Atomic  Energy  Community  and  Switzerland  concluded  a
Cooperation  Agreement  in  1978  in  the  field  of  controlled  thermonuclear  fusion  and  plasma
physics (hereinafter referred to as the "Fusion Agreement");

WHEREAS the Parties concluded a Framework Agreement on 8 January 1986 for scientific
and technical cooperation, which entered into force on 17 July 1987 (hereinafter referred to as
"the Framework Agreement");

CONSIDERING that Article 6 of the Framework Agreement states that the cooperation aimed
at by the Framework Agreement is to be carried out through appropriate agreements;

6

WHEREAS  on  21  June  1999  the  Communities  and  Switzerland  signed  an  Agreement  on
Scientific and Technological Cooperation,2 which expired on 31 December 2002;

CONSIDERING that Article 9(2) of the abovementioned Agreement provides for renewal of
the Agreement with a view to participation in new multiannual Framework Programmes for
research and technological development, under mutually agreed conditions;

WHEREAS  the  Sixth  Framework  Programme  of  the  European  Community  for  research,
technological development and demonstration activities  (2002  to  2006)  (hereinafter  referred
to  as  "the  Sixth  EC  Framework  Programme")  was  adopted  by  Decision  No 1513/2002/EC3
and Regulation (EC) No 2321/20024 of the European Parliament and of the Council, and by
Council Decisions 2002/834/EC,5 2002/835/EC6 and 2002/836/EC7 and the Sixth Framework
Programme of the European Atomic Energy Community (Euratom) for nuclear research and
training activities, also contributing to the creation of the  European  Research Area (2002 to
2006)  was  adopted  by  Council  Decision 2002/668/Euratom,8  Council  Regulation  (Euratom)
No 2322/20029  and  Council  Decisions  2002/837/Euratom10  and  2002/838/Euratom11
(hereinafter referred to as "the Sixth EC and Euratom Framework Programmes");

WHEREAS without prejudice to the provisions of the Treaties establishing the Communities,
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 Switzerland in the fields of science,
technology, research and development, and to conclude, where appropriate, agreements to that
end,

HAVE AGREED AS FOLLOWS:

Article 1

Subject matter

1.

2.

2

3

4

5

6

7

8

9

10

11

The form and conditions of Swiss participation in the implementation of the whole of
the  Sixth  EC  and  Euratom  Framework  Programmes  shall  be  as  laid  down  in  this
Agreement,  without  prejudice 
the  Fusion  Agreement.
the 
Legal  entities  established  in  Switzerland  may  participate  in  all  the  specific
programmes of the Sixth EC and Euratom Framework Programmes.

terms  of 

to 

Swiss legal entities may participate in the activities of the Joint Research Centre of
the Communities, as far as this participation is not covered by paragraph 1.

OJ L 114, 30.4.2002, p.,468.
OJ L 232, 29.8.2002, 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.
OJ L 232, 29.8.2002, p. 34.
OJ L 355, 30.12.2002, p. 35.
OJ L 294, 29.10.2002, p. 74.
OJ L 294, 29.10.2002, p. 86.

7

                                                
3.

4.

Legal entities established in the  Communities,  including  the  Joint  Research  Centre,
may  participate  in  research  programmes  and/or  projects  in  Switzerland  on  themes
equivalent  to  those  of  the  programmes  of  the  Sixth  EC  and  Euratom  Framework
Programmes.

For  the  purposes  of  this  Agreement  "legal  entity"  means  any  natural  or  any  legal
person  created  under  the  national  law  at  its  place  of  establishment  or  under
Community  law,  having  legal  personality  and  being  entitled  to  have  rights  and
obligations of  any  kind  in  its  own  name.  This  shall  include,  inter  alia,  universities,
research  organisations,  industrial  companies,  including  small  and  medium-sized
enterprises, and individuals.

Article 2

Forms and means of cooperation

Cooperation shall take the following forms:

1.

2.

3.

4.

(a)

Participation  of  legal  entities  established  in  Switzerland  in  all  specific  programmes
adopted  under  the  Sixth  EC  and  Euratom  Framework  Programmes,  in  accordance
with  the  terms  and  conditions  laid  down  in  the  rules  for  the  participation  of
undertakings,  research  centres  and  universities  both  in  research,  technological
development  and  demonstration  activities  of  the  European  Community  and  in
research and training activities of the European Atomic Energy Community.

Switzerland  shall  be  taken  into  consideration,  alongside  the  Member  States  of  the
European Union, for any indirect action under the Sixth EC Framework Programme
based on Article 169 of the Treaty establishing the European Community, subject to
participation in the same indirect action by at least two Member States or associated
candidate countries.

Financial contribution by Switzerland to the budgets of the programmes adopted for
the  implementation  of  the  Sixth  EC  and  Euratom  Framework  Programmes,  as
defined in Article 5(2).

Participation  of  legal  entities  established  in  the  Communities  in  Swiss  research
programmes and/or projects decided by the Federal Council on themes equivalent to
those of the Sixth EC and Euratom Framework Programmes, in accordance with the
terms  and  conditions  laid  down  in  the  relevant  Swiss  regulations  and  with  the
agreement  of  the  partners  in  the  specific  project  and  the  management  of  the
corresponding  Swiss  programme.  Legal  entities  established  in  the  Communities
participating  in  Swiss  research  programmes  and/or  projects  shall  cover  their  own
costs,  including  their  relative  share  of  the  project's  general  management  and
administrative costs.

In  addition  to  timely  provision  of  information  and  documentation  concerning  the
implementation  of  the  Sixth  EC  and  Euratom  Framework  Programmes  and  of  the
Swiss programmes and/or projects, the cooperation between the Parties may include
the following forms and means:

regular exchanges of views on research policy guidelines and priorities and plans in
Switzerland and in the Communities;

8

(b)

(c)

(d)

(e)

(f)

exchanges of views on the prospects and development of cooperation;

timely exchanges of information on the implementation of the research programmes
and projects in Switzerland and in the  Communities  and on  the results of the work
undertaken under this Agreement;

joint meetings;

visits and exchanges of researchers, engineers and technicians;

regular contacts and follow-up between programme or project leaders in Switzerland
and in the Communities;

(g)

participation by experts in seminars, symposia and workshops.

Article 3

Adaptation

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

1.

2.

1.

Article 4

Intellectual property rights and obligations

Subject  to  Annex  A  and  applicable  law,  legal  entities  established  in  Switzerland
participating in the Communities' 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 legal entities established
in  the  Communities.  This  provision  shall  not  apply  to  the  results  obtained  from
projects started before the entry into force of this Agreement.

Subject to Annex A and applicable law, legal entities established in the Communities
taking  part  in  Swiss  research  programmes  and/or  projects,  as  provided  for  in
Article 2(3),  shall,  as  regards  ownership,  exploitation  and  dissemination  of
information and intellectual property arising from such participation, have the same
rights and obligations as legal entities established in Switzerland participating in the
programmes and/or projects in question.

Article 5

Financial provisions

Commitments entered  into by  the Communities prior to  the entry  into  force  of  this
Agreement - as well as the payments which result from these - shall give rise to no
contribution on the part of Switzerland. Switzerland's financial contribution deriving
from  participation  in  the  implementation  of  the  Sixth  EC  and  Euratom  Framework
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

9

to  be  carried  out  in  the  forms  necessary  for  the  implementation,  management  and
operation of the programmes and activities covered by this Agreement.

2.

The proportionality factor governing Switzerland's contribution to the Sixth EC and
Euratom  Framework Programmes, except  the  Fusion Programme, shall  be  obtained
by  establishing  the  ratio  between  Switzerland's  gross  domestic  product,  at  market
prices,  and  the  sum  of  gross  domestic  products,  at  market  prices,  of  the  Member
States of the European Union. The Swiss contribution to the Fusion Programme shall
continue to be calculated on the basis of the corresponding agreement.

This ratio shall be calculated on the basis of the latest statistical data from Eurostat,
available at the time of publication of the preliminary draft budget of the European
Union for the same year.

3.

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

Article 6

Switzerland/Communities Research Committee

1.

The  "Switzerland/Communities  Research  Committee"  set  up  in  the  Framework
Agreement  shall  review,  evaluate  and  ensure  the  proper  implementation  of  this
Agreement.  Any  issues  arising  from  the  implementation  or  interpretation  of  this
Agreement shall be referred to this Committee.

2.

The Committee may decide to amend the references to Community acts in Annex C.

Article 7

Participation

1.

2.

3.

4.

Without  prejudice  to  the  provisions  of  Article  4,  legal  entities  established  in
Switzerland participating in the Sixth EC and Euratom Framework Programmes shall
have  the  same  contractual  rights  and  obligations  as  entities  established  in  the
Communities.

For legal entities established in Switzerland, the terms and conditions applicable for
the submission and evaluation of proposals and those for the granting and conclusion
of  contracts  under  the  Communities'  programmes  shall  be  the  same  as  those
applicable  for  contracts  concluded  under  the  same  programmes  with  legal  entities
established in the Communities.

An  appropriate  number  of  Swiss  experts  shall  be  taken  into  consideration  in  the
selection of evaluators or referees under the Communities' research and technological
development programmes.

Without prejudice to the provisions of Article 1(3), Article 2(3) and Article 4(2) and
to  existing  regulations  and  rules  of  procedure,  legal  entities  established  in  the
Communities  may  participate  under  equivalent  terms  and  conditions  to  Swiss
partners in programmes and/or projects of the Swiss research programmes mentioned
in Article 2(3). The Swiss authorities may make participation in a project by one or

10

more legal entities established in the Communities subject to joint participation by at
least one Swiss entity.

Article 8

Mobility

Each Party shall undertake, in accordance with existing regulations and agreements in force,
to guarantee the entry and stay - as far as indispensable for successful accomplishment of the
activity concerned - of a limited number of their researchers participating, in Switzerland and
in the Communities, in the activities covered by this Agreement.

Article 9

Revision and future collaboration

1.

2.

Should the Communities revise or extend their research programmes, this Agreement
may  be  revised  or  extended  under  mutually  agreed  conditions.  The  Parties  shall
exchange information and views concerning any such revision or extension, as well
as on any matters which affect directly or indirectly Switzerland's cooperation in the
fields  covered  by  the  Sixth  EC  and  Euratom  Framework  Programmes.  Switzerland
shall be notified of the exact content of the revised or extended programmes within
two  weeks  of  their  adoption  by  the  Communities.  In  case  of  such  revision  or
extension of the research programmes, Switzerland may terminate this Agreement by
giving six months' notice. The Parties shall give notice of any intention to terminate
or  to  extend  this  Agreement  within  three  months  after  the  adoption  of  the
Communities' decision.

Should  the  Communities  adopt  new  multiannual  Framework  Programmes  for
research  and  technological  development,  this  Agreement  may  be  renewed  or
renegotiated under conditions agreed mutually between the Parties. The Parties shall
exchange  information  and  views  on  the  preparation  of  such  programmes  or  other
current and future research activities through the Switzerland/Communities Research
Committee.

Article 10

Relation to other international agreements

The provisions of this Agreement shall apply  without prejudice to the advantages envisaged
by  other  international  agreements  binding  one  of  the  Parties  and  reserved  only  for  legal
entities established on the territory of that Party.

11

Article 11

Territorial application

This  Agreement  shall  apply,  on  the  one  hand,  to  the  territories  in  which  the  Treaties
establishing the Communities are applied and under the conditions laid down in those Treaties
and, on the other, to the territory of Switzerland.

Article 12

Annexes

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

Article 13

Amendment and termination

1.

2.

3.

4.

1.

2.

This Agreement shall apply for the duration of the Sixth EC and Euratom Framework
Programmes.

This Agreement  may be  amended  only  in  writing  by  common consent  between  the
Parties. The procedure for entry into force of the  amendments  shall  be the same  as
the procedure applicable to this Agreement.

Each Party may terminate this Agreement at any time, subject to six 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. The Parties shall settle by common consent any other consequences
of termination.

Article 14

Entry into force and provisional application

This Agreement shall be ratified or concluded by the Parties in accordance with their
respective  rules.  It  shall  enter  into  force  on  the  dates  of  the  final  notification  of
completion  of  the  procedures  necessary  to  this  end  and  shall  come  into  effect  on
1 January 2004.

Should the procedures for ratification or conclusion of the Agreement signed not be
completed  in  2003,  the  Parties  shall  apply  this  Agreement  provisionally  from
1 January 2004 until its entry into force.

Should one of the Parties inform the other that it will not conclude the Agreement, it
is hereby agreed that:

12

–  the  Communities  shall  reimburse  to  Switzerland  its  contribution  to  the  general

budget of the European Union, as provided for in Article 2(2);

–  however,  the  funds  committed  by  the  Communities  for  participation  by  legal
entities established in Switzerland in indirect action, including the reimbursements
provided  for  in  Article  2(1),  shall  be  deducted  by  the  Communities  from  the
abovementioned reimbursement;

–  projects  and  activities  started  during  this  provisional  application  and  still  in
progress at the time of the abovementioned notification shall continue until their
completion under the conditions laid down in this Agreement.

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

Done at … , ...

For the European Communities

For the Swiss Confederation

13

ANNEX A

Principles on the allocation of intellectual property rights

I.       SCOPE

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

For  the  purposes  of  this  Agreement,  "knowledge"  means  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.      INTELLECTUAL PROPERTY RIGHTS OF THE LEGAL ENTITIES OF THE PARTIES

1.

2.

3.

Each Party shall ensure that the intellectual property rights of the legal entities of the
other  Party  participating  in  the  activities  undertaken  under  this  Agreement  and  the
rights  and  obligations  resulting  from  such  participation  are  treated  in  a  manner
compatible  with  the  relevant  international  conventions  applicable  to  the  Parties,
notably the TRIPS Agreement (Agreement on Trade-Related Aspects of Intellectual
Property  Rights  administered  by  the  World  Trade  Organisation),  the  Berne
Convention (Paris Act 1971) and the Paris Convention (Stockholm Act 1967).

Legal  entities  established  in  Switzerland  participating  in  indirect  action  under  the
Sixth  EC  and  Euratom  Framework  Programmes  shall  have  intellectual  property
rights and obligations under the conditions set out in Regulation (EC) No 2321/2002
the  Council,12  in  Council  Regulation
of 
No 2322/2002  (Euratom)13  and  in  the  contract  concluded  with  the  European
Community, in accordance with paragraph 1.

the  European  Parliament  and  of 

Where  Switzerland  participates  in  indirect  action  under  the  Sixth  EC  Framework
Programme, implemented in accordance with Article 169 of the Treaty establishing
the  European  Community,  Switzerland  shall  have  the  same  intellectual  property
rights  and  obligations  as  the  Member  States  participating  therein,  as  set  out  in  the
relevant decision of the European Parliament and of the Council and in the contract
concluded with the European Community, in accordance with paragraph 1.

Legal entities established in a European Union Member State participating in Swiss
research programmes and/or projects shall have the same intellectual property rights
and  obligations  as  legal  entities  established  in  Switzerland  participating  in  these
research programmes or projects, in accordance with paragraph 1.

12

13

OJ L 355, 30.12.2002, p. 23.
OJ L 355, 30.12.2002, p. 35.

14

                                                
III.    INTELLECTUAL PROPERTY RIGHTS OF THE PARTIES

1.

(a)

(b)

2.

(a)

(b)

3.

(a)

(b)

(c)

(d)

Unless otherwise  agreed between  the  Parties,  the  following  rules  shall  apply  to  the
knowledge  generated  by  the  Parties  in  the  course  of  the  activities  undertaken  in
accordance with Article 2(4) of this Agreement:

The  Party  generating  the  knowledge  shall  have  ownership  thereof.  Where  their
respective  shares  in  the  work  cannot  be  determined,  the  Parties  shall  co-own  the
knowledge.

The  Party  holding  ownership  shall  grant  the  other  Party  rights  of  access  to  the
knowledge with a view to the activities referred to in Article 2(4) of this Agreement.
No charge shall be made for granting rights of access to the knowledge.

Unless  otherwise  agreed  between  the  Parties,  the  following  rules  shall  apply  to
scientific literature from the Parties:

Where a Party publishes data, information and technical or scientific results arising
from the activities undertaken under this Agreement in journals, articles, reports and
books,  including  audiovisual  works  and  software,  a  worldwide,  non-exclusive,
irrevocable  royalty-free  licence  to  translate,  adapt,  transmit  and  publicly  distribute
the works in question shall be granted to the other Party.

All  copies  of  copyrighted  data  and  information  to  be  publicly  distributed  and
prepared under this section shall indicate the names of the author or authors, unless
an  author  expressly  declines  to  be  named.  Copies  shall  also  bear  a  clearly  visible
acknowledgement of the cooperative support of the Parties.

Unless  otherwise  agreed  between  the  Parties,  the  following  rules  shall  apply  to
undisclosed information of the Parties:

At the time of submission to the other Party of information relating to the activities
undertaken under this Agreement, each Party shall identify the information which it
wishes to remain undisclosed.

For the specific purposes of application of this Agreement, the receiving Party may,
on its own responsibility, communicate undisclosed information to bodies or persons
under its authority.

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

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

15

character  of  the  information  before  it  was  communicated,  in  accordance  with
paragraph 3(a).

(e)

Each Party shall ensure that undisclosed information which it acquires in accordance
with paragraphs 3(a) and 3(d) shall be controlled as provided for in this Agreement.
If one of the Parties becomes aware that it will be, or  may be  expected  to become,
unable to meet the non-dissemination provisions of paragraphs 3(a) and 3(d), it shall
immediately inform the other Party. The Parties shall thereafter consult to define an
appropriate course of action.

16

ANNEX B

Financial rules governing the contribution of Switzerland referred to in Article 5 of this
Agreement

I.       DETERMINATION OF FINANCIAL PARTICIPATION

1.

(a)

(b)

2.

The  Commission  shall  communicate 
together  with  relevant
background  material  as  soon  as  possible  and  at  the  latest  on  1  September  of  each
year:

to  Switzerland 

the  amounts  in  commitment  appropriations  in  the  statement  of  expenditure  of  the
preliminary draft budget of the European Union corresponding to the two Framework
Programmes;

the estimated amount of the contributions derived from the preliminary draft budget,
corresponding 
two  Framework
Programmes.

the  participation  of  Switzerland 

the 

to 

in 

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  Switzerland  the  abovementioned  amounts  in  the  statement  of
expenditure corresponding to the participation of Switzerland.

II.      PAYMENT PROCEDURES

1.

2.

3.

4.

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

–  six twelfths of Switzerland's contribution not later than 20 July, and

–  six twelfths of its contribution not later than 15 December.

However,  in  the  last  year  of  the  two  Framework  Programmes,  the  full  amount  of
Switzerland's contribution shall be paid not later than 20 July.

The contributions of Switzerland shall be expressed and paid in euros.

Switzerland  shall  pay  its  contribution  under  this  Agreement  according  to  the
schedule  in  paragraph  1.  Any  delay  in  payment  shall  give  rise  to  the  payment  of
interest  at  a  rate  equal  to  the  one-month  inter-bank  offered  rate  (EURIBOR)  as  on
page 248 of 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  30  days  after  the
scheduled payment dates mentioned in paragraph 1.

Travel costs incurred by Swiss representatives and experts for the purposes of taking
part in the work of the research committees and those involved in the implementation
of the two  Framework Programmes shall be  reimbursed by the Commission on the

17

same  basis  as,  and  in  accordance  with,  the  procedures  currently  in  force  for  the
representatives and experts of the Member States of the Communities.

III.    CONDITIONS FOR IMPLEMENTATION

1.

2.

The  financial  contribution  of  Switzerland  to  the  two  Framework  Programmes  in
accordance  with  Article  5  of  this  Agreement  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  Switzerland,  taking  into  consideration  modifications  which  have
taken  place,  either  by  transfer,  cancellations,  carry-overs,  or  by  supplementary  and
amending  budgets  during  the  financial  year.  This  regularisation  shall  occur  at  the
time  of  the  first  payment  for  the  year  n+1.  However,  the  final  such  regularisation
shall  occur  not  later  than  July  of  the  fourth  year  following  the  end  of  the  two
Framework Programmes.

Payment by Switzerland shall be credited to the European Communities' programmes
as  budget  receipts  allocated  to  the  appropriate  budget  heading  in  the  statement  of
revenue of the general budget of the European Union.

IV.    INFORMATION

1.

2.

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

The  Commission  shall  communicate  to  Switzerland  all  other  general  financial  data
relating  to  the  implementation  of  the  two  Framework  Programmes  which  is  made
available to the associated States.

18

ANNEX C

Financial control of Swiss participants in the Community programmes covered by this
Agreement

I.       DIRECT COMMUNICATION

The  Commission  shall  communicate  directly  with  the  participants  in  the  Sixth  EC  and
Euratom  Framework  Programmes  established  in  Switzerland  and  with  their  subcontractors.
They  may  submit  directly  to  the  Commission  all  relevant  information  and  documentation
which they are required to submit on the basis of the instruments referred to in this Agreement
and of the contracts concluded to implement them.

II.      AUDITS

1.

2.

3.

4.

5.

In  accordance with Regulations (EC,  Euratom)  No 1605/2002  of  25  June  2002  and
(EC, Euratom) No 2342/2002 of 23 December 2002 and with the other rules referred
to  in  this  Agreement,  the  contracts  concluded  with  participants  in  the  programme
established  in  Switzerland  may  provide  for  scientific,  financial,  technological  or
other  audits to be conducted  at  any  time  on  the  premises  of  the  participants  and  of
their  subcontractors  by  Commission  agents  or  by  other  persons  mandated  by  the
Commission.

Commission  agents  and  other  persons  mandated  by  the  Commission  shall  have
appropriate access to sites, works and documents and to all the information required
in  order  to  carry  out  such  audits,  including  in  electronic  form.  This  right  of  access
shall  be  stated  explicitly  in  the  contracts  concluded  to  implement  the  instruments
referred to in this Agreement.

The European Court of Auditors shall have the same rights as the Commission.

The  audits  may  be  conducted  after  the  Sixth  EC  and  Euratom  Framework
Programmes  or  this  Agreement  expire,  on  the  terms  laid  down  in  the  contracts  in
question.

The Swiss Federal Audit Office shall be informed in advance of the audits conducted
on Swiss territory. Such notification shall not be a legal precondition for carrying out
such audits.

III.    ON-THE-SPOT CHECKS

1.

2.

Within  the  framework  of  this  Agreement,  the  Commission  (OLAF)  shall  be
authorised  to  carry  out  on-the-spot  checks  and  inspections  on  Swiss  territory,  in
accordance with the terms and conditions laid down in Council Regulation (Euratom,
EC) No 2185/96 of 11 November 1996.

On-the-spot  checks  and  inspections  shall  be  prepared  and  conducted  by  the
Commission in close collaboration with the Swiss Federal Audit Office or with the
other  competent  Swiss  authorities  designated  by  the  Swiss  Federal  Audit  Office,
which  shall  be  notified  in  good  time  of  the  object,  purpose  and  legal  basis  of  the
checks and inspections, so that they can  provide all the  requisite help. To  that end,

19

3.

4.

5.

the  officials  of  the  competent  Swiss  authorities  may  participate  in  the  on-the-spot
checks and inspections.

If  the  Swiss  authorities  concerned  so  wish,  the  on-the-spot  checks  and  inspections
may be carried out jointly by the Commission and them.

Where the participants in the Sixth EC and Euratom Framework Programmes resist
an on-the-spot check or inspection, the Swiss authorities, acting in accordance with
national  rules,  shall  give  Commission  inspectors  such  assistance  as  they  need  to
allow them to discharge their duty in carrying out an on-the-spot check or inspection.

The Commission shall report as soon as possible to the Swiss Federal Audit Office
any  fact or suspicion relating to an irregularity which  has  come  to  its  notice  in  the
course of the on-the-spot check or inspection. In any event the Commission shall be
required  to  inform  the  abovementioned  authority  of  the  result  of  such  checks  and
inspections.

IV.    INFORMATION AND CONSULTATION

1.

2.

For the purposes of proper implementation of this Annex, the competent Swiss and
Community  authorities  shall  regularly  exchange  information  and,  at  the  request  of
one of the Parties, shall conduct consultations.

The competent Swiss authorities shall inform the Commission without delay of any
fact  or  suspicion  which  has  come  to  their  notice  relating  to  an  irregularity  in
connection  with  the  conclusion  and  implementation  of  the  contracts  concluded  in
application of the instruments referred to in this Agreement.

V.      CONFIDENTIALITY

Information  communicated  or  acquired  in  any  form  under  this  Annex  shall  be  covered  by
professional  secrecy  and  protected  in  the  same  way  as  similar  information  is  protected  by
Swiss  law  and  by  the  corresponding  provisions  applicable  to  the  Community  institutions.
Such  information  may  not  be  communicated  to  persons  other  than  those  within  the
Community institutions or in the Member States or Switzerland whose functions require them
to  know  it  nor  may  it  be  used  for  purposes  other  than  to  ensure  effective  protection  of  the
Parties' financial interests.

VI.    ADMINISTRATIVE MEASURES AND PENALTIES

Without prejudice to application of Swiss criminal law, administrative measures and penalties
may  be  imposed  by  the  Commission  in  accordance  with  Regulations  (EC,  Euratom)
No 1605/2002 of 25 June 2002 and (EC, Euratom) No 2342/2002 of 23 December 2002 and
with Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection
of the European Communities' financial interests.

VII.   RECOVERY AND ENFORCEMENT

Decisions  taken  by  the  Commission  under  the  Sixth  EC  Framework  Programme  within  the
scope  of  this  Agreement  which  impose  a  pecuniary  obligation  on  persons  other  than  States
shall  be  enforceable  in  Switzerland.  The  enforcement  order  shall  be  issued,  without  any
further control than verification of the authenticity of the act, by the authorities designated by

20

the  Swiss  government,  which  shall  inform  the  Commission  thereof.  Enforcement  shall  take
place  in  accordance  with  the  Swiss  rules  of  procedure.  The  legality  of  the  enforcement
decision shall be subject to control by the Court of Justice of the European Communities .

Judgments  given  by  the  Court  of  Justice  of  the  European  Communities  pursuant  to  an
arbitration clause in a contract under the Sixth EC and Euratom Framework Programmes shall
be enforceable on the same terms.

21

LEGISLATIVE FINANCIAL STATEMENT

Policy area(s): RESEARCH AND TECHNOLOGICAL DEVELOPMENT

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

TITLE OF ACTION: PROPOSAL FOR A DECISION OF THE COUNCIL AND OF THE COMMISSION ON
THE SIGNATURE ON BEHALF OF THE EUROPEAN COMMUNITY AND OF THE EUROPEAN
ATOMIC  ENERGY  COMMUNITY  OF  THE  AGREEMENT  ON  SCIENTIFIC  AND
TECHNOLOGICAL  COOPERATION  BETWEEN  THE  EUROPEAN  COMMUNITIES  AND  THE
SWISS CONFEDERATION

1. 

BUDGET LINE(S) + HEADING(S)

–  Participation  in  indirect  action  by  Swiss  entities,  as  well  as  costs  in  connection  with  the
implementation  of  the  Agreement  (travelling  expenses  of  European  experts  and  of
Commission officials on mission, workshops, seminars and meetings) will be charged to the
specific budget headings for the specific  programmes  of  the  Framework Programmes of the
European  Community  and  of  the  European  Atomic  Energy  Community  (B6  1/1001  and
B6 601/08 01).

–  Swiss participation

Chapter 60 (revenue),  Articles  B6 451/10 0205,  10 0304  and  B6  551/02  0303,  06  0604,  08
1203, 09 0404, 11 0502 (expenditure).
Switzerland’s contribution to the Framework Programmes budget will be proportionate to its
GDP compared with that of the Union (see point 2.5), with the exception of its contribution to
the budget of the priority thematic area of research "Controlled thermonuclear fusion" in the
Euratom  Framework  Programme,  where  its  contribution  will  be  proportionate  to  its  GDP
compared with the sum of its GDP plus that of the Union. It will be allocated to the various
specific programmes of the Framework Programme in proportion to their budgets.

2. 

OVERALL FIGURES

2.1. 

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

2.2. 

Period of application:

1 January 2004 – 31 December 2006. Renewal arrangements are laid down in Article 9
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

0.156

0.156

0.156

Payments

0.156

0.156

0.156

22

(b)

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

2003

2004

2005

2006

Commitments

Payments

0

0

0

0

0

0

0

0

Subtotal

Commitments

0.156

0.156

0.156

(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

0.156

0.156

0.156

0.156

0.156

0.156

2.4. 

Compatibility with financial programming and financial perspective

Proposal is compatible with existing financial programming.

2.5. 

Financial impact on revenue

Financial impact: The effect on revenue is as follows:

Switzerland’s  contribution  to  the  EC  and  Euratom  Framework  Programmes  will  be
proportionate  to  its  GDP  compared  with  that  of  the  Union,  with  the  exception  of  its
contribution  to  the  budget  of  the  priority  thematic  area  of  research  "Controlled
thermonuclear  fusion"  in  the  Euratom  Framework  Programme,  where  its  contribution
will  be  proportionate  to  its  GDP  compared  with  the  sum  of  its  GDP  plus  that  of  the
Union. This distinction laid down in Article 5(2) of the Agreement is maintained.

Estimated contribution to 6th FPs based on 2001 GDP (EUROSTAT, statistics in focus
– theme 2):

GDP 2001

(million €)

GDP EUR 15

8 859 870.929

GDP Switzerland

274 662.029

Ratio (except Fusion)

Ratio (Fusion)

3.100 %

3.007 %

23

Estimated contribution

(million €)

Year

2004

2005

2006

Budget
(EC +
Euratom
except Fusion)

Contribution
(EC + Euratom
except Fusion)

Budget
(Fusion)

Contribution
(Fusion)

Total
estimated
contribution

4 156.7

4 344.6

4 476.0

128.9

134.7

138.7

402.3

153.3

155.4

159.0

467.7

4.6

4.7

4.8

14.1

133.5

139.4

143.5

416.4

Total

12 977.3

N.B.:

–  The calculation is based on the 2004 preliminary draft budget for EUR15, pending adoption
of the definitive budget for 2004 and revision of the legal bases. In the long term, enlargement
will have an effect both on calculation of the proportionality factor (EUR 25) and on the total
budgets for 2004 to 2006 (adaptation of the Sixth Framework Programme).

–  The proportionality factors for 2005 and 2006 will also be adjusted in line with GDP trends at

the time of publication of each preliminary draft budget.

–  Only  operating  expenditure  is  counted  in  the  case  of  the  Fusion  Programme.  The
corresponding administrative expenditure is not charged action by action, but for the Euratom
Framework Programme as a whole, in accordance with the ABB structure.

3. 

BUDGET CHARACTERISTICS

Type of expenditure

New

EFTA
contribution

Contributions
from
applicant
countries

Heading in
financial
perspective

Non-comp.

Diff.

NO

YES

YES

No 3

4. 

LEGAL BASIS

Articles 170 and 300 of the EC Treaty and Article 101(2) of the Euratom Treaty.

5. 

DESCRIPTION AND GROUNDS

5.1. 

Need for Community intervention

is 

indispensable  as 

Community  funding 
the
implementation  of  the  Framework  Programmes,  including  the  budget  section:  participation  by
Switzerland in the specific programmes and administrative expenditure by the Community side
(missions by experts and EU officials; organisation of workshops, seminars and meetings in the
European Community and Switzerland).

the  planned  cooperation  forms  part  of 

24

5.1.1.  Objectives pursued

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

Beneficiaries  in  the  European  Community  and  Switzerland  will  be  the  scientific  community,
industry and the population generally, thanks to the direct and indirect impact of cooperation.

5.2. 

Action envisaged and budget intervention arrangements

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

5.3.  Methods of implementation

Direct management by the Commission.

6. 

FINANCIAL IMPACT

6.1. 

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

6.2. 

Calculation of costs by measure envisaged in Part B (over the entire programming
period)14

7. 

IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE

7.1. 

Impact on human resources

7.2. 

Overall financial impact of human resources

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

14

For further information, see separate explanatory note.

25

                                                
7.3. 

Other administrative expenditure deriving from the action

The amounts are total expenditure for twelve months.

Expenditure on management of the Agreement (estimate)

Travel expenses per year

EU experts' missions to Switzerland
within the framework of the specific programmes covering the four activities

50 EU experts (for 100 projects) x 3 nights = 50 experts x 3 nights

Prices per mission:

1 return travel

per diem

expert fees

(around €800)

(€150 x 3)

(€250 x 3)

TOTAL

€800

€450

€750

€2000

Total costs for 50 missions

€100 000

+ 10% margin

€110 000

EU officials' missions to Switzerland
(DG RTD, INFSO, ENTR, AGRI, FISH, TREN, JRC)

14 missions per year (management of the Agreement as a whole) (2 per DG)
+ 14 missions per year (specific programmes)

Total: 28 missions per year

return travel Brussels-Berne

(around €800)

nights in hotel:

per diem:

1 night (€140/night)

1 day x €150

TOTAL

Total costs for 28 missions

€800

€140

€150

€1090

€30 520

Workshops/seminars

2/year (estimate)

+ 10% margin

€33 572

€12 000

+ 10% margin

€13 200

Total

€156 772/year

The amounts are total expenditure for twelve months.

(1) Specify the type of committee and the group to which it belongs.

I.

II.

Annual total (7.2 + 7.3)

Duration of action

III.

Total cost of action (I x II)

€156 722

3 years

€470 166

26

8. 

FOLLOW-UP AND EVALUATION

8.1. 

Follow-up arrangements

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

(a)

Performance indicators

–  number of proposals put forward by Switzerland per specific programme compared

with the number of proposals selected for funding under the programme;

–  number  of  proposals  put  forward  by  Switzerland  compared  with  the  number  of

proposals selected for funding under the Framework Programmes;

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

–  number  of  Swiss  proposals  selected  for  funding  in  the  specific  programmes  of  the
Framework Programme compared with Switzerland’s relative  participation  in  those
programmes.

(b)

Gathering information:

On the basis of data on the specific programmes of the Framework Programmes.

(c)

Overall evaluation:

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

(d)

Corrections:

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

8.2. 

Arrangements and schedule for the planned evaluation

The Parties to the Agreement  will  evaluate  application  thereof  annually  in  the  meetings  of  the
joint  committee  referred  to  in  Article  6  thereof.  Renewal  of  this  Agreement  will  also  be
submitted  for  evaluation  by  each  of  the  Parties,  which  could  include  an  impact  assessment
entrusted to third parties.

9. 

ANTI-FRAUD MEASURES

When the implementation of the Framework Programmes 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.

27

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, deterrent and proportionate measures and sanctions.

In  order  to  achieve  this  aim,  rules  on  checks,  measures  and  sanctions,  with  reference  to
Regulations  No  2988/95,  2185/96,  1073/99  and  1074/99,  will  be  incorporated  in  all  contracts
used in the implementation of the Framework Programmes.

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

– 

– 

– 

– 

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 No 2185/96, 1073/1999 and 1074/1999;

the application of administrative sanctions for all intentional or negligent irregularities
in  the  implementation  of  the  contracts,  in  accordance  with  Framework  Regulation
No 2988/95, including a black listing mechanism;

the fact that possible recovery orders in case of irregularities and fraud be enforceable
according to Article 256 of the EC Treaty and Article 164 of the EAEC Treaty.

In addition and as routine measures, a control programme in respect of scientific and budgetary
aspects  will  be  carried  out  by  the  DG  Research  staff  responsible.  Local  inspections  will  be
carried out by the European Court of Auditors.

Finally,  Annex  C  to  the  draft  Agreement  provides  for  recognition  by  Switzerland  of  the
Community's right to conduct on-the-spot inspections on the premises of Swiss entities receiving
funds  from  the  Framework  Programmes,  together  with  recognition  of  the  enforceability  of
recovery  orders  issued  on  the  basis  of  Article  256  of  the  EC  Treaty,  the  enforceability  of
judgments  of  the  Court  of  Justice  of  the  European  Communities  and  arrangements  for
cooperation between the Swiss and Community authorities.

28